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FINANCIAL INSTITUTIONS LEGISLATION AMENDMENT BILL 1994

        Queensland




FINANCIAL INSTITUTIONS
     LEGISLATION
  AMENDMENT BILL 1994

 


 

Queensland FINANCIAL INSTITUTIONS LEGISLATION AMENDMENT BILL 1994 TABLE OF PROVISIONS Section Page PART 1--PRELIMINARY 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 PART 2--AMENDMENT OF FINANCIAL INSTITUTIONS (QUEENSLAND) ACT 1992 3 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4 Omission of s 29 (Penalty Units Act does not apply) . . . . . . . . . . . . . . . . . . 8 PART 3--AMENDMENT OF FINANCIAL INSTITUTIONS CODE 5 Code amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 6 Amendment of s 3 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 7 Amendment of s 4 (Interpretation--meaning of "associate") . . . . . . . . . . . 10 8 Amendment of s 71 (Public office of SSA and inspection of documents) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 9 Amendment of s 76 (Obtaining evidence) . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 10 Amendment of s 90 (Appointment of administrator) . . . . . . . . . . . . . . . . . . 11 11 Amendment of s 97 (Credit Unions Contingency Fund) . . . . . . . . . . . . . . . 11 12 Insertion of new s 98A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 98A Refunds of contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 Amendment of s 103 (Payment out of Credit Unions Contingency Fund) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 14 Insertion of new Sdiv 6A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Subdivision 6A--Contingency fund agreements 105A SSA may enter into contingency fund agreement . . . . . . . . . . . . . . . 13 105B Restrictions on entering into contingency fund agreement . . . . . . . 13

 


 

2 Financial Institutions Legislation Amendment 105C Things for inclusion in contingency fund agreement . . . . . . . . . . . . 14 105D Consequences of entering into contingency fund agreement . . . . . . 14 15 Amendment of s 119 (Acquisition of shares in services corporation) . . . . . 19 16 Amendment of s 131 (Members) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 17 Amendment of s 134 (Corporate membership) . . . . . . . . . . . . . . . . . . . . . . . 20 18 Amendment of s 138 (Financial accommodation to, and deposits from, members and others) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 19 Insertion of new s 138A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 138A Dormant accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 20 Amendment of s 139 (Name) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 21 Replacement of s 140 (Society must have certain words as part of name) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 140 Abbreviations etc. of society's name . . . . . . . . . . . . . . . . . . . . . . . . . 22 22 Omission of ss 142 and 143 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 23 Amendment of s 144 (Use of words `building society', `credit society', `credit union' or `credit co-operative') . . . . . . . . . . . . . . . . . . . . . . 23 24 Amendment of s 145 (Publication of name) . . . . . . . . . . . . . . . . . . . . . . . . . 23 25 Amendment of s 146 (Seal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 26 Amendment of s 147 (Registered office) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 27 Amendment of s 155 (Power to make certain payments) . . . . . . . . . . . . . . 24 28 Amendment of s 161 (Charge on withdrawable shares or deposit account) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 29 Amendment of s 172 (Calls and effect of non-compliance with calls on permanent shares) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 30 Amendment of s 179 (Exceptions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 31 Amendment of s 195 (Exceptions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 32 Amendment of s 238 (Qualifications of directors) . . . . . . . . . . . . . . . . . . . . 26 33 Amendment of s 239 (Vacation of office) . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 34 Insertion of new s 239A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 239A Removal of directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 35 Amendment of s 240 (Declaration of interest) . . . . . . . . . . . . . . . . . . . . . . . 28 36 Amendment of s 241 (General duty to make disclosure) . . . . . . . . . . . . . . . 28 37 Replacement of s 242 (Certain dealings prohibited) . . . . . . . . . . . . . . . . . . 29 242 Certain financial accommodation to officers prohibited . . . . . . . . . 29

 


 

3 Financial Institutions Legislation Amendment 38 Amendment of s 243 (Financial accommodation to directors and associates) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 39 Amendment of s 253 (Voting) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 40 Replacement of s 254 (Proxy votes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 254 Proxy votes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 41 Amendment of s 255 (Special resolutions) . . . . . . . . . . . . . . . . . . . . . . . . . . 32 42 Amendment of s 258 (Register of directors etc.) . . . . . . . . . . . . . . . . . . . . . 33 43 Amendment of s 274 (Directors' reports) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 44 Insertion of new Pt 7, Div 1A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Division 1A--Preliminary 291A Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 45 Replacement of s 295 (Certificate confirming transfer of engagements between societies of the same type) . . . . . . . . . . . . . . . . . . . . 35 295 Certificate of confirmation (voluntary transfer) . . . . . . . . . . . . . . . . 35 46 Amendment of s 296 (SSA may direct a transfer of engagements between societies of the same type) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 47 Replacement of s 298 (Day on which transfer of engagements takes effect) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 298 Certificate of confirmation (transfer by direction) . . . . . . . . . . . . . . 36 298A Who receives the certificate of confirmation . . . . . . . . . . . . . . . . . . 37 298B When transfer of engagements takes effect . . . . . . . . . . . . . . . . . . . . 37 298C Cancellation of registration after total transfer . . . . . . . . . . . . . . . . . 37 48 Replacement of s 299 (Effect of merger) . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 299 Effect of merger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 49 Replacement of s 300 (Effect of transfer of engagements) . . . . . . . . . . . . . 38 300 Effect of transfer of engagements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 50 Insertion of new s 302A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 302A Cancellation of building society's permanent shares . . . . . . . . . . . . 39 51 Replacement of s 304 (Certificate confirming transfer of engagements between societies of different types) . . . . . . . . . . . . . . . . . . . 39 304 Certificate of confirmation (voluntary transfer) . . . . . . . . . . . . . . . . 39 52 Amendment of s 305 (SSA may direct a transfer of engagements between societies of different types) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 53 Replacement of s 307 (Day on which transfer of engagements takes effect) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

 


 

4 Financial Institutions Legislation Amendment 307 Certificate of confirmation (transfer by direction) . . . . . . . . . . . . . . 41 307A Who receives the certificate of confirmation . . . . . . . . . . . . . . . . . . 41 307B When transfer of engagements takes effect . . . . . . . . . . . . . . . . . . . . 41 307C Cancellation of registration after total transfer . . . . . . . . . . . . . . . . . 41 54 Replacement of s 313 (Certificate confirming transfer of engagements to society) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 313 Certificate of confirmation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 313A Who receives the certificate of confirmation . . . . . . . . . . . . . . . . . . 42 313B When transfer of engagements takes effect . . . . . . . . . . . . . . . . . . . . 42 55 Replacement of s 314 (Effect of merger) . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 314 Effect of merger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 56 Replacement of s 315 (Effect of transfer of engagements) . . . . . . . . . . . . . 43 315 Effect of transfer of engagements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 57 Amendment of s 320 (Proposal to convert building society to be approved by members) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 58 Amendment of s 341 (Winding-up on certificate of SSA) . . . . . . . . . . . . . 44 59 Amendment of s 348 (Appointment of investigators) . . . . . . . . . . . . . . . . . . 45 60 Amendment of s 350 (Powers of investigators) . . . . . . . . . . . . . . . . . . . . . . . 45 61 Amendment of s 364 (Registration) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 62 Amendment of s 383 (Certificates etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 63 Amendment of s 402 (Financial bodies to comply with standards) . . . . . . 46 64 Replacement of s 411 (Powers in relation to money of members who have died or become of unsound mind) . . . . . . . . . . . . . . . . . . . . . . . . . 46 411 Powers about money of members who have died . . . . . . . . . . . . . . . 46 65 Omission of s 431 (Society must offer membership in certain circumstances) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 66 Replacement of s 433 (Providing financial accommodation to a person who is not a member) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 433 Providing financial accommodation to, or accepting deposits from, non-members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 67 Amendment of Sch 2 (Matters to be provided for in rules of credit union) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 PART 4--AMENDMENT OF AUSTRALIAN FINANCIAL INSTITUTIONS COMMISSION ACT 1992 68 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

