Financial Management and Accountability Amendment Regulations 2007 (No. 3)

Administered by Department of Finance

Legislation au F2007L01771 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2007 No. 158

 

Issued by the Authority of the Minister for Finance and Administration

 

Financial Management and Accountability Act 1997

 

Financial Management and Accountability Amendment Regulations 2007 (No. 3) (the Regulations)

 

The Financial Management and Accountability Act 1997 (the FMA Act) provides a framework of rules for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies.

Subsection 65(1) of the FMA Act provides that the Governor-General may make regulations prescribing matters required or permitted by the FMA Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the FMA Act.

Section 5 of the FMA Act provides that for the purposes of the FMA Act, a prescribed Agency means a body, organisation or group of persons prescribed by the regulations for the purposes of that definition. Agencies are prescribed in Schedule 1 to the Financial Management and Accountability Regulations 1997 (the Principal Regulations). Schedule 1 is divided into Part 1 which prescribes agencies that do not handle money other than public money and Part 2 which prescribes agencies that handle money other than public money.

The Regulations prescribe the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC) and the Corporations and Markets Advisory Committee (CAMAC) in Part 1 of Schedule 1 to the Principal Regulations.

 

Upon commencement of Schedules 1 and 2 of the Governance Review Implementation (Treasury Portfolio Agencies) Act 2007 (Treasury Portfolio Agencies Act), APRA, ASIC and CAMAC will cease to be Commonwealth authorities under the Commonwealth Authorities and Companies Act 1997. APRA, ASIC and CAMAC will instead become prescribed agencies under the FMA Act that do not handle money other than public money. In addition, upon commencement of Schedules 1 and 2 to the Treasury Portfolio Agencies Act, ASIC will cease to be a Commonwealth authority that also handles money other than public money under the FMA Act.

 

This follows an assessment of the governance of APRA, ASIC and CAMAC against the principles contained in the Review of the Corporate Governance of Statutory Authorities and Office Holders by Mr John Uhrig AC (Uhrig Review), which recommended that the governance of APRA, ASIC and CAMAC be moved into alignment with executive management arrangements, consistent with the FMA Act. Prescribed agencies are financially autonomous from their respective departments and responsible, under the FMA Act, for the proper management of public money and public property within their control or custody.

 

Accordingly, the Regulations amend the Principal Regulations to prescribe APRA, ASIC and CAMAC in Part 1 of Schedule 1 and remove the entry of ASIC in Part 2 of Schedule 1.

 

Further details of the Regulations are in the Attachment.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

In accordance with section 17 of the Legislative Instruments Act 2003 we consulted with The Treasury. No further consultation was undertaken in relation to the Regulations as they are of a minor or machinery nature and do not substantially alter existing arrangements.

 

Regulations 1, 2 and 3 commence the day after the proposed Regulations are registered. Schedule 1 to the proposed Regulations commences on the later of 1 July 2007 and the commencement of Schedules 1 and 2 of the Treasury Portfolio Agencies Act.


ATTACHMENT

 

Details of the Financial Management and Accountability Amendment Regulations 2007 (No. 3)

 

Regulation 1 - Name of Regulations

 

This regulation provides that the title of the Regulations is the Financial Management and Accountability Amendment Regulations 2007 (No. 3).

 

Regulation 2 – Commencement

 

This regulation provides for the commencement of the Regulations as follows:

  • Regulations 1, 2 and 3 to commence the day after the Regulations are registered; and
  • Schedule 1 to commence on the later of 1 July 2007 and the commencement of Schedules 1 and 2 of the Governance Review Implementation (Treasury Portfolio Agencies) Act 2007 (Treasury Portfolio Agencies Act).

 

Regulation 3 - Amendment of the Financial Management and Accountability Regulations 1997

This regulation provides that the Financial Management and Accountability Regulations 1997 (Principal Regulations) are amended as set out in Schedule 1.

Schedule 1

Item [1] – Schedule 1, Part 1

This amendment prescribes the Australian Prudential Regulation Authority (APRA) in Part 1 of Schedule 1 to the Principal Regulations, after item 114AB. As a result APRA becomes a prescribed agency that does not handle money other than public money under the Financial Management and Accountability Act 1997 (FMA Act).

