Life Insurance Regulations (Amendment)

Administered by Department of the Treasury

Legislation au F1997B02736 Regulations Not in force Legislative Instrument

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Life Insurance Regulations (Amendment) 1997 No. 239

EXPLANATORY STATEMENT

STATUTORY RULES 1997 NO. 239

Issued by the authority of the Assistant Treasurer

Life Insurance Act 1995

Life Insurance Regulations (Amendment)

The Life Insurance Act 1995 (the Act) and the Life Insurance Regulations (the Principal Regulations) establish a scheme of prudential supervision of the life insurance industry.

Section 253 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.

Section 251 of the Act provides for secrecy in respect of information acquired for purposes of the Act. Under the provisions of the section, information may be disclosed in certain circumstances. Since its commencement, the Act has provided for information to be disclosed to prescribed financial sector supervisory agencies and law enforcement agencies. The Financial Laws Amendment Act 1997, which commenced on 30 June 1997, amended Section 251 such that information may also be disclosed to prescribed overseas financial sector supervisory agencies.

The regulations amend the Principal Regulations to prescribe additional financial sector supervisory agencies and law enforcement agencies and prescribe overseas financial sector supervisory agencies to whom a compliance officer, pursuant to Section 251 of the Act, may disclose protected information or documents acquired in the course of performing his or her duties.

Section 251 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 - Regulation 11.02 (Definition of "financial sector supervisory agency") and 11.03 (Definition of "law enforcement agency")

This regulation omits the current regulations 11.02 and 11.03 of the Principal Regulations and inserts substitute regulations. The substitution provides for additional agencies to be prescribed under regulation to ensure consistency across all legislation administered by the Insurance and Superannuation Commission.

Section 251 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 251. These exceptions include circumstances where 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; and a law enforcement agency for the purposes of the performance of any of the agency's functions in relation to an offence against a law of the Commonwealth, of a State or of a Territory.

'Financial sector supervisory agency' is defined in subsection 251 (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 11.02 prescribes the financial sector supervisory agencies for the purposes of subsection 251 (1) of the Act.

'Law enforcement agency' is defined in subsection 251 (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 11.03 prescribes the law enforcement agencies for the purposes of subsection 251 (1) of the Act.

Regulation 11.04 (Definition of an "overseas financial sector supervisory agency")

Section 251 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 251. Paragraph 251(4)(ca) 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 251 (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 11.04 prescribes the overseas financial sector supervisory agencies for the purposes of subsection 251 (1) of the Act.

 

Overview

The Life Insurance Regulations (Amendment) 1997 No. 239 were enacted to address the need for expanded disclosure of protected information under the Life Insurance Act 1995, in response to amendments introduced by the Financial Laws Amendment Act 1997. This amendment was necessary to align the regulatory framework with the evolving financial landscape, particularly concerning the disclosure of information to both domestic and overseas financial sector supervisory agencies and law enforcement agencies. The amendments were issued under the authority of the Assistant Treasurer, ensuring they met the legislative requirements set out by the Parliament of Australia. The policy objective of these regulations is to facilitate efficient information exchange among agencies to better manage and prevent crises within financial conglomerates, thereby enhancing the oversight and regulation of the life insurance industry.

Scope and Application

The Life Insurance Regulations (Amendment) 1997 No. 239 applies to the life insurance industry, specifically targeting compliance officers under the Life Insurance Act 1995. These regulations aim to facilitate the disclosure of protected information and documents by compliance officers to prescribed financial sector supervisory agencies, law enforcement agencies, and overseas financial sector supervisory agencies. This amendment ensures that these agencies can perform their functions more effectively, particularly in crisis situations within financial conglomerates. The regulations are made under the authority of the Assistant Treasurer and apply nationally across Australia. They define the entities eligible for information disclosure, including updates to the definitions of financial sector supervisory agencies, law enforcement agencies, and overseas financial sector supervisory agencies. These definitions are prescribed through the regulations and are not subject to further alteration through subordinate instruments.

Key Provisions

The Life Insurance Regulations (Amendment) 1997 No. 239 provides several key amendments to the existing Life Insurance Regulations, primarily aimed at expanding the categories of agencies to which protected information can be disclosed. Under section 251 of the Life Insurance Act 1995, a compliance officer is generally prohibited from disclosing protected information or producing protected documents, except for certain purposes outlined in the Act or other Acts administered by the Insurance and Superannuation Commissioner. However, exceptions are made where such information may be disclosed to financial sector supervisory agencies or law enforcement agencies for the purposes of their respective functions or powers. The regulations amend the definitions of "financial sector supervisory agency" and "law enforcement agency" in Regulation 11.02 and Regulation 11.03, respectively, to include additional agencies. These amendments ensure that the categories of agencies to whom information can be disclosed are consistent across all legislation administered by the Insurance and Superannuation Commission. Additionally, Regulation 11.04 defines "overseas financial sector supervisory agency" and prescribes such agencies for the purposes of disclosing protected information or documents to them under section 251(4)(ca) of the Act. This expansion was necessitated by the Financial Laws Amendment Act 1997, which amended section 251 to allow for such disclosures. The obligations imposed on compliance officers under these regulations are primarily to ensure that they only disclose protected information or produce protected documents in accordance with the exceptions provided in section 251 of the Act. This includes adhering to the newly prescribed categories of financial sector supervisory agencies, law enforcement agencies, and overseas financial sector supervisory agencies. Compliance officers must also ensure that any disclosure is made for the purposes of the agencies' functions or powers, as stipulated in the Act. Failure to comply with the requirements of these regulations can lead to significant consequences. Under section 251(5) of the Life Insurance Act 1995, a compliance officer who discloses protected information or produces protected documents in breach of the section commits an offence. Such an offence is subject to a penalty of up to five years' imprisonment or a fine of up to $33,000, or both, as specified in section 258 of the Act. Additionally, civil and criminal penalties may apply for breaches of other provisions of the Act or related regulations, depending on the specific nature and severity of the breach.

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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.