 


 

5 Financial Institutions Legislation Amendment 69 Omission of s 17 (Jurisdiction conferred on Supreme Court) . . . . . . . . . . . . 49 70 Omission of s 19 (Penalty Units Act does not apply) . . . . . . . . . . . . . . . . . . 49 PART 5--AMENDMENT OF AUSTRALIAN FINANCIAL INSTITUTIONS COMMISSION CODE 71 Code amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 72 Amendment of s 40 (Application of Financial Institutions Code) . . . . . . . . 49 73 Amendment of s 46 (Provision of liquidity support) . . . . . . . . . . . . . . . . . . . 50 74 Insertion of new Pt 6A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 PART 6A--NAMES 47A Reference to registration of financial institution's name . . . . . . . . . 50 47B Financial institution must have certain words as part of name . . . . 50 47C Reservation of names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 47D Extension of reservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 47E End of reservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 47F AFIC may direct change of name etc. . . . . . . . . . . . . . . . . . . . . . . . . 52 75 Amendment of s 52 (Obtaining evidence) . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 76 Amendment of s 63 (Proceedings for offences) . . . . . . . . . . . . . . . . . . . . . . 53 77 Amendment of s 96 (Appeals to Supreme Court of Queensland from decisions of Appeals Tribunal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 78 Amendment of s 97 (Operation and implementation of a decision subject to appeal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 79 Amendment of s 98 (Reference of questions of law to Supreme Court of Queensland) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 80 Amendment of s 99 (Costs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 81 Amendment of s 100 (Protection of members) . . . . . . . . . . . . . . . . . . . . . . . 55

 


 

 

1994 A BILL FOR An Act to amend the Financial Institutions (Queensland) Act 1992, the Financial Institutions Code, the Australian Financial Institutions Commission Act 1992 and the Australian Financial Institutions Commission Code

 


 

s1 8 s4 Financial Institutions Legislation Amendment The Parliament of Queensland enacts-- 1 PART 1--PRELIMINARY 2 title 3 Short 1. This Act may be cited as the Financial Institutions Legislation 4 Amendment Act 1994. 5 6 Commencement 2. This Act commences on a day to be fixed by proclamation. 7 PART 2--AMENDMENT OF FINANCIAL 8 INSTITUTIONS (QUEENSLAND) ACT 1992 9 amended 10 Act 3. This Part amends the Financial Institutions (Queensland) Act 1992. 11 of s 29 (Penalty Units Act does not apply) 12 Omission 4. Section 29-- 13 omit. 14

 


 

s5 9 s6 Financial Institutions Legislation Amendment PART 3--AMENDMENT OF FINANCIAL 1 INSTITUTIONS CODE 2 amended 3 Code 5. This Part amends the Financial Institutions Code set out in section 30 4 of the Financial Institutions (Queensland) Act 1992. 5 of s 3 (Definitions) 6 Amendment 6.(1) Section 3 (definitions "residential building" and "residential 7 development")-- 8 omit. 9 (2) Section 3-- 10 insert-- 11 ` "certificate of confirmation" has the meaning given by section 291A 12 (Definitions); 13 "national business names register" has the meaning given by the 14 Corporations Law; 15 "residential building" means a building occupied, or to be occupied, by a 16 person as the person's principal place of residence, whether as owner, 17 under a lease or tenancy agreement or otherwise, and-- 18 (a) includes a building declared by regulation to be a residential 19 building for the purposes of this Code; but 20 (b) does not include-- 21 (i) a building that is not situated within Australia; or 22 (ii) a building declared by regulation not to be a residential 23 building for the purposes of this Code; 24 "residential development" means-- 25 (a) construction or improvement of a residential building; or 26 (b) conversion of a building to a residential building; or 27

 


 

s7 10 s8 Financial Institutions Legislation Amendment (c) improvement of land if-- 1 (i) a residential building is situated or being constructed on the 2 land; and 3 (ii) the improvement is of a type normally associated with land 4 containing a residential building; or 5 (d) acquisition of land for a purpose mentioned in paragraph (a), (b) 6 or (c);'. 7 "transferee society" has the meaning given by section 291A (Definitions); 8 "transferor society" has the meaning given by section 291A 9 (Definitions);'. 10 of s 4 (Interpretation--meaning of "associate") 11 Amendment 7. Section 4, from `For the' to `if--'-- 12 omit, insert-- 13 `(1) This section applies for the purposes of this Code other than the 14 following provisions-- 15 Part 5, Division 5 (Shareholding restrictions) 16 section 243 (Financial accommodation to directors and 17 associates) 18 `(2) A person is an "associate" of another, or is associated with another, 19 if--'. 20 of s 71 (Public office of SSA and inspection of 21 Amendment documents) 22 8. Section 71(3)(a)(ii)-- 23 omit `or given to', insert `, created by or otherwise held by'. 24

 


 

s9 11 s 11 Financial Institutions Legislation Amendment of s 76 (Obtaining evidence) 1 Amendment 9. Section 76(6)-- 2 omit, insert-- 3 `(6) The SSA may authorise an employee for the purpose of 4 subsection (1)(a) only if the person has, in the SSA's opinion, the 5 appropriate expertise for the purpose (whether because of training or 6 otherwise).'. 7 of s 90 (Appointment of administrator) 8 Amendment 10.(1) Section 90(1)-- 9 omit `may appoint', insert `may, by written notice, appoint'. 10 (2) Section 90(1)-- 11 omit `may revoke any such', insert `may, by written notice, revoke the'. 12 (3) Section 90-- 13 insert-- 14 `(1A) A notice of appointment must specify-- 15 (a) the date of appointment; and 16 (b) the appointee's name; and 17 (c) the appointee's business address. 18 `(1B) If the appointee's name or business address changes, the appointee 19 must immediately give written notice of the change to the SSA.'. 20 of s 97 (Credit Unions Contingency Fund) 21 Amendment 11.(1) Section 97(3)(b)-- 22 omit `Credit Unions Contingency'. 23 (2) Section 97(3)(c) and (d)-- 24 omit, insert-- 25 `(c) amounts paid into the Fund under Subdivision 6A (Contingency 26 fund agreements); and 27

 


 

s 12 12 s 13 Financial Institutions Legislation Amendment (d) interest and other income gained from the investment of amounts 1 standing to the credit of the Fund; and 2 (e) all other amounts lawfully paid into the Fund.'. 3 of new s 98A 4 Insertion 12. After section 98-- 5 insert-- 6 of contributions 7 `Refunds `98A.(1) In this section-- 8 "current balance" of a credit union means the amount standing to the 9 credit union's credit in the Credit Unions Contingency Fund; 10 "required balance" of a credit union means the amount the credit union 11 would be required to pay to the Credit Unions Contingency Fund 12 under section 98 (Contributions by credit unions) if its current balance 13 were nil. 14 `(2) If, immediately after the SSA makes a determination under 15 section 98, a credit union's current balance is more than its required balance, 16 the SSA must-- 17 (a) refund the excess amount to the credit union; or 18 (b) apply the excess amount for the credit union's benefit in some 19 other way (for example, by deducting the amount from a future 20 contribution required to be paid by the credit union to the Credit 21 Unions Contingency Fund).'. 22 of s 103 (Payment out of Credit Unions Contingency 23 Amendment Fund) 24 13. Section 103(1)-- 25 insert-- 26 `(h) amounts payable under section 98A (Refunds of contributions); 27 and 28

