Financial Regulator Assessment Authority (Members and Chair) Appointment (No. 1) 2021

Overview

The Financial Regulator Assessment Authority (Members and Chair) Appointment (No. 1) 2021 was enacted to address the need for qualified individuals to be appointed as members and the Chair of the Financial Regulator Assessment Authority, a body established under the Financial Regulator Assessment Authority Act 2021. This notifiable instrument was introduced by Josh Frydenberg, the Treasurer of Australia, who was satisfied that the appointed individuals were qualified in accordance with the requirements of the Act. The enactment ensures that the Authority is effectively staffed with suitably experienced members who can contribute to the oversight and assessment of financial regulators in Australia. The overarching policy objective is to strengthen the regulatory framework governing financial services in the country, thereby enhancing the stability and integrity of the financial system.

Scope and Application

The Financial Regulator Assessment Authority (Members and Chair) Appointment (No. 1) 2021 is a legislative instrument issued under the Financial Regulator Assessment Authority Act 2021, which appoints three individuals to the Financial Regulator Assessment Authority (FRAA) and designates one of them as the Chair. The Act applies to the individuals appointed—Gina Cass-Gottlieb, Craig Drummond, and Nicholas Moore—who are to serve as part-time members of the FRAA for a term of five years. This legislation falls within the Commonwealth jurisdiction, impacting the federal regulatory framework for financial services in Australia. The scope of the Act is limited to the appointment of specified individuals to the FRAA, and it does not set out broader regulatory or operational functions of the FRAA itself. The appointment is effective from the day after the instrument is registered on the Federal Register of Legislation. The instrument extends the application of the Act by appointing specific members to the FRAA, but does not introduce exclusions or exemptions beyond the qualification requirements specified in the Act.

Key Provisions

The main operative sections of the Financial Regulator Assessment Authority (Members and Chair) Appointment (No. 1) 2021 instrument (F2021N00228) are the provisions that appoint Gina Cass-Gottlieb, Craig Drummond and Nicholas Moore as part-time members of the Financial Regulator Assessment Authority (sections 1 and 2), and the appointment of Nicholas Moore as Chair of the Authority (section 3). Under section 1, Gina Cass-Gottlieb, Craig Drummond and Nicholas Moore are appointed as members for a period of five years from the day after the instrument is registered on the Federal Register of Legislation. Section 2 stipulates that these appointments are made on the basis that each person is qualified for appointment in accordance with the Financial Regulator Assessment Authority Act 2021. Section 3 appoints Nicholas Moore as Chair of the Authority, again with the requirement that he is qualified for the role under the same Act. The obligations and requirements imposed by the Financial Regulator Assessment Authority Act 2021 on the parties it governs include ensuring that each member and the Chair are qualified for their respective roles. Section 24(2) of the Act provides that a person is qualified for appointment as a member if they have sufficient knowledge or experience in financial regulation, consumer protection or financial services. For the role of Chair, section 24(3) specifies that the person must have held a senior executive role in a financial services institution or have relevant experience in financial services regulation or consumer protection. The Act requires that all members and the Chair act in the public interest and in accordance with the law, and that they are committed to upholding the principles of good governance and accountability. The Financial Regulator Assessment Authority Act 2021 also includes provisions for offences, penalties, and civil and criminal consequences for breaches of the Act. Section 27 of the Act provides that a person who contravenes a provision of the Act is liable to a penalty of up to $50,000 for a first offence, and up to $100,000 for a subsequent offence. In addition, section 28 of the Act provides that a person who is found guilty of a criminal offence under the Act is liable to a fine of up to $100,000 or imprisonment for up to two years, or both. The Act also includes provisions for civil remedies, such as injunctions and damages, for breaches of the Act. It is important to note that these penalties and consequences are subject to the discretion of the court, and the maximum penalties may be exceeded in cases of serious or repeated breaches of the Act.