Item [2] – Schedule 1, Part 1

This amendment prescribes the Australian Securities and Investments Commission (ASIC) in Part 1 of Schedule 1 to the Principal Regulations, after item 115. As a result ASIC becomes a prescribed agency that does not handle money other than public money under the FMA Act.

Item [3] – Schedule 1, Part 1

This amendment prescribes the Corporations and Markets Advisory Committee (CAMAC) in Part 1 of Schedule 1 to the Principal Regulations, after item 122. As a result CAMAC becomes a prescribed agency that does not handle money other than public money under the FMA Act.

Item [4] – Schedule 1, Part 2

This amendment removes the entry related to ASIC from Part 2 of Schedule 1 to the Principal Regulations as ASIC will cease to handle money other than public money under the FMA Act on commencement of the Regulations.

 

Item [5] – Schedule 1, Part 2

This amendment updates the wording of the note in Part 2 of Schedule 1 to the Principal Regulations, given that the removal of the ASIC entry by item [4] will leave only one entry in Part 2 of Schedule 1.

Overview

The Financial Management and Accountability Amendment Regulations 2007 (No. 3) were introduced to amend the Financial Management and Accountability Regulations 1997, as required by the Financial Management and Accountability Act 1997 (FMA Act). This Act provides a framework for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies. The Regulations were enacted to address the need to align the governance of the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC) and the Corporations and Markets Advisory Committee (CAMAC) with executive management arrangements, as recommended in the Uhrig Review. The amendments prescribe these entities as prescribed agencies under the FMA Act that do not handle money other than public money, in line with their transition from Commonwealth authorities under the Commonwealth Authorities and Companies Act 1997. The Regulations were issued by the Minister for Finance and Administration and are a legislative instrument under the Legislative Instruments Act 2003. The policy objective of these Regulations is to ensure that the governance and financial management arrangements for APRA, ASIC, and CAMAC are consistent with the FMA Act and the principles of the Uhrig Review.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2007 (No. 3) amend the Financial Management and Accountability Regulations 1997 to align the governance of certain agencies with the principles outlined in the Uhrig Review. Specifically, the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC), and the Corporations and Markets Advisory Committee (CAMAC) are prescribed as agencies under Part 1 of Schedule 1 of the Principal Regulations, meaning they are now subject to the Financial Management and Accountability Act 1997 (FMA Act) as bodies that do not handle money other than public money. The Regulations also remove ASIC from Part 2 of Schedule 1, reflecting its cessation as a Commonwealth authority that handles money other than public money under the FMA Act. These changes follow the governance review recommendations and the commencement of the Treasury Portfolio Agencies Act 2007, which effectively transfers the authority of these agencies under the FMA Act. The Regulations are legislative instruments under the Legislative Instruments Act 2003, with minor amendments made following consultation with The Treasury. The Regulations themselves commence the day after registration, while Schedule 1 takes effect on the later of 1 July 2007 or the commencement of the Treasury Portfolio Agencies Act.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2007 (No. 3) primarily amend the Financial Management and Accountability Regulations 1997 (FMA Regulations) by prescribing certain agencies under the Financial Management and Accountability Act 1997 (FMA Act). Specifically, Regulation 3 amends Schedule 1 of the FMA Regulations to include the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC), and the Corporations and Markets Advisory Committee (CAMAC) in Part 1, which lists agencies that do not handle money other than public money (Items [1], [2], and [3]). Additionally, it removes ASIC from Part 2, which previously listed agencies that handle money other than public money (Item [4]). The amendments also update the wording of the note in Part 2 to reflect the changes (Item [5]). The obligations imposed by these Regulations on the affected agencies primarily involve ensuring they adhere to the governance principles outlined in the Uhrig Review and manage public money and public property within their control or custody in accordance with the FMA Act. These agencies are now prescribed under the FMA Act and must comply with the financial management and accountability requirements set forth therein. They are also required to maintain financial autonomy from their respective departments, as stipulated by the FMA Act. Failure to comply with the provisions of the FMA Act and the associated Regulations could result in significant consequences. The FMA Act itself does not detail specific offences, penalties, or civil/criminal consequences for breaches of its provisions. However, breaches of financial management and accountability standards may lead to disciplinary actions, financial penalties, or other administrative consequences under the applicable laws and regulations. It is important for these agencies to maintain strict adherence to the requirements to avoid any such repercussions.

Legal classification tags

Area of Law
Administrative Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Commencement Provisions
Regulatory Standards
Licensing & Registration

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.