Corporations Amendment Regulations 2009 (No. 6)

Overview

The Corporations Amendment Regulations 2009 (No. 6) were enacted to address a specific gap in privacy protection for certain entities within the framework of the Corporations Act 2001. These regulations were introduced to respond to security concerns for members of restricted access insurers, such as those covering specific industries or groups, particularly where membership is limited to particular categories of people like employees of a police service. The enacting body for these regulations is the Minister for Financial Services, Superannuation and Corporate Law, under the authority of the Governor-General, as stipulated in the Corporations Act. The policy objective is to provide additional privacy safeguards to entities whose member lists may be equivalent to their customer lists, ensuring that such entities can maintain control over the disclosure of sensitive information contained in their registers of members. The Corporations Amendment Regulations 2009 (No. 6) extend the existing provisions under Part 2C.3 and 12.8 of the Corporations Regulations to include restricted access insurers as defined in the Private Health Insurance Act 2007. By adding 'restricted access insurer' to the list of entities under regulation 12.8.02, these regulations allow such insurers to restrict access to their member registers and to use mailing houses for sending materials to members without disclosing their member list publicly. This amendment is designed to protect the privacy and security of the members of these specific health funds. The regulations were subject to consultation with the Ministerial Council for Corporations and the Minister's decision to forgo the public consultation period was based on the narrow scope and targeted stakeholder engagement.

Scope and Application

The Corporations Amendment Regulations 2009 (No. 6) amends the Corporations Regulations 2001 by adding a new category of entities to those that can restrict access to their member registers. These regulations apply to restricted access insurers as defined under the Private Health Insurance Act 2007, which typically operate on a not-for-profit basis, covering specific industries or groups. The Act extends to these entities the option to restrict public access to their member registers to protect the privacy of their members, such as employees of a police service, who may have concerns about the security of their personal information. These entities can now require that any information obtained from their register will not be disclosed beyond specified purposes and individuals, and can refuse access if it is not in the best interest of the members as a whole. The regulations also allow these entities to arrange for mailing houses to distribute material directly to members without granting access to the register, thereby enhancing privacy protections. This amendment is made under the authority of the Corporations Act 2001, with consultation and approval from the Ministerial Council for Corporations, and is effective from the day after registration on the Federal Register of Legislative Instruments.

Key Provisions

The key provisions of the Corporations Amendment Regulations 2009 (No. 6) primarily focus on the regulation of member registers for certain types of corporations, particularly those that may require enhanced privacy protection (regulation 12.8.02). This regulation specifies which entities can restrict access to their member registers, which is essential for maintaining the confidentiality of sensitive information that might be equivalent to a customer list. Regulation 12.8.02 originally listed transferring financial institutions, companies permitted to use the expressions building society, credit society or credit union, and friendly societies. The new regulations extend this list to include 'restricted access insurers', as defined in the Private Health Insurance Act 2007. This addition responds to security concerns regarding the public access to member registers, especially for those insurers that cover specific industries or groups on a not-for-profit basis, such as police service employees. The obligations imposed by these regulations are primarily on the entities listed under regulation 12.8.02. These entities are now permitted to restrict access to their member registers, thereby preventing the public disclosure of sensitive information. They can also require that any information obtained from their registers is not divulged except to specified persons and is used only for specified purposes. Furthermore, these entities have the authority to refuse access to the register if they are not satisfied that allowing access is in the best interests of the members as a whole. Additionally, for entities listed under regulation 12.8.02, if a person seeks access to the register for the purpose of sending material to members, the entity can arrange for the material to be sent directly to the members via a mailing house without granting access to the register. This arrangement helps to maintain the privacy and security of the members' information. There are no explicit offences, penalties, or civil/criminal consequences detailed within the text for breaches of these regulations. However, the regulations are underpinned by the broader legal framework of the Corporations Act 2001, which provides for various sanctions for non-compliance with its provisions. Typically, breaches of the Corporations Act can lead to both civil and criminal penalties, including fines and imprisonment, depending on the severity and nature of the breach. The specific penalties would be determined in accordance with the relevant sections of the Act and any additional regulations or guidelines provided by the Australian Securities and Investments Commission (ASIC).