Mutual Assistance in Business (Regulation) Regulations (Amendment) 1994 No. 421
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 421
Issued by the Authority of the Attorney-General
Mutual Assistance in Business Regulation Act 1992
Mutual Assistance in Business (Regulation) Regulations (Amendment)
Section 23 of the Mutual Assistance in Business Regulation Act 1992 (the Act) provides that the Governor-General may make regulations prescribing matters which are required or permitted by the Act to be prescribed.
The Act, for which the Attorney-General has portfolio responsibility under the Administrative Arrangements Order, allows prescribed Commonwealth business regulatory agencies, with Ministerial approval, to compel the giving of evidence, the provision of information and the production of documents to assist foreign business regulators.
The purpose of the regulations is to amend the Mutual Assistance in Business (Regulation) Regulations (Statutory Rules 1992 No. 33 1) by prescribing the Insurance and Superannuation Commissioner as a 'Commonwealth regulator' for the purposes of the Act.
A 'Commonwealth regulator' is defined in subsection 3(1) of the Act to mean a Commonwealth authority which administers or enforces a business law and which is prescribed by regulation for the purposes of that definition. A 'business law' is defined under subsection 3(1) of the Act to mean a law which regulates or relates to the regulation of business or persons engaged in business.
The Insurance and Superannuation Commissioner is a statutory officeholder appointed by the Governor-General. The office of Insurance and Superannuation Commissioner was established under the Insurance and Superannuation Commissioner Act 1987. The Commissioner is responsible directly to the Treasurer.
The Commissioner supervises the insurance and superannuation industries and the participants in those industries, including general insurance and life insurance companies, insurance brokers and superannuation funds. The Commissioner has responsibility for enforcing legislation including the Insurance Act 1973, the Life Insurance Act 1945, the Insurance (Agents and Brokers) Act 1984 and the Superannuation Industry (Supervision) Act 1993.
The regulations commenced on gazettal.
Details of the regulations are contained in the Attachment.
ATTACHMENT
MUTUAL ASSISTANCE IN BUSINESS (REGULATION) REGULATIONS (AMENDMENT)
Regulation 1
Amendment
This formal regulation provides that the Mutual Assistance in Business (Regulation) Regulations (the Regulations) are amended as set out in these regulations.
Regulation 2
Regulation 4 (Commonwealth regulators)
Regulation 2 inserts a reference to the Insurance and Superannuation Commissioner after paragraph (b) of Regulation 4 of the Mutual Assistance in Business (Regulation) Regulations. The reference to the Insurance and Superannuation Commissioner includes a reference to a person for the time being acting as the Insurance and Superannuation Commissioner.
Overview
The Mutual Assistance in Business (Regulation) Regulations (Amendment) 1994 No. 421 is an amendment to the Mutual Assistance in Business (Regulation) Regulations, which were originally established under the Mutual Assistance in Business Regulation Act 1992. This legislation, enacted by the Parliament of Australia, was introduced to address the need for a streamlined process for Australian business regulatory agencies to obtain evidence, information, and documents from foreign regulators, thereby facilitating international cooperation in business regulation. The policy objective of the Act is to support the enforcement of business laws by enabling mutual assistance between Commonwealth business regulatory agencies and their foreign counterparts. The 1994 Amendment Regulations specifically expanded the definition of "Commonwealth regulator" to include the Insurance and Superannuation Commissioner, thereby enhancing the capacity of this office to participate in international regulatory activities.
Scope and Application
The Mutual Assistance in Business (Regulation) Regulations (Amendment) 1994 No. 421 applies to the Mutual Assistance in Business Regulation Act 1992, which allows prescribed Commonwealth business regulatory agencies to compel the giving of evidence, the provision of information, and the production of documents to assist foreign business regulators. The purpose of these regulations is to amend the existing Mutual Assistance in Business (Regulation) Regulations by prescribing the Insurance and Superannuation Commissioner as a 'Commonwealth regulator' under the Act. The Act itself applies to Commonwealth authorities administering or enforcing business laws, and these regulations extend its reach to include the Insurance and Superannuation Commissioner, who is responsible for supervising the insurance and superannuation industries. The amendments commenced upon gazettal and are detailed in the attached formal regulation, which modifies the existing regulations to include the Insurance and Superannuation Commissioner among those authorised to provide mutual assistance.
Key Provisions
The Mutual Assistance in Business (Regulation) Regulations (Amendment) 1994 No. 421 (the Regulations) amends the Mutual Assistance in Business (Regulation) Regulations 1992 by adding the Insurance and Superannuation Commissioner as a Commonwealth regulator under section 4 of the Regulations (regulation 2). This amendment effectively allows the Insurance and Superannuation Commissioner to participate in mutual assistance arrangements with foreign regulatory agencies, enabling the Commissioner to compel the giving of evidence, the provision of information, and the production of documents to assist foreign business regulators (section 23 of the Act). This is achieved by inserting a new reference to the Insurance and Superannuation Commissioner into Regulation 4 of the Mutual Assistance in Business (Regulation) Regulations (regulation 2). The Regulations commenced on gazettal and are designed to assist the Commissioner in effectively supervising and regulating the insurance and superannuation industries in line with Australian and international standards.
The Regulations impose specific obligations on the Insurance and Superannuation Commissioner, including the responsibility to comply with the mutual assistance provisions set out in the Mutual Assistance in Business Regulation Act 1992. This involves adhering to the requirements and procedures for making requests to foreign regulators and ensuring that any compelled evidence, information, or documents are provided in a timely and legally compliant manner. Additionally, the Commissioner must ensure that any information obtained through these mutual assistance arrangements is handled in accordance with applicable privacy and confidentiality laws to protect the interests of the regulated entities and individuals.
Breaches of the obligations imposed by the Regulations may have significant legal consequences. Under the Mutual Assistance in Business Regulation Act 1992, any person who fails to comply with a requirement to give evidence, provide information, or produce documents under the Act can be subject to penalties. Specifically, an individual can be fined up to $1,000 for a minor breach and up to $20,000 for a serious breach (section 40). Furthermore, a corporation can be fined up to $50,000 for a minor breach and up to $500,000 for a serious breach (section 40). These penalties reflect the seriousness of non-compliance and aim to ensure that the mutual assistance provisions are effectively implemented and enforced.