Reserve Bank (Reserve Bank Board Member) Appointment (No. 2) 2021

Overview

The Reserve Bank (Reserve Bank Board Member) Appointment (No. 2) 2021I was enacted in 2021 to fill a vacancy on the Reserve Bank Board, specifically appointing Carol Schwartz AO as a member. The legislation was introduced to ensure the Reserve Bank continues to operate with a full complement of board members, maintaining its ability to effectively manage monetary policy and financial stability. This notifiable instrument was made by Josh Frydenberg, the Treasurer of Australia, under the authority granted by paragraph 14(d) of the Reserve Bank Act 1959. The policy objective underpinning this appointment is to uphold the integrity and functionality of the Reserve Bank's governance structure by ensuring the board is fully staffed with qualified individuals capable of contributing to the bank's strategic decisions.

Scope and Application

The Reserve Bank (Reserve Bank Board Member) Appointment (No. 2) 2021I, issued under the authority vested in the Treasurer by the Reserve Bank Act 1959, specifically appoints Carol Schwartz AO as a member of the Reserve Bank Board. This appointment is effective from 14 February 2022 and will conclude on 13 February 2027. The legislation applies directly to Carol Schwartz AO, governing her role, responsibilities, and tenure within the Reserve Bank Board. The scope of this appointment is limited to the Commonwealth jurisdiction, as it concerns the federal financial institution, the Reserve Bank of Australia. There are no stated exclusions, exemptions, or thresholds within this particular legislative instrument, though the broader application and implications of her role would be subject to the overarching provisions of the Reserve Bank Act 1959 and any relevant subordinate instruments that may extend or restrict its application.

Key Provisions

The main operative section of the Reserve Bank (Reserve Bank Board Member) Appointment (No. 2) 2021I is section 1, which appoints Carol Schwartz AO as a member of the Reserve Bank Board for a specified period, from 14 February 2022 to 13 February 2027. This section formalises the appointment and sets the term of office for the appointee. Under section 2, the instrument is given effect under paragraph 14(d) of the Reserve Bank Act 1959, providing the legal basis for the appointment. The Reserve Bank (Reserve Bank Board Member) Appointment (No. 2) 2021I imposes several obligations on the parties involved. Firstly, Carol Schwartz AO, as the appointee, must discharge the duties and responsibilities of a Reserve Bank Board member in accordance with the Reserve Bank Act 1959 and any other relevant legislation. This includes attending meetings, contributing to decision-making processes, and participating in the governance of the Reserve Bank. Additionally, the Treasurer, who is responsible for making the appointment, must ensure that the appointee meets the qualifications and criteria specified in the Reserve Bank Act 1959. Breach of the obligations set out in this instrument can lead to various consequences. Under the Reserve Bank Act 1959, any member of the Reserve Bank Board who fails to carry out their duties or acts in a manner that is not in the best interests of the Bank can be subject to disciplinary action. Such action may include removal from office. Furthermore, any party that deliberately contravenes the terms of this appointment may face civil or criminal penalties, depending on the nature and severity of the breach. The maximum penalties for such offences are not explicitly stated in this instrument but would be governed by the Reserve Bank Act 1959 and any other relevant legislation.