Financial Intermediaries Act 1996

This Act may be cited as the Financial Intermediaries Act 1996.

This Act (other than parts 2 and 3) commences on a day to be fixed by proclamation.

The dictionary in schedule 2 defines particular words used in this Act.

For this Act, director of a society includes a reference to—

a person (however described) occupying or acting in the position of director of the society, and whether or not validly appointed to occupy, or duly authorised to act in, the position; and

a person under whose directions or instructions the society’s directors are accustomed to act.

However, a person is not taken to be a person under whose directions or instructions a society’s directors are accustomed to act merely because the directors act on advice given by the person in the proper performance of the functions attaching to—

the person’s professional capacity; or

the person’s business relationship with the directors or the society.

For this Act, officer of a society includes—

a director, secretary, executive officer or employee of the society; and

a receiver and manager, appointed under a power contained in an instrument, of property of the society; and

a liquidator of the society appointed in a voluntary winding–up of the society; and

a trustee or other person administering a compromise or arrangement made between the society and other persons.

However, none of the following is an officer of the society—

a receiver who is not also a manager;

a receiver and manager appointed by a court;

a liquidator appointed by a court.

This Act binds the State.

However, this section does not permit the State to be prosecuted for an offence.

The registrar’s prudential and advisory functions under this Act are to—

institute, develop, and ensure the effective and efficient implementation of, a system of prudential and other standards for, and for the supervision of, societies; and

advise, and make recommendations to, the Treasurer about—

changes to this Act; or

new laws, and changes to other existing laws, about or affecting societies; and

act under part 3.

In performing the registrar’s functions and exercising the registrar’s powers under this part, the registrar must consult with the Treasurer, the Reserve Bank of Australia, industry bodies and societies if it is appropriate and practicable to consult with them.

The registrar may make standards (whether prudential or otherwise) about—

the business and affairs of societies; and

the supervision of societies by the registrar; and

any other matters about which this Act authorises or requires (whether expressly or by implication) standards to be made.

A standard takes effect from—

the day a copy of the standard is published in the gazette; or

a later day stated in the standard.

A standard may be made only if this section or section 12 is complied with.

The registrar must, not later than 60 days before the making of the standard, publish a notice in the gazette, and in a newspaper circulating generally in the State, explaining succinctly the purpose, and intended operation, of the standard.

The notice must invite—

written suggestions on the proposed standard to be given to the registrar within 30 days after publication of the gazette notice; and

written comments on the suggestions to be given to the registrar within 21 days after the end of the period of 30 days.

The registrar must—

make copies of each suggestion and comment given to the registrar available for inspection and purchase at the registrar’s public office; and

take reasonable steps to ensure that copies of each suggestion and comment given to the registrar are available for inspection and purchase at the registrar’s public office.

The registrar must comply with subsection (4) for a suggestion or comment as soon as practicable after the suggestion or comment is given.

The registrar must consider all suggestions and comments given before making the standard, and may change the proposed standard to take account of suggestions and comments.

Contravention of this section for a standard does not affect the validity of the standard.

If the registrar decides it is necessary, because of urgent circumstances, for a standard to be made without complying with section 11, the registrar may make the standard.

If the registrar makes a decision under subsection (1), the registrar must immediately publish a copy of the decision in the gazette, together with a succinct statement of the reasons for making the decision.

A standard made because of a decision under subsection (1) has effect for only—

120 days; or

a lesser period stated in the standard.

A standard may provide that its operation for a particular society may be varied by the registrar by temporarily changing a requirement of the standard as allowed under the standard.

This section does not limit by implication the power of the registrar to make standards.