 


 

s 14 13 s 14 Financial Institutions Legislation Amendment (i) amounts payable from the Credit Unions Contingency Fund 1 under Subdivision 6A (Contingency fund agreements).'. 2 of new Sdiv 6A 3 Insertion 14. After section 105-- 4 insert-- 5 6A--Contingency fund agreements 6 `Subdivision may enter into contingency fund agreement 7 `SSA `105A.(1) The SSA may enter into an agreement for the purpose of this 8 Subdivision (a "contingency fund agreement") with the SSA of another 9 participating State (the "other SSA"). 10 `(2) Under the agreement the SSA must agree with the other SSA that 11 one of them is to be the receiving SSA and the other is to be the transferring 12 SSA. 13 `(3) Section 105C (Things for inclusion in contingency fund agreement) 14 deals with matters that-- 15 (a) must be included in the agreement; and 16 (b) may be included in the agreement. 17 `(4) The consequences of the SSA being a party to the agreement, 18 whether as the receiving SSA or the transferring SSA, are specified in 19 section 105D (Consequences of entering into contingency fund agreement), 20 which has effect despite anything in the agreement. 21 `(5) This section is subject to section 105B (Restrictions on entering into 22 contingency fund agreement). 23 on entering into contingency fund agreement 24 `Restrictions `105B. The SSA may enter into a contingency fund agreement only if-- 25 (a) the agreement is not to take effect while it is a party to another 26 contingency fund agreement; and 27

 


 

s 14 14 s 14 Financial Institutions Legislation Amendment (b) the State (the "receiving State") of the SSA that is to be the 1 receiving SSA does not have less credit unions under its financial 2 institutions legislation than the State (the "transferring State") 3 of the SSA that is to be the transferring SSA has under its 4 financial institutions legislation; and 5 (c) the number of credit unions under the financial institutions 6 legislation of the transferring State is not more than the number 7 prescribed by regulation; and 8 (d) the Minister has approved the SSA entering into the agreement. 9 for inclusion in contingency fund agreement 10 `Things `105C.(1) A contingency fund agreement must include provision for the 11 identification at any time of how much of the receiving State's Credit 12 Unions Contingency Fund (the "receiving fund") is attributable to each 13 SSA. 14 `(2) The agreement may include provisions for-- 15 (a) terms under which either SSA may end the agreement; and 16 (b) the application of section 105D(7) (Consequences of entering into 17 contingency fund agreement) including the extent to which, 18 despite section 98(10) (Contributions by credit unions), a 19 contribution paid to the receiving fund under section 98 is to be 20 treated as a deferred asset in the accounts of a credit union under 21 the financial institutions legislation of the transferring State; and 22 (c) the conditions under which the receiving SSA may direct that 23 interest and other income gained from the investment of amounts 24 standing to the credit of the receiving fund may be paid to the 25 receiving SSA. 26 of entering into contingency fund agreement 27 `Consequences `105D.(1) In this section-- 28 "corresponding provision" to a specified provision of this Code, means 29 the provision of the financial institutions legislation of the other 30 participating State corresponding to the specified provision; 31

 


 

s 14 15 s 14 Financial Institutions Legislation Amendment "other participating State" means the participating State whose SSA is a 1 party to a contingency fund agreement with the SSA. 2 `(2) When the contingency fund agreement starts, the transferring SSA 3 must pay the amount in the transferring State's Credit Unions Contingency 4 Fund (the "transferring fund") to the receiving fund. 5 `(3) While the agreement is in force, interest and other income gained, 6 before the agreement started, from the investment of money standing to the 7 credit of the transferring fund is taken to be interest and other income gained 8 from the investment of money standing to the credit of the receiving fund. 9 `(4) While the agreement is in force-- 10 (a) the provisions of this Code listed in subsection (5) or their 11 corresponding provisions-- 12 (i) if they are provisions of the financial institutions legislation 13 of the transferring State--have no effect; and 14 (ii) if they are provisions of the financial institutions legislation 15 of the receiving State-- 16 (A) have effect; and 17 (B) apply so that a reference to a credit union that would, 18 apart from this section, be a reference to a credit union 19 under the financial institutions legislation of the 20 receiving State (a "receiving State credit union") 21 includes a reference to a credit union under the financial 22 institutions legislation of the transferring State (a 23 "transferring State credit union"); and 24 (C) apply so that a reference to a building society that 25 would, apart from this section, be a reference to a 26 building society under the financial institutions 27 legislation of the receiving State includes a reference to 28 a building society under the financial institutions 29 legislation of the transferring State; and 30 (b) section 317(3) (SSA may direct payment out of the fund) or its 31 corresponding provision applies so that, if the credit union 32 merging, or transferring the whole of its engagements, is a 33

 


 

s 14 16 s 14 Financial Institutions Legislation Amendment transferring State credit union, the reference in the subsection to 1 another participating State includes a reference to the receiving 2 State. 3 4 Example 1-- 5 If this State is the transferring State, the provisions of this Code listed in 6 subsection (5) have no effect while the contingency fund agreement is in force, but 7 the provisions of the financial institutions legislation of the receiving State 8 corresponding to the provisions of this Code listed in subsection (5) apply to credit 9 unions under this Code as well as to credit unions under the financial institutions 10 legislation of the receiving State. 11 Example 2-- 12 If this State is the receiving State, the provisions of this Code listed in 13 subsection (5) have effect while the contingency fund agreement is in force, and 14 apply to credit unions under the financial institutions legislation of the transferring 15 State as well as to credit unions under this Code. `(5) The provisions are-- 16 section 74 (Execution of guarantees) 17 section 97 (Credit Unions Contingency Fund) 18 section 98 (Contributions by credit unions) 19 section 98A (Refunds of contributions) 20 section 99 (Support levy) 21 section 100 (Compulsory loans) 22 section 102 (Investment of Credit Unions Contingency Fund) 23 section 103 (Payment out of Credit Unions Contingency Fund) 24 section 104 (Payment from Credit Unions Contingency Fund on 25 liquidation etc.) 26 section 105 (SSA may direct payment of grant or loan from 27 fund) 28 section 317 (SSA may direct payment out of fund). 29 `(6) While the agreement is in force-- 30 (a) the transferring fund continues to exist, despite subsection (4)(a); 31 and 32

 


 

s 14 17 s 14 Financial Institutions Legislation Amendment (b) the transferring SSA must pay to the receiving fund all amounts 1 paid to the transferring fund. 2 `(7) In performing its functions and exercising its powers under 3 section 98(1) and (2) or their corresponding provisions, the receiving SSA 4 may make, subject to the agreement, a determination for the transferring 5 State credit unions that is different from the determination it makes for the 6 receiving State credit unions. 7 `(8) While the agreement is in force-- 8 (a) debts that, immediately before the agreement started were, under 9 section 98(8) or its corresponding provision, due and payable by 10 a transferring State credit union to the transferring SSA are debts 11 due and payable by the credit union to the receiving SSA under 12 section 98(8) or its corresponding provision; and 13 (b) the reference to a court in section 98(8) or its corresponding 14 provision includes a reference to a court having jurisdiction in the 15 transferring State. 16 `(9) If the SSA is the transferring SSA, and default is made by a credit 17 union in making a payment it must make under a provision corresponding 18 to section 98, 99 or 100, the default is, for the purpose of section 101 19 (Failure to make payment an offence), taken to be a default in making a 20 payment required to be made under section 98, 99 or 100 and for that 21 purpose those sections are taken to have been effective. 22 `(10) While the agreement is in force, an amount needed to discharge a 23 liability of the transferring SSA under a guarantee that would, apart from 24 the agreement, have been paid out of the transferring fund must be paid out 25 of the receiving fund. 26 `(11) If while the agreement is in force the receiving SSA directs, under 27 section 103A (Payment of administration levy and supervision levy out of 28 Credit Unions Contingency Fund) or its corresponding provision, the 29 payment to itself of an amount of interest and other income (the "receiving 30 SSA's payment"), it must pay from the receiving fund to the transferring 31 SSA an amount of interest and other income worked out under 32 subsection (12) (the "transferring SSA's payment"). 33

