Reserve Bank Regulations (Amendment)

Overview

The Reserve Bank Regulations (Amendment) 1998 No. 188 was introduced to address gaps and outdated provisions within the Reserve Bank Act 1959, brought about by recent legislative changes. The primary objective of these regulations is to update the existing Reserve Bank Regulations to align with the Financial Sector Reform (Amendments and Transitional Provisions) Act 1998, which established a Payments System Board responsible for the Reserve Bank's payments system policy under the Payment Systems (Regulation) Act 1998. Additionally, the regulations seek to remove obsolete provisions due to the Audit (Transitional and Miscellaneous) Amendment Act 1997 and the Financial Laws Amendment Act 1997. Enacted by the Parliament, these amendments were designed to ensure the Reserve Bank Regulations remain current and effective in governing the Reserve Bank's operations and policies.

Scope and Application

The Reserve Bank Regulations (Amendment) 1998 No. 188 applies to the Reserve Bank of Australia and the Payments System Board, which is a new entity established under the Payment Systems (Regulation) Act 1998. These regulations amend the Reserve Bank Regulations to incorporate changes required by the Financial Sector Reform (Amendments and Transitional Provisions) Act 1998 and delete outdated provisions due to the passage of other Acts. The regulations also provide a direct reference to the schedule and replace the existing reference to a declaration of secrecy for the Reserve Bank Board to a new reference for both the Reserve Bank Board and the Payments System Board. The regulations commence on 1 July 1998 and are made under section 89 of the Reserve Bank Act 1959. The scope of the regulations is limited to the Reserve Bank and the Payments System Board and does not extend to other entities or individuals. There are no stated exclusions, exemptions, or thresholds in the regulations. However, the application of the regulations may be extended or restricted through subordinate instruments.

Key Provisions

The main operative sections of these regulations (Regulations 2 to 6) are concerned with the amendments and repeals of the Reserve Bank Regulations to incorporate changes necessitated by recent legislative changes. Regulation 2 provides that the regulations will amend the Reserve Bank Regulations, aligning them with the Financial Sector Reform (Amendments and Transitional Provisions) Act 1998, the Payment Systems (Regulation) Act 1998, the Audit (Transitional and Miscellaneous) Amendment Act 1997, and the Financial Laws Amendment Act 1997. Regulation 3 repeals the reference to a schedule that is now considered archaic, and Regulation 4 updates the declaration of secrecy requirements to cover both the Reserve Bank Board and the newly established Payments System Board. Regulation 5 removes a redundant penalty provision that was superseded by new sections in the Reserve Bank Act 1959, and Regulation 6 repeals a regulation concerning the form of financial statements, which is now governed by the Commonwealth Authorities and Companies Act 1997. These regulations impose several obligations and requirements on the Reserve Bank, its Board, and the Payments System Board. Firstly, both Boards are now required to adhere to a declaration of secrecy, ensuring the confidentiality of certain information (Regulation 4). The repeal of certain regulations also means that the Reserve Bank and its Boards no longer have to comply with outdated requirements, such as the specific form of financial statements (Regulation 6). These amendments ensure that the Reserve Bank's operations and regulatory framework are aligned with the most current legislation, facilitating the effective implementation of the Reserve Bank Act 1959 and related Acts. The regulations do not introduce new offences or penalties. However, they do repeal certain existing penalties (Regulation 5). Specifically, the repeal of Regulation 6 removes the $100 penalty for officers and others who unlawfully provide information or documents to unauthorised people. This repeal is due to the enactment of new sections in the Reserve Bank Act 1959, which likely include updated provisions for handling such breaches. The primary consequence of these regulations is the alignment of the Reserve Bank Regulations with the current legislative framework, ensuring that the Reserve Bank's operations comply with the latest legal requirements.