Terrorism and Cyclone Insurance (Australian Reinsurance Pool Corporation Acting Chair) Appointment (No. 1) 2023

Overview

The "Terrorism and Cyclone Insurance (Australian Reinsurance Pool Corporation Acting Chair) Appointment (No. 1) 2023I" notifiable instrument, issued by Stephen Jones, the Assistant Treasurer and Minister for Financial Services, under section 14 of the Terrorism and Cyclone Insurance Act 2003, was enacted to address the need for an interim leadership role within the Australian Reinsurance Pool Corporation. This legislative instrument appoints Julie-Anne Schafer as the acting Chair of the Corporation on a part-time basis for the period beginning on 1 July 2023, continuing until the earlier of 30 September 2023 or the appointment of the next Chair as per subsection 13(1) of the Act. The instrument also establishes the remuneration and allowances for the acting Chair, aligning them with those applicable to the full-time Chair during the same period. The intent behind this legislation is to ensure continuity and stability within the Corporation during a transitional period, thereby maintaining effective governance and management in the face of potential leadership changes.

Scope and Application

The Terrorism and Cyclone Insurance Act 2003 applies to the Australian Reinsurance Pool Corporation, its members, and relevant stakeholders within the insurance industry, specifically concerning terrorism and cyclone insurance. This Act is of Commonwealth jurisdiction, impacting entities and individuals involved in the reinsurance pool and the broader insurance sector. The Act provides a legislative framework for the management of the Australian Reinsurance Pool Corporation, including the appointment of its Chair, which is detailed in the notifiable instrument F2023N00198. This particular instrument appoints Julie-Anne Schafer as the acting Chair of the Corporation on a part-time basis, effective from 1 July 2023 until 30 September 2023 or the appointment of the next Chair, whichever occurs first, and determines her remuneration and allowances during this period. The Act’s scope and application are further extended through subordinate instruments, which may include regulations or further appointments, ensuring a structured governance framework for the Corporation.

Key Provisions

The main operative sections of the notifiable instrument F2023N00198 (Notifiable instrument) are found under the Terrorism and Cyclone Insurance Act 2003. Specifically, Section 14 of the Act and subsection 33A(1) of the Acts Interpretation Act 1901, empower the Assistant Treasurer and Minister for Financial Services to appoint Julie-Anne Schafer as the acting Chair of the Australian Reinsurance Pool Corporation (ARPC). This appointment is for a part-time role, effective from 1 July 2023, and will continue until 30 September 2023 or until a new Chair is appointed under subsection 13(1) of the Act, whichever comes first. Additionally, the instrument determines that the remuneration and allowances payable to the acting Chair during this period will be the same as those applicable to the Chair of the ARPC. The obligations and requirements imposed by the Act on Julie-Anne Schafer, as the acting Chair of the ARPC, include fulfilling the duties and responsibilities associated with the position of Chair. This includes overseeing the operations of the ARPC, ensuring compliance with relevant laws and regulations, and making decisions that align with the objectives of the Corporation. Furthermore, the instrument requires the acting Chair to act in accordance with any directions or instructions given by the Assistant Treasurer and Minister for Financial Services, given the part-time nature of the appointment. Failure to comply with the provisions of the Act or the terms of the appointment may result in civil or criminal consequences. However, the specific offences, penalties, or consequences for breach are not detailed in the notifiable instrument. Generally, under Australian law, breaches of statutory duties or failure to comply with ministerial appointments can lead to various civil or criminal penalties, depending on the severity and nature of the breach. Maximum penalties for such offences can vary significantly, but they may include fines, imprisonment, or other sanctions as prescribed by the relevant legislation. It is important for Julie-Anne Schafer to adhere strictly to the terms of her appointment and the requirements of her role to avoid any potential legal repercussions.