 


 

s 14 18 s 14 Financial Institutions Legislation Amendment `(12) The transferring SSA's payment is worked out by using the 1 following formula-- 2 A= B x C 3 D 4 `(13) In subsection (12)-- 5 "A" means the transferring SSA's payment; 6 "B" means the receiving SSA's payment; 7 "C" means the amount of the receiving fund that under the agreement is 8 attributable to the transferring SSA; 9 "D" means the amount of the receiving fund that under the agreement is 10 attributable to the receiving SSA. 11 `(14) The transferring SSA must apply the transferring SSA's payment 12 as if it were an amount directed to be paid to it under section 103A or its 13 corresponding provision. 14 `(15) However, if the transferring SSA's payment is more than is needed 15 to offset the whole liability mentioned in section 103A or its corresponding 16 provision, it must pay back the excess amount to the receiving fund. 17 `(16) If the transferring SSA pays back an excess amount under 18 subsection (15), the amount retains its identity as interest and other income 19 gained from the investment of money standing to the credit of the receiving 20 fund. 21 `(17) While the agreement is in force-- 22 (a) a loan made to a transferring State credit union under section 105 23 (SSA may direct payment of grant or loan from fund) or its 24 corresponding provision before the agreement started is taken to 25 have been made by the receiving SSA from the receiving fund; 26 and 27 (b) the terms of the loan may be administered and enforced by the 28 receiving SSA. 29 `(18) When the agreement stops being in force, debts that, while the 30 agreement was in force, were under section 98(8) or its corresponding 31 provision due and payable by a transferring State credit union to the 32

 


 

s 15 19 s 16 Financial Institutions Legislation Amendment receiving SSA become debts due and payable by the credit union to the 1 transferring SSA under section 98(8) or its corresponding provision. 2 `(19) When the agreement stops being in force-- 3 (a) a loan made under section 105 or its corresponding provision to a 4 transferring State credit union while the agreement was in force is 5 taken to be a loan made by the transferring SSA from the 6 transferring fund; and 7 (b) the terms of the loan may be administered and enforced by the 8 transferring SSA. 9 `(20) When the agreement stops being in force, the receiving SSA must 10 pay to the transferring fund, out of the receiving fund, the amount of the 11 receiving fund that under the agreement is attributable to the transferring 12 SSA.'. 13 of s 119 (Acquisition of shares in services corporation) 14 Amendment 15.(1) Section 119(1) (after `provides')-- 15 insert `or proposes to provide'. 16 (2) Section 119(11)-- 17 omit `subsection (2)', insert `subsection (3)'. 18 of s 131 (Members) 19 Amendment 16. Section 131(6)-- 20 omit, insert-- 21 `(6) A person may exercise the rights of membership of a society only if 22 the person has complied with any requirements for membership under the 23 society's rules, including, for example-- 24 (a) the payment of an amount; or 25 (b) the acquisition of shares or interests.'. 26

 


 

s 17 20 s 18 Financial Institutions Legislation Amendment of s 134 (Corporate membership) 1 Amendment 17. Section 134(3)(b)-- 2 omit, insert-- 3 `(b) is eligible to be elected as a director of the society if-- 4 (i) the body corporate holds the qualifications required for 5 holding office as a director (other than qualifications about 6 age and being an individual); and 7 (ii) a person has not been appointed as liquidator of the body 8 corporate.'. 9 of s 138 (Financial accommodation to, and deposits 10 Amendment from, members and others) 11 18.(1) Section 138(3) to (4)-- 12 omit, insert-- 13 `(3) A society must not provide financial accommodation to a person 14 who is not a member of the society. 15 Maximum penalty--$5 000. 16 `(4) Subsection (3) is subject to section 433 (Providing financial 17 accommodation to, or accepting deposits from, non-members). 18 `(5) A society must not accept a deposit of money from a person who is 19 not a member of the society other than-- 20 (a) from an unincorporated body of persons, up to an amount 21 decided by the SSA; or 22 (b) under a standard authorising acceptance of the deposit. 23 Maximum penalty--$5 000.'. 24 (2) Section 138(5)-- 25 renumber as subsection (6). 26

 


 

s 19 21 s 19 Financial Institutions Legislation Amendment of new s 138A 1 Insertion 19. After section 138 (in Part 4, Division 4)-- 2 insert-- 3 accounts 4 `Dormant `138A.(1) In this section-- 5 "transaction", in a person's deposit account with a society, means a debit 6 or credit to the account, other than for-- 7 (a) the payment of interest by the society; or 8 (b) the charging of a fee by the society for keeping the account. 9 `(2) A society may classify a person's deposit account as a dormant 10 account if-- 11 (a) there have been no transactions in the account for at least 1 year; 12 and 13 (b) the society has given to the person a written notice stating that, 14 unless the person gives to the society a written notice within 15 1 month stating that the person wishes the account to remain 16 open, the society intends to close the account; and 17 (c) the society does not receive a written notice from the person 18 under paragraph (b). 19 `(3) A society may cancel a person's membership of the society if the 20 person's only account with the society is a dormant account. 21 `(4) A society may transfer the amount held in a dormant account to 22 another account (the "suspense account"). 23 `(5) The society may charge a person a fee for keeping an amount for the 24 person in the suspense account, but the fee must not be more than the lesser 25 of-- 26 (a) the amount held for the person in the suspense account; or 27 (b) the amount prescribed by regulation. 28 `(6) This section is subject to any law of this State about unclaimed 29 money.'. 30

 


 

s 20 22 s 21 Financial Institutions Legislation Amendment of s 139 (Name) 1 Amendment 20.(1) Section 139(2)-- 2 omit, insert-- 3 `(2) The SSA may register a proposed society's rules, or an alteration of 4 rules affecting a society's name, only if AFIC has reserved the name for the 5 proposed society or society under Part 6A of the AFIC Code.'. 6 (2) Section 139-- 7 insert-- 8 `(5A) The SSA may give an approval under subsection (5) only if the 9 name the society wishes to use is reserved for the society by AFIC under 10 Part 6A of the AFIC Code.'. 11 (3) Section 139-- 12 insert-- 13 `(7A) A society does not contravene subsection (7) by using a name in a 14 way mentioned in section 140(1) (Abbreviations etc. of society's name).'. 15 of s 140 (Society must have certain words as part of 16 Replacement name) 17 21. Section 140-- 18 omit, insert-- 19 etc. of society's name 20 `Abbreviations `140.(1) A description of a society is not inadequate or incorrect merely 21 because the society's name is given using-- 22 (a) the abbreviation `Co-op.' for the word `Co-operative'; or 23 (b) the abbreviation `Ltd.' for the word `Limited'; or 24 (c) the abbreviation `Aust.' for the word `Australian'; or 25 (d) the abbreviation `No.' for the word `Number'; or 26 (e) the symbol `&' for the word `and'; or 27 (f) any of those words instead of the corresponding abbreviation or 28 symbol. 29

 


 

s 22 23 s 25 Financial Institutions Legislation Amendment `(2) In this section-- 1 "name" of a society means-- 2 (a) its registered name; or 3 (b) a name approved for its use under section 139(5) (Name).'. 4 of ss 142 and 143 5 Omission 22. Sections 142 and 143-- 6 omit. 7 of s 144 (Use of words `building society', `credit society', 8 Amendment `credit union' or `credit co-operative') 9 23. Section 144(2)(a) (after `other words')-- 10 insert `, abbreviations or symbols'. 11 of s 145 (Publication of name) 12 Amendment 24.(1) Section 145(1)(a)-- 13 omit. 14 (2) Section 145(1)(b)-- 15 omit `official'. 16 (3) Section 145(1)(b) and (c)-- 17 renumber as section 145(1)(a) and (b). 18 of s 146 (Seal) 19 Amendment 25.(1) Section 146-- 20 renumber as section 146(2). 21

 


 

s 26 24 s 28 Financial Institutions Legislation Amendment (2) Section 146-- 1 insert-- 2 `146.(1) A society must ensure its registered name appears in legible 3 letters on its seal.'. 4 of s 147 (Registered office) 5 Amendment 26. Section 147(4)-- 6 omit `On registration by the SSA of the new address or on', 7 insert `At the end of the day of registration by the SSA of the new 8 address or at the end of,'. 9 of s 155 (Power to make certain payments) 10 Amendment 27. Section 155(2)-- 11 omit, insert-- 12 `(2) The total amount of payments by a society by way of brokerage or 13 commission for shares must not be more than the lesser of the following 14 amounts-- 15 (a) 10% of the total amount payable on allotment of the shares; 16 (b) if the society's rules specify an amount, or a rate for calculating 17 an amount, for the purpose--the amount specified or calculated in 18 accordance with the specified rate.'. 19 of s 161 (Charge on withdrawable shares or deposit 20 Amendment account) 21 28.(1) Section 161(1)-- 22 omit. 23 (2) Section 161(2)-- 24 omit, insert-- 25 `(2) A society must inform a person-- 26 (a) at the time when the person takes up withdrawable shares in, or 27

 


 

s 29 25 s 30 Financial Institutions Legislation Amendment places money on deposit with, the society; and 1 (b) at least once a year after that time; 2 that the society may charge the person's shares or the credit balance of the 3 person's deposit account for any debt owed by the person to the society.'. 4 (3) Section 161(3)-- 5 omit `member', insert `person'. 6 (4) Section 161(3)(a)-- 7 omit `member's', insert `person's'. 8 (5) Section 161-- 9 insert-- 10 `(6) This section applies to an unincorporated body of persons that 11 deposits money with a society in the same way that it applies to a person.'. 12 of s 172 (Calls and effect of non-compliance with calls on 13 Amendment permanent shares) 14 29. Section 172(3)-- 15 omit, insert-- 16 `(3) If a call on a share is not paid on or before the day for its payment, 17 the shareholder is not entitled-- 18 (a) to any dividend declared on the share, or interest that otherwise 19 would accrue on the share, after the day for payment and before 20 the day the call is paid; or 21 (b) while the call remains unpaid--to a vote for the share in any 22 meeting of members of the building society.'. 23 of s 179 (Exceptions) 24 Amendment 30. Section 179(3)(b)-- 25 omit, insert-- 26 `(b) the giving by a building society of financial assistance to acquire 27 fully paid permanent shares in the society, if-- 28

 


 

s 31 26 s 33 Financial Institutions Legislation Amendment (i) the assistance is given under a scheme approved-- 1 (A) if the scheme is conducted only for employees of the 2 society--by the society at a general meeting; or 3 (B) in any other case--by the SSA in accordance with a 4 standard; and 5 (ii) the shares are to be held by or for the benefit of a person 6 taking part in the scheme.'. 7 of s 195 (Exceptions) 8 Amendment 31. Section 195(c) (before `the person had')-- 9 insert `if'. 10 of s 238 (Qualifications of directors) 11 Amendment 32.(1) Section 238(b)-- 12 omit, insert-- 13 `(b) is not-- 14 (i) a member of the society; or 15 (ii) the representative, appointed under section 134 (Corporate 16 membership), of a body corporate member of the society; 17 or'. 18 (2) Section 238(e) (after `Law')-- 19 insert `for a reason other than the person's age'. 20 of s 239 (Vacation of office) 21 Amendment 33.(1) Section 239(1)-- 22 omit, insert-- 23 `239.(1) The office of a director becomes vacant if the director-- 24 (a) dies; or 25

 


 

s 34 27 s 34 Financial Institutions Legislation Amendment (b) becomes a person who, under section 238 (Qualifications of 1 directors), is not eligible to be a director; or 2 (c) for a director who is the representative, appointed under 3 section 134 (Corporate membership), of a body corporate 4 member of the society and whose eligibility for election to the 5 office was based on being that representative--ceases to be 6 eligible under section 134; or 7 (d) for a director elected under section 235 (Employee 8 directors)--ceases to be an employee of the society; or 9 (e) is absent from 3 consecutive ordinary meetings of the board 10 without its leave; or 11 (f) resigns by written notice of resignation given to the board; or 12 (g) is 3 months in arrears for an amount payable to the society and 13 has failed to make arrangements for payment satisfactory to the 14 society; or 15 (h) is removed from office by a resolution under section 239A 16 (Removal of directors); or 17 (i) completes a term of office and is not reappointed or re-elected.'. 18 (2) Section 239(2)-- 19 omit `(j)', insert `(h)'. 20 of new s 239A 21 Insertion 34. After section 239-- 22 insert-- 23 of directors 24 `Removal `239A.(1) A society may, by resolution, remove a director before the end 25 of the director's term of office, despite anything in its rules or in any 26 agreement between it and the director. 27 `(2) The resolution may be passed only if the society has given notice to 28 members specifying the proposed resolution and the day and time of the 29 meeting when it is proposed the resolution will be made (the "relevant 30 meeting"). 31

 


 

s 35 28 s 36 Financial Institutions Legislation Amendment `(3) The society must also give a copy of the notice to the director. 1 `(4) A society's rules may provide for-- 2 (a) the period of notice; and 3 (b) the way notice may be given to members; and 4 (c) any other relevant matter. 5 `(5) The director may make written representations to the society (of a 6 reasonable length) before the relevant meeting. 7 `(6) The society must promptly send to each member a copy of any 8 written representations made by the director if-- 9 (a) the director asks the society to do so; and 10 (b) there is enough time for the copies to be received by the members 11 at least 2 days before the relevant meeting. 12 `(7) At the relevant meeting, the director-- 13 (a) is entitled to be heard on the resolution to remove the director; and 14 (b) if the director has made written representations under 15 subsection (5) and a copy has not been sent to members under 16 subsection (6)--may require that the representations be read out.'. 17 of s 240 (Declaration of interest) 18 Amendment 35. Section 240-- 19 insert-- 20 `(1A) Subsection (1) does not apply to a contract to provide financial 21 accommodation if the provision of the financial accommodation does not 22 contravene section 243 (Financial accommodation to directors and 23 associates).'. 24 of s 241 (General duty to make disclosure) 25 Amendment 36. Section 241(2)(a)(ii)-- 26 omit `, or an associate,'. 27

 


