Insurance (Agents and Brokers) Regulations (Amendment) 1997 No. 237
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 237
Issued by the authority of the Assistant Treasurer
Insurance (Agents and Brokers) Act 1984
Insurance (Agents and Brokers) Regulations (Amendment)
The Insurance (Agents and Brokers) Act 1984 (the Act) and the Insurance (Agents and Brokers) Regulations (the Principal Regulations) provide for the efficient and fair operation of the insurance industry by ensuring appropriate standards of conduct between insurance intermediaries and consumers and ensuring that any complaints that arise are dealt with promptly and efficiently.
Section 48 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.
Section 34U of the Act provides for secrecy in respect of information acquired for purposes of the Act. The Financial Laws Amendment Act 1997, which commenced on 30 June 1997, amended Section 34U such that information may be disclosed to prescribed financial sector supervisory agencies, law enforcement agencies and overseas financial sector supervisory agencies.
The regulations amend the Principal Regulations to prescribe the financial sector supervisory agencies, law enforcement agencies and overseas financial sector supervisory agencies to whom a compliance officer, pursuant to Section 34U of the Act, may disclose protected information or documents acquired in the course of performing his or her duties.
Section 34U and the amendments to the Principal Regulations are aimed at facilitating the ability of the Insurance and Superannuation Commission to act quickly to exchange information to prevent and/or manage a crisis situation within financial conglomerates.
The regulations are described in detail in the attachment.
ATTACHMENT
Regulation 1 - Amendment
Regulation 1 is explanatory, and includes a note that these regulations commence. on gazettal.
Regulation 2 - New Regulations 15, 16 and 17
Regulation 2 inserts three new regulations, 15, 16 and 17 into the Principal Regulations, for the purposes of Section 34U of the Act.
Regulation 15 - Financial sector supervisory agency
Section 34U of the Act generally prohibits a compliance officer from disclosing protected information or producing protected documents, other than for the purposes of the Act or any other Act administered by the Insurance and Superannuation Commissioner, that have been acquired by the compliance officer in the course of performing his or her duties as a compliance officer.
Certain exceptions to this general rule are provided for in section 34U. Paragraph 34U(4)(c) provides that protected information may be disclosed, or protected documents produced, to a financial sector supervisory agency for the purposes of the performance of any of the agency's functions or the exercise of any of its powers.
'Financial sector supervisory agency' is defined in subsection 34U(1) of the Act as meaning 'a person or body declared by the regulations to be a financial sector supervisory agency for the purposes of this section'.
Regulation 15 prescribes the financial sector supervisory agencies for the purposes of subsection 34U(1) of the Act.
Regulation 16 - Law enforcement agency
Section 34U of the Act generally prohibits a compliance officer from disclosing protected information or producing protected documents, other than for the purposes of the Act or any other Act administered by the Insurance and Superannuation Commissioner, that have been acquired by the compliance officer in the course of performing his or her duties as a compliance officer.
Certain exceptions to this general rule are provided for in section 34U. Paragraph 34U(5)(a) and subsection 34U(6) provide that protected information may be disclosed, or protected documents produced, to a law enforcement agency for the purposes of the performance by the agency of its functions in relation to an offence or alleged offence against a law of the Commonwealth, of a State or of a Territory.
'Law enforcement agency' is defined in subsection 34U(1) of the Act as meaning "a person or body declared by the regulations to be a law enforcement agency for the purposes of this section'.
Regulation 16 prescribes the law enforcement agencies for the purposes of subsection 34U(1) of the Act.
Regulation 17 - Overseas financial sector supervisory agency
Section 34U of the Act generally prohibits a compliance officer from disclosing protected information or producing protected documents, other than for the purposes of the Act or any other Act administered by the Insurance and Superannuation Commissioner, that have been acquired by the compliance, officer in the course of performing his or her duties as a compliance officer.
Certain exceptions to this general rule are provided for in section 34U. Paragraph 34U(4)(d) provides that protected information may be disclosed, or protected documents produced, to an overseas financial sector supervisory agency for the purposes of the performance of any of the agency's functions or the exercise of any of its powers.
'Overseas financial sector supervisory agency' is defined in subsection 34U(1) of the Act as meaning 'a person or body declared by the regulations to be an overseas financial sector supervisory agency for the purposes of this section'.
Regulation 17 prescribes the overseas financial sector supervisory agencies for the purposes of subsection 34U(1) of the Act.