Financial Management and Accountability Regulations (Amendment)

Overview

The Financial Management and Accountability Regulations (Amendment) 1998 No. 261, issued under the authority of the Minister for Finance, were enacted to update the Financial Management and Accountability Regulations in alignment with the Financial Sector Reform legislation. This reform was a response to the recommendations of the Financial System Inquiry, also known as the Wallis Committee, and was aimed at enhancing the efficiency and effectiveness of financial sector regulation in Australia. The amendment addressed the problem of outdated references in the regulations by omitting the Insurance and Superannuation Commissioner and updating the references to the Australian Securities Commission to the Australian Securities and Investments Commission, reflecting the legislative changes that took effect from 1 July 1998. The primary objective of these amendments was to ensure that the regulations remained consistent and relevant with the new structures and nomenclature established by the Financial Sector Reform Act and its related legislation.

Scope and Application

The Financial Management and Accountability Regulations (Amendment) 1998 No. 261 applies to entities and persons involved in financial management and accountability within the framework of the Financial Management and Accountability Act 1997. These regulations specifically amend the Financial Management and Accountability Regulations to reflect changes in the financial sector as a result of the Financial Sector Reform legislation, which was enacted in response to the Financial System Inquiry. The amendments include the removal of the Insurance and Superannuation Commissioner from the Schedule of Prescribed Agencies, reflecting its abolition effective from 1 July 1998, and updating references to the Australian Securities Commission to the Australian Securities and Investments Commission, which became effective from the same date. These changes are consequential to the Financial Sector Reform (Amendments and Transitional Provisions) Act 1998 and are designed to ensure the regulations remain aligned with current legislative provisions. The regulations themselves commenced upon gazettal, and they affect the prescribed agencies listed in the Schedule, thereby impacting financial oversight and accountability across the relevant entities.

Key Provisions

The Financial Management and Accountability Regulations (Amendment) 1998 No. 261 makes changes to the Financial Management and Accountability Regulations (FMA Regulations) in response to the Financial Sector Reform legislation. The primary sections of these amendments (Regulations 1 to 3) concern the commencement of the regulations, the specific amendments made, and the updates to the Schedule of Prescribed Agencies (Regulation 3). Regulation 1 states that the regulations will commence on gazettal, making them immediately effective upon publication. Regulation 2 confirms that the FMA Regulations are amended as outlined in the document, and Regulation 3 details the changes to the Schedule of Prescribed Agencies, removing the Insurance and Superannuation Commissioner and updating references to the Australian Securities and Investments Commission (ASIC). The obligations and requirements imposed by these amendments centre around the updating of references to reflect changes in agency names and the removal of the abolished Insurance and Superannuation Commissioner from the list of prescribed agencies. These changes ensure that the FMA Regulations remain consistent with current legislative frameworks and accurately reflect the agencies subject to the Act. Specifically, Regulation 3.1 removes the Insurance and Superannuation Commissioner from the Schedule, while Regulations 3.2 to 3.4 update references to the Australian Securities and Investments Commission and the Australian Securities and Investments Commission Act 1989. The amendments made by the Financial Management and Accountability Regulations (Amendment) 1998 No. 261 do not introduce new offences, penalties, or civil/criminal consequences for breach. Instead, they ensure the regulations remain current and applicable to the agencies governed by the Financial Management and Accountability Act 1997. The primary purpose of these amendments is to maintain the integrity and relevance of the FMA Regulations in light of recent legislative changes. Failure to adhere to the updated regulations could lead to non-compliance with the Act, potentially resulting in administrative or legal consequences as prescribed by the Act. However, the specific consequences of non-compliance would be governed by the provisions of the Financial Management and Accountability Act 1997 rather than by the amendments themselves.