 

s 37 29 s 38 Financial Institutions Legislation Amendment of s 242 (Certain dealings prohibited) 1 Replacement 37. Section 242-- 2 omit, insert-- 3 financial accommodation to officers prohibited 4 `Certain `242.(1) An officer of a society who is not a director of the society must 5 not obtain financial accommodation from the society other than-- 6 (a) with the approval of a majority of the directors; or 7 (b) under a scheme about providing financial accommodation to 8 officers that has been approved by a majority of the directors. 9 Maximum penalty--$50 000 or imprisonment for 7 years. 10 `(2) For the purposes of this section, financial accommodation is taken to 11 be obtained by an officer of a society if it is obtained by-- 12 (a) a proprietary company in which the officer is a shareholder or 13 director; or 14 (b) a trust of which the officer is a trustee or beneficiary; or 15 (c) a trust of which a body corporate is trustee if the officer is a 16 director or other officer of the body corporate. 17 `(3) A society must not give financial accommodation to an officer of the 18 society if-- 19 (a) by giving the financial accommodation, the officer would 20 contravene this section; and 21 (b) the society knows or should reasonably know of the 22 contravention. 23 Maximum penalty--$50 000.'. 24 of s 243 (Financial accommodation to directors and 25 Amendment associates) 26 38.(1) Section 243(1) to (3)-- 27 omit, insert-- 28

 


 

s 38 30 s 38 Financial Institutions Legislation Amendment `243.(1) In this section-- 1 "associate" of a director means-- 2 (a) the director's spouse; or 3 (b) a person when acting in the capacity of trustee of a trust under 4 which-- 5 (i) the director or director's spouse has a beneficial interest; or 6 (ii) a body corporate mentioned in paragraph (c) has a beneficial 7 interest; or 8 (c) a body corporate if-- 9 (i) the director or director's spouse has a material interest in 10 shares in the body corporate; and 11 (ii) the nominal value of the shares is not less than 10% of the 12 nominal value of the issued share capital of the body 13 corporate. 14 `(1A) For the purposes of this section, a person has a "material 15 interest" in a share in a body corporate if-- 16 (a) the person has power to withdraw the share capital subscribed for 17 the share or to exercise control over the withdrawal of that share 18 capital; or 19 (b) the person has power to dispose of or to exercise control over the 20 disposal of the share; or 21 (c) the person has power to exercise or to control the exercise of any 22 right to vote conferred on the holder of the share. 23 `(2) A society must not provide financial accommodation to a director, or 24 to a person the society knows or should reasonably know is an associate of 25 a director, unless-- 26 (a) the accommodation is-- 27 (i) approved under subsection (3); or 28 (ii) given under a scheme approved under subsection (3); or 29 (iii) provided on terms no more favourable to the director or 30 associate than the terms on which it is reasonable to expect 31

 


 

s 39 31 s 39 Financial Institutions Legislation Amendment the society would give if dealing with the director or 1 associate at arm's length in the same circumstances; and 2 (b) the directors have approved the accommodation, at a meeting of 3 the board at which a quorum was present, by a majority of at least 4 two-thirds of the directors present and voting on the matter. 5 Maximum penalty--$50 000. 6 `(3) For the purposes of subsection (2)(a)(i) and (ii), financial 7 accommodation or a scheme is approved if-- 8 (a) it is approved by a resolution passed at a general meeting; and 9 (b) full details of the accommodation or scheme were made available 10 to members at least 21 days before the meeting.'. 11 (2) Section 243(4)-- 12 omit `from a society that the society has no power to provide', 13 insert `given in contravention of subsection (2)'. 14 of s 253 (Voting) 15 Amendment 39. Section 253(4)-- 16 omit, insert-- 17 `(4) A society's rules may provide that a member's entitlement to vote 18 may not be exercised, or a member's entitlement to receive notices of 19 meetings may be suspended, if-- 20 (a) the member does not have, or did not have at a certain time, or 21 has not had for a certain period, a specified minimum amount 22 of-- 23 (i) paid-up share capital; or 24 (ii) deposits; or 25 (iii) deposits of a particular class; or 26 (b) the member has, or had at a certain time, any unpaid calls on a 27 share. 28

 


 

s 40 32 s 41 Financial Institutions Legislation Amendment 1 Example-- 2 The rules may provide that a member may vote at a meeting only if the member 3 has paid all outstanding calls on the member's shares by 4.00 p.m. on the day 14 days 4 before the meeting is to be held. `(4A) Subsection (4) is subject to section 172(3)(b) (Calls and effect of 5 non-compliance with calls on permanent shares).'. 6 of s 254 (Proxy votes) 7 Replacement 40. Section 254-- 8 omit, insert-- 9 votes 10 `Proxy `254.(1) The rules of a society may provide for-- 11 (a) whether proxy voting is allowed at a meeting of the society; and 12 (b) the use of a proxy that specifies the way the member giving the 13 proxy wishes the vote to be exercised; and 14 (c) whether a person who is not a member may be appointed as 15 proxy for a member. 16 `(2) At a meeting of a society, a person may not act as proxy for more 17 than 10 members. 18 `(3) Subsection (1) does not limit section 122 (Rules).'. 19 of s 255 (Special resolutions) 20 Amendment 41. Section 255-- 21 insert-- 22 `(5A) However, the failure by a member to receive notice of a proposed 23 special resolution does not invalidate the passing of the resolution.'. 24

 


 

s 42 33 s 43 Financial Institutions Legislation Amendment of s 258 (Register of directors etc.) 1 Amendment 42. Section 258(3)(c)-- 2 omit, insert-- 3 `(c) securities issued by the society in which the director has a relevant 4 interest, and the nature and extent of the interest; and'. 5 of s 274 (Directors' reports) 6 Amendment 43.(1) Section 274(1)(a)-- 7 omit `giving, in relation to each of the directors, particulars of', 8 insert `specifying for each director'. 9 (2) Section 274(1)(a)(ii)-- 10 omit, insert-- 11 `(ii) the number, type and class of any securities for which the 12 society is required to keep particulars, for the director, under 13 section 258 (Register of directors etc.); and'. 14 (3) Section 274(1)-- 15 insert-- 16 `(ab)stating that-- 17 (i) the society keeps a register under section 258 containing 18 information about the directors, including details of each 19 director's interests in securities issued by the society; and 20 (ii) the register is open for inspection-- 21 (A) by any member of the society, without fee; and 22 (B) by any other person, on payment of the amount (if any) 23 prescribed by the society's rules; and'. 24 (4) Section 274(2)(a)-- 25 omit `giving, in relation to each of the directors, particulars of', 26 insert `specifying for each director'. 27

 


 

s 44 34 s 44 Financial Institutions Legislation Amendment (5) Section 274(2)(a)(ii)-- 1 omit, insert-- 2 `(ii) the number, type and class of any securities for which the 3 society is required to keep particulars, for the director, under 4 section 258 (Register of directors etc.); and'. 5 (6) Section 274(2)-- 6 insert-- 7 `(ab)stating that-- 8 (i) the society keeps a register under section 258 containing 9 information about the directors, including details of each 10 director's interests in securities issued by the society; and 11 (ii) the register is open for inspection-- 12 (A) by any member of the society, without fee; and 13 (B) by any other person, on payment of the amount (if any) 14 prescribed by the society's rules; and'. 15 (7) Section 274(8)-- 16 insert-- 17 `(c) the provision of financial accommodation to a director that-- 18 (i) does not contravene section 243 (Financial accommodation 19 to directors and associates); and 20 (ii) is shown in the society's accounts in accordance with 21 applicable accounting standards.'. 22 of new Pt 7, Div 1A 23 Insertion 44. Before Part 7, Division 1-- 24 insert-- 25

 


