Commonwealth of Australia Explanatory Memoranda

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FINANCIAL SECTOR REFORM BILL 2022

                                         2022



       THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                                       SENATE




                    FINANCIAL SECTOR REFORM BILL 2022




             SUPPLEMENTARY EXPLANATORY MEMORANDUM



    AMENDMENTS TO BE MOVED ON BEHALF OF THE GOVERNMENT




(Circulated by authority of the Assistant Treasurer and Minister for Financial Services,
                              the Hon Stephen Jones MP)
Table of Contents
Glossary................................................................................................. iii
General outline and financial impact ...................................................... 1
                         Financial services compensation scheme of last resort
                         - Parliamentary Amendments ..................................... 3
                         Statement of Compatibility with Human Rights ............ 5
Glossary
This Supplementary Explanatory Memorandum uses the following abbreviations and
acronyms.

 Abbreviation                           Definition

 Bill                                   Financial Sector Reform Bill 2022

 CSLR                                   Compensation Scheme of Last Resort
                                                       Financial Sector Reform Bill 2022

General outline and financial impact

Financial services compensation scheme of last
resort - Parliamentary Amendments

Outline
The Parliamentary amendments to the Bill facilitate the removal of the financial
services CSLR from the Bill. The policy intention for this change is to enable the
Government to consult further on the implementation of the scheme without holding up
the other measures in the Bill.

Date of effect

None.

Financial impact

The financial impacts of establishing the CSLR were outlined in the original
Explanatory Memorandum to the Bill.

Human rights implications

The Parliamentary amendments do not raise any human rights issues. See Statement of
Compatibility with Human Rights -- Chapter 2.




                                                                                      1
               Financial services
compensation scheme of last resort -
Parliamentary Amendments

Outline of chapter
1.1   The Parliamentary amendments to the Bill remove the framework for the
      CSLR.


Detailed explanation of amendments
1.2   Amendment 1 amends the title, so it no longer refers to establishing the CSLR.
      [Amendment 1]
1.3   Amendment 2 removes table item 5 from clause 2 to the Bill, so it no longer
      includes commencement information for the CSLR.
      [Amendment 2]
1.4   Amendment 3 removes Schedule 3 to the Bill. Schedule 3 to the Bill would
      have made amendments to the Corporations Act 2001, Australian Securities
      and Investments Commission Act 2001 and the National Consumer Credit
      Protection Act 2009 to facilitate the CSLR framework.
      [Amendment 3]




                                                                                    3
               Statement of
Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.

Financial Sector Reform Bill 2022


Overview
2.1    The Parliamentary amendments are compatible with the human rights and
       freedoms recognised or declared in the international instruments listed in
       section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
2.2    The amendments facilitate the removal of the CSLR framework from the Bill.


Human rights implications
2.3    The Parliamentary amendments do not engage any of the applicable rights or
       freedoms.


Conclusion
2.4    The Parliamentary amendments are compatible with human rights as it does
       not raise any human rights issues.
2.5    The Bill as amended is compatible with human rights as provided for in the
       Explanatory Memorandum to the Bill.




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