Treasury Laws Amendment (APRA Governance) Act 2018

Overview

The Treasury Laws Amendment (APRA Governance) Act 2018 was enacted by the Parliament of Australia to amend the Australian Prudential Regulation Authority Act 1998, primarily to provide for the appointment of an additional Deputy Chair of the Australian Prudential Regulation Authority (APRA). The Act was assented to on 24 August 2018 and commenced on 7 September 2018. The policy objective behind this amendment was to enhance the governance structure of APRA by introducing an additional Deputy Chair, thereby ensuring that there are at least two Deputy Chairs at any given time. This addition aims to improve the efficiency and effectiveness of APRA's operations, particularly in the event of absences or vacancies. The Act makes several modifications to the Australian Prudential Regulation Authority Act 1998, including the redefinition of terms such as "APRA member" and "Deputy Chair" to accommodate the new appointment structure. It also outlines the conditions under which a Deputy Chair can be appointed, the term of office, and the procedures for presiding over APRA meetings in the absence of the Chair. Furthermore, the Act ensures that existing appointments are not affected by these changes, except where termination of an appointment is necessary.

Scope and Application

The Treasury Laws Amendment (APRA Governance) Act 2018 is a Commonwealth Act that amends the Australian Prudential Regulation Authority Act 1998 to provide for an additional Deputy Chair of the Australian Prudential Regulation Authority (APRA). This Act applies to the APRA members, the Chair, and any Deputy Chairs appointed under the Australian Prudential Regulation Authority Act 1998. It extends to all activities and functions of APRA, including its regulatory and supervisory roles in the financial sector. The Act came into effect on 7 September 2018, the day after the end of the 14-day period following Royal Assent. The Act does not affect existing appointments under the Australian Prudential Regulation Authority Act 1998 but allows for their termination. It does not specify any exclusions or exemptions and is limited to the Commonwealth jurisdiction, affecting entities and individuals operating within the scope of APRA's regulatory purview in Australia.

Key Provisions

The Treasury Laws Amendment (APRA Governance) Act 2018 (Act) primarily amends the Australian Prudential Regulation Authority Act 1998 (APRA Act) to introduce an additional Deputy Chair of the Australian Prudential Regulation Authority (APRA). Section 3 of the Act modifies the definition of 'APRA Member' in the APRA Act to include each Deputy Chair, while the definition of 'Deputy Chair' is repealed and replaced with a new definition, specifying that a Deputy Chair is an APRA member appointed in that role. The Act also replaces the existing section on the appointment of the Deputy Chair with a new section that allows for up to two Deputy Chairs to be appointed by the Governor-General. Additionally, the Act enables the Minister to appoint an APRA member to act as a Deputy Chair under certain conditions, such as when there are fewer than two Deputy Chairs available or when a Deputy Chair is unable to perform their duties. The Act imposes several obligations on the parties involved. It mandates that the Governor-General appoints the Chair and Deputy Chairs of APRA from among full-time APRA members. It also provides the Minister with the authority to appoint an APRA member to act as a Deputy Chair under specific circumstances, such as when there are fewer than two Deputy Chairs available, or when a Deputy Chair is absent or unable to perform their duties. The Act further outlines the term of office for the Chair and Deputy Chairs, specifying that their tenure ends when they cease to be APRA members or when a Deputy Chair is appointed as Chair. It also includes provisions for the presiding of APRA meetings in the absence of the Chair, stipulating that a Deputy Chair should preside if available, or an APRA member should be elected to preside if no Deputy Chair is available. The Act does not explicitly outline offences or penalties for breaches of its provisions. However, any failure to comply with the Act’s requirements could potentially lead to legal consequences under the APRA Act or other relevant legislation. For instance, improper appointment practices or the failure to adhere to the specified conditions for acting appointments could result in legal actions or administrative penalties as per the APRA Act. Additionally, misconduct or maladministration by APRA officials could lead to disciplinary actions or other consequences as outlined in the APRA Act or other applicable laws.