 

s 45 35 s 45 Financial Institutions Legislation Amendment 1A--Preliminary 1 `Division 2 `Definitions `291A. In this Part-- 3 "certificate of confirmation" means a certificate given by the SSA to 4 confirm a transfer of engagements; 5 "transferee society" means a society to whom another society is to 6 transfer, or has transferred, its engagements under this Part; 7 "transferor society" means a society that is to transfer, or has transferred, 8 its engagements under this Part.'. 9 of s 295 (Certificate confirming transfer of engagements 10 Replacement between societies of the same type) 11 45. Section 295-- 12 omit, insert-- 13 of confirmation (voluntary transfer) 14 `Certificate `295.(1) This section applies to a transfer of engagements following an 15 application under section 293 (Application for registration of merger or 16 transfer of engagements between societies of the same type). 17 `(2) For a total transfer of engagements, the SSA must issue a certificate 18 of confirmation if it is satisfied that-- 19 (a) the societies have complied with section 293; and 20 (b) the rules, or proposed rules, of the transferee society are adequate; 21 and 22 (c) the certificate of incorporation of the transferor society has been-- 23 (i) surrendered to the SSA; or 24 (ii) lost or destroyed; and 25 (d) there is no good reason why the transfer should not take effect. 26 `(3) For a partial transfer of engagements, the SSA must issue a 27 certificate of confirmation if it is satisfied that-- 28

 


 

s 46 36 s 47 Financial Institutions Legislation Amendment (a) the societies have complied with section 293; and 1 (b) the rules, or proposed rules, of the societies are adequate; and 2 (c) there is no good reason why the transfer should not take effect.'. 3 of s 296 (SSA may direct a transfer of engagements 4 Amendment between societies of the same type) 5 46.(1) Section 296(1)(after `type')-- 6 insert `(the "transferee society")'. 7 (2) Section 296(1)-- 8 omit `other society', insert `transferee society'. 9 (3) Section 296(2)-- 10 omit `other society', insert `transferee society'. 11 (4) Section 296-- 12 insert-- 13 `(2A) For a total transfer of engagements, the direction must specify that 14 the transferor society must surrender its certificate of incorporation to the 15 SSA or satisfy the SSA that its certificate has been lost or destroyed.'. 16 of s 298 (Day on which transfer of engagements takes 17 Replacement effect) 18 47. Section 298-- 19 omit, insert-- 20 of confirmation (transfer by direction) 21 `Certificate `298.(1) This section applies to a transfer of engagements by a direction 22 under section 296 (SSA may direct a transfer of engagements between 23 societies of the same type). 24 `(2) If the transfer takes effect immediately, the direction must be 25 accompanied by a certificate of confirmation. 26

 


 

s 48 37 s 48 Financial Institutions Legislation Amendment `(3) If the transfer does not take effect immediately-- 1 (a) the direction must specify the day when the SSA proposes to 2 issue the certificate of confirmation; and 3 (b) when the SSA is satisfied that the societies have complied with 4 the direction, it must issue a certificate of confirmation. 5 receives the certificate of confirmation 6 `Who `298A. The SSA must give a certificate of confirmation-- 7 (a) for a partial transfer--to each of the societies; or 8 (b) for a total transfer--to the transferee society. 9 transfer of engagements takes effect 10 `When `298B. A transfer of engagements takes effect on the issue of the 11 certificate of confirmation of the transfer. 12 of registration after total transfer 13 `Cancellation `298C. When a total transfer of engagements takes effect, the SSA must 14 cancel the transferor society's registration.'. 15 of s 299 (Effect of merger) 16 Replacement 48. Section 299-- 17 omit, insert-- 18 of merger 19 `Effect `299.(1) This section applies on a merger of societies under this Division 20 taking effect. 21 `(2) The merged society is the successor of the merging societies. 22 `(3) Without limiting subsection (2)-- 23 (a) the members of each merging society become members of the 24 merged society; and 25

 


 

s 49 38 s 49 Financial Institutions Legislation Amendment (b) all assets and liabilities of each merging society become assets 1 and liabilities of the merged society without any conveyance, 2 transfer or assignment; and 3 (c) in all documents (including, for example, a contract to which a 4 merging society was a party), a reference to a merging society is a 5 reference to the merged society; and 6 (d) a legal proceeding by or against a merging society that is not 7 finished when the merger takes effect may be continued and 8 finished by or against the merged society; and 9 (e) the duties, obligations, immunities, rights and privileges applying 10 to a merging society apply to the merged society.'. 11 of s 300 (Effect of transfer of engagements) 12 Replacement 49. Section 300-- 13 omit, insert-- 14 of transfer of engagements 15 `Effect `300.(1) This section applies on a transfer of engagements under this 16 Division taking effect. 17 `(2) However, for a partial transfer, this section applies-- 18 (a) subject to the terms on which the transfer takes place; and 19 (b) only to the extent necessary to give effect to the transfer. 20 `(3) The transferee society is the successor of the transferor society. 21 `(4) Without limiting subsection (3)-- 22 (a) the members of the transferor society become members of the 23 transferee society; and 24 (b) all assets and liabilities of the transferor society become assets 25 and liabilities of the transferee society without any conveyance, 26 transfer or assignment; and 27 (c) in all documents (including, for example, a contract to which the 28 transferor society was a party), a reference to the transferor 29 society is a reference to the transferee society; and 30

 


 

s 52 39 s 53 Financial Institutions Legislation Amendment (d) a legal proceeding by or against the transferor society that is not 1 finished when the merger takes effect may be continued and 2 finished by or against the transferee society; and 3 (e) the duties, obligations, immunities, rights and privileges applying 4 to the transferor society apply to the transferee society.'. 5 of new s 302A 6 Insertion 50. After section 302-- 7 insert-- 8 of building society's permanent shares 9 `Cancellation `302A. A building society must cancel its permanent shares before-- 10 (a) merging with a credit union to operate as a credit union; or 11 (b) totally transferring its engagements to a credit union.'. 12 of s 304 (Certificate confirming transfer of engagements 13 Replacement between societies of different types) 14 51. Section 304-- 15 omit, insert-- 16 of confirmation (voluntary transfer) 17 `Certificate `304.(1) This section applies to a transfer of engagements following an 18 application under section 302 (Application for registration of merger or 19 transfer of engagements between societies of different types). 20 `(2) For a total transfer of engagements, the SSA must issue a certificate 21 of confirmation if it is satisfied that-- 22 (a) the societies have complied with section 302; and 23 (b) the rules, or proposed rules, of the transferee society are adequate; 24 and 25 (c) the certificate of incorporation of the transferor society has been-- 26 (i) surrendered to the SSA; or 27 (ii) lost or destroyed; and 28

 


 

s 54 40 s 54 Financial Institutions Legislation Amendment (d) there is no good reason why the transfer should not take effect. 1 `(3) For a partial transfer of engagements, the SSA must issue a 2 certificate of confirmation if it is satisfied that-- 3 (a) the societies have complied with section 302; and 4 (b) the rules, or proposed rules, of the societies are adequate; and 5 (c) there is no good reason why the transfer should not take effect.'. 6 of s 305 (SSA may direct a transfer of engagements 7 Amendment between societies of different types) 8 52.(1) Section 305(1) (after `type')-- 9 insert `(the "transferee society")'. 10 (2) Section 305(1)-- 11 omit `other society', insert `transferee society'. 12 (3) Section 305(2)-- 13 omit `other society', insert `transferee society'. 14 (3) Section 305-- 15 insert-- 16 `(2A) For a total transfer of engagements, the direction must specify that 17 the transferor society must surrender its certificate of incorporation to the 18 SSA or satisfy the SSA that its certificate has been lost or destroyed.'. 19 of s 307 (Day on which transfer of engagements takes 20 Replacement effect) 21 53. Section 307-- 22 omit, insert-- 23 of confirmation (transfer by direction) 24 `Certificate `307.(1) This section applies to a transfer of engagements by a direction 25 under section 305 (SSA may direct a transfer of engagements between 26 societies of different types). 27 `(2) If the transfer takes effect immediately, the direction must be 28

