Treasury Laws Amendment (ASIC Governance) Act 2018

Administered by Department of the Treasury

Legislation au C2018A00042 In force Act

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Treasury Laws Amendment (ASIC Governance) Act 2018

 

No. 42, 2018

 

 

 

 

 

An Act to provide for an additional Deputy Chairperson of ASIC, and for related purposes

 

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Additional Deputy Chairperson of ASIC

Australian Securities and Investments Commission Act 2001

Foreign Evidence Act 1994

 

 

 

Treasury Laws Amendment (ASIC Governance) Act 2018

No. 42, 2018

 

 

 

An Act to provide for an additional Deputy Chairperson of ASIC, and for related purposes

[Assented to 22 May 2018]

The Parliament of Australia enacts:

1  Short title

  This Act is the Treasury Laws Amendment (ASIC Governance) Act 2018.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this Act

The day after the end of the period of 14 days beginning on the day this Act receives the Royal Assent.

5 June 2018

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Additional Deputy Chairperson of ASIC

 

Australian Securities and Investments Commission Act 2001

1  Subsection 5(1) (definition of Deputy Chairperson)

Omit “the Deputy Chairperson”, substitute “a Deputy Chairperson”.

2  Section 10

Repeal the section, substitute:

10  Chairperson and Deputy Chairpersons

 (1) The Governor‑General is to appoint as Chairperson of ASIC a person who is, or is to be, a full‑time member.

 (2) The Governor‑General may appoint as a Deputy Chairperson of ASIC a person who is, or is to be, a full‑time member.

Note: For the manner in which the Chairperson and a Deputy Chairperson may be referred to, see section 18B of the Acts Interpretation Act 1901.

 (3) Not more than 2 persons may hold office as Deputy Chairperson at any one time.

3  Subsections 106(2) and (3)

Repeal the subsections, substitute:

 (2) In the absence of the Chairperson from a meeting:

 (a) if there are 2 Deputy Chairpersons available to preside at the meeting—the Chairperson may nominate one of them to preside at the meeting; or

 (b) if there is only one Deputy Chairperson available to preside at the meeting—that Deputy Chairperson is to preside at the meeting.

 (3) If neither the Chairperson nor any Deputy Chairperson is present at a meeting, the members present must elect one of their number to preside.

4  Subsection 109(1)

Omit “Chairperson or Deputy Chairperson holds”, substitute “Chairperson, or as a Deputy Chairperson, holds”.

5  Paragraph 109(1)(c)

Omit “as Deputy Chairperson”, substitute “as a Deputy Chairperson”.

6  Section 110

Omit “as Deputy Chairperson”, substitute “as a Deputy Chairperson”.

7  Paragraph 116(1)(c)

Omit “or the Deputy Chairperson) or a part‑time member, as the case may be, is absent from office, is acting as Deputy Chairperson”, substitute “or a Deputy Chairperson) or a part‑time member, as the case may be, is absent from office, is acting as a Deputy Chairperson”.

8  Section 118

Repeal the section, substitute:

118  Acting Deputy Chairperson

  The Minister may appoint a member to act as a Deputy Chairperson:

 (a) during a period when there are fewer than 2 persons holding the office of Deputy Chairperson; or

 (b) during a period when a Deputy Chairperson is absent from office or is acting as Chairperson.

9  In the appropriate position

Insert:

Part 26—Transitional provisions relating to the Treasury Laws Amendment (ASIC Governance) Act 2018

 

315  Saving of appointments

 (1) The Treasury Laws Amendment (ASIC Governance) Act 2018 does not affect an appointment of the Chairperson, a Deputy Chairperson or a member under this Act.

 (2) Subsection (1) does not prevent the termination of an appointment.

Foreign Evidence Act 1994

10  Subsection 35(1)

Omit “the Deputy Chairperson”, substitute “a Deputy Chairperson”.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 28 March 2018

Senate on 10 May 2018]

 

(62/18)

 

Overview

The Treasury Laws Amendment (ASIC Governance) Act 2018 was enacted by the Parliament of Australia to enhance the governance structure of the Australian Securities and Investments Commission (ASIC) by introducing an additional Deputy Chairperson. This Act, which received Royal Assent on 22 May 2018 and commenced on 5 June 2018, aims to improve the efficiency and effectiveness of ASIC's leadership by allowing for the appointment of up to two Deputy Chairpersons. This change is designed to ensure that ASIC can continue to operate effectively even in the absence of the Chairperson, thereby maintaining regulatory oversight and stability in the financial markets. The policy objective of this Act is to address potential governance issues that might arise from the absence of the Chairperson or a Deputy Chairperson, by providing clear procedures for the appointment and role of additional Deputy Chairpersons. This legislative amendment ensures that ASIC can maintain its regulatory functions seamlessly, reflecting a commitment to robust and resilient governance within the regulatory framework.

Scope and Application

The Treasury Laws Amendment (ASIC Governance) Act 2018 applies to the Australian Securities and Investments Commission (ASIC) by amending the Australian Securities and Investments Commission Act 2001. This amendment involves the creation of an additional Deputy Chairperson position within ASIC, which now allows for up to two Deputy Chairpersons to be appointed by the Governor-General. The Act also modifies the procedures for presiding over meetings in the absence of the Chairperson and allows the Minister to appoint a member to act as a Deputy Chairperson when necessary. This legislation is effective nationwide as it amends a Commonwealth statute, thereby impacting ASIC's governance structure across Australia. The Act came into effect on 5 June 2018, the day after the 14-day period following Royal Assent. The changes introduced by the Act do not affect existing appointments but allow for their termination as per the existing provisions of the Australian Securities and Investments Commission Act 2001.

Key Provisions

The Treasury Laws Amendment (ASIC Governance) Act 2018 (C2018A00042) amends the Australian Securities and Investments Commission Act 2001 (ASIC Act) to introduce an additional Deputy Chairperson position within the Australian Securities and Investments Commission (ASIC). Specifically, section 5 of the ASIC Act is amended to change the definition of "Deputy Chairperson" to "a Deputy Chairperson", allowing for more than one Deputy Chairperson to be appointed. Section 10 of the ASIC Act is also amended to allow for the appointment of up to two Deputy Chairpersons by the Governor-General, with provisions for presiding over meetings in the absence of the Chairperson. The Act imposes specific obligations on the parties involved, particularly the Governor-General and the Minister. The Governor-General is tasked with appointing the Chairperson and up to two Deputy Chairpersons, ensuring that the roles are filled by full-time members. The Minister, on the other hand, is granted the authority to appoint a member to act as a Deputy Chairperson during periods when there are fewer than two Deputy Chairpersons or when a Deputy Chairperson is otherwise unavailable. Additionally, the Act outlines the process for electing a presiding member when neither the Chairperson nor any Deputy Chairperson is present at a meeting. Failure to comply with the provisions of the Act can result in various consequences. While the Act does not explicitly outline offences or penalties for non-compliance, breaches of the governance and procedural requirements set forth in the ASIC Act could potentially lead to legal actions, administrative penalties, or disciplinary measures against the relevant parties. The maximum penalties for such breaches would be determined by the applicable sections of the ASIC Act or other relevant legislation.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.