 


 

s 55 41 s 55 Financial Institutions Legislation Amendment accompanied by a certificate of confirmation. 1 `(3) If the transfer does not take effect immediately-- 2 (a) the direction must specify the day when the SSA proposes to 3 issue the certificate of confirmation; and 4 (b) when the SSA is satisfied that the societies have complied with 5 the direction, it must issue a certificate of confirmation. 6 receives the certificate of confirmation 7 `Who `307A. The SSA must give a certificate of confirmation-- 8 (a) for a partial transfer--to each of the societies; or 9 (b) for a total transfer--to the transferee society. 10 transfer of engagements takes effect 11 `When `307B. A transfer of engagements takes effect on the issue of the 12 certificate of confirmation of the transfer. 13 of registration after total transfer 14 `Cancellation `307C. When a total transfer of engagements takes effect, the SSA must 15 cancel the transferor society's registration.'. 16 of s 313 (Certificate confirming transfer of engagements 17 Replacement to society) 18 54. Section 313-- 19 omit, insert-- 20 of confirmation 21 `Certificate `313.(1) This section applies to a transfer of engagements following an 22 application under section 311 (Application for registration of merger or 23 transfer of engagements between society and foreign society). 24 `(2) The SSA must issue a certificate of confirmation if it is satisfied 25 that-- 26

 


 

s 56 42 s 56 Financial Institutions Legislation Amendment (a) the society and foreign society have complied with section 311; 1 and 2 (b) the rules, or proposed rules, of the transferee society are adequate; 3 and 4 (c) for a total transfer of engagements-- 5 (i) the certificate of incorporation of the foreign society has been 6 surrendered to the SSA of the participating State in which it 7 is incorporated; or 8 (ii) the foreign society has satisfied the SSA of the participating 9 State that its certificate of incorporation has been lost or 10 destroyed; and 11 (d) there is no good reason why the transfer should not take effect. 12 receives the certificate of confirmation 13 `Who `313A. The SSA must give a certificate of confirmation-- 14 (a) for a partial transfer--to each of the societies; or 15 (b) for a total transfer--to the transferee society. 16 transfer of engagements takes effect 17 `When `313B. A transfer of engagements takes effect on the issue of the 18 certificate of confirmation of the transfer.'. 19 of s 314 (Effect of merger) 20 Replacement 55. Section 314-- 21 omit, insert-- 22 of merger 23 `Effect `314.(1) This section applies on a merger of a society and a foreign 24 society under this Division taking effect. 25 `(2) The merged society is the successor of the merging societies. 26 `(3) Without limiting subsection (2)-- 27

 


 

s 57 43 s 58 Financial Institutions Legislation Amendment (a) the members of each merging society become members of the 1 merged society; and 2 (b) all assets and liabilities of each merging society become assets 3 and liabilities of the merged society without any conveyance, 4 transfer or assignment; and 5 (c) in all documents (including, for example, a contract to which a 6 merging society was a party), a reference to a merging society is a 7 reference to the merged society; and 8 (d) a legal proceeding by or against a merging society that is not 9 finished when the merger takes effect may be continued and 10 finished by or against the merged society; and 11 (e) the duties, obligations, immunities, rights and privileges applying 12 to a merging society apply to the merged society.'. 13 of s 315 (Effect of transfer of engagements) 14 Replacement 56. Section 315-- 15 omit, insert-- 16 of transfer of engagements 17 `Effect `315.(1) This section applies on a total transfer of engagements under 18 this Division taking effect. 19 `(2) However, for a partial transfer, this section applies-- 20 (a) subject to the terms on which the transfer takes place; and 21 (b) only to the extent necessary to give effect to the transfer. 22 `(3) The transferee society is the successor of the foreign society. 23 `(4) Without limiting subsection (3)-- 24 (a) the members of the foreign society become members of the 25 transferee society; and 26 (b) all assets and liabilities of the foreign society become assets and 27 liabilities of the transferee society without any conveyance, 28 transfer or assignment; and 29 (c) in all documents (including, for example, a contract to which the 30

 


 

s 59 44 s 62 Financial Institutions Legislation Amendment foreign society was a party), a reference to the foreign society is a 1 reference to the transferee society; and 2 (d) a legal proceeding by or against the foreign society that is not 3 finished when the merger takes effect may be continued and 4 finished by or against the transferee society; and 5 (e) the duties, obligations, immunities, rights and privileges applying 6 to the foreign society apply to the transferee society.'. 7 of s 320 (Proposal to convert building society to be 8 Amendment approved by members) 9 57. Section 320(3)(c)-- 10 omit `financial year up to that day', 11 insert `period to which the profit and loss account relates'. 12 of s 341 (Winding-up on certificate of SSA) 13 Amendment 58. Section 341(5)-- 14 omit, insert-- 15 `(5) The liquidator, unless employed in the SSA's office-- 16 (a) must give the security prescribed by regulation; and 17 (b) is entitled to receive an amount of remuneration that the SSA 18 considers appropriate, having regard to the rate of payment that 19 normally would apply for such an appointment.'. 20 of s 348 (Appointment of investigators) 21 Amendment 59. Section 348(2)-- 22 omit, insert-- 23 `(2) The SSA may appoint a person as investigator only if the person 24 has, in the SSA's opinion, the appropriate expertise for the position 25 (whether because of training or otherwise).'. 26

 


 

s 63 45 s 64 Financial Institutions Legislation Amendment of s 350 (Powers of investigators) 1 Amendment 60. Section 350(1), all words before `this Part'-- 2 omit, insert-- 3 `350.(1) An investigator may, by giving written notice to an officer of a 4 society the affairs of which are being investigated under this Part, require 5 the officer--'. 6 of s 364 (Registration) 7 Amendment 61.(1) Section 364(4)-- 8 omit `is not such as is likely to be confused with the name of a body 9 corporate or a registered business name', 10 insert `has been reserved by AFIC for the society for the purpose under 11 Part 6A of the AFIC Code'. 12 (2) Section 364(5)-- 13 omit. 14 of s 383 (Certificates etc.) 15 Amendment 62. Section 383(3)-- 16 omit, insert-- 17 `(3) A copy of, or extract from, a document lodged with, created by or 18 otherwise held by the SSA, and certified to be a true copy or extract under 19 the SSA's seal-- 20 (a) is as admissible in a proceeding as the original document; and 21 (b) has the same validity in evidence as the original document or the 22 extracted part of the original document.'. 23 of s 402 (Financial bodies to comply with standards) 24 Amendment 63. Section 402-- 25 insert-- 26 `(2) If a society contravenes a standard about industry funded liquidity 27

 


 

s 65 46 s 66 Financial Institutions Legislation Amendment support arrangements for societies, any officer of the society who is in 1 default commits an offence. 2 Maximum penalty--$25 000.'. 3 of s 411 (Powers in relation to money of members who 4 Replacement have died or become of unsound mind) 5 64.(1) Section 411-- 6 omit, insert-- 7 about money of members who have died 8 `Powers `411.(1) If a member of a society dies, the society may, without 9 production of probate of the will or letters of administration of the estate, 10 apply an amount held by the society that was deposited or paid up on a 11 withdrawable share by the deceased person-- 12 (a) in payment of the deceased person's funeral expenses or debts; or 13 (b) in payment to the executor of the deceased person's will; or 14 (c) in payment to anyone else who is, in the society's opinion, 15 entitled to the amount, having regard to the laws of probate and 16 accepted practice for the administration of deceased estates. 17 `(2) No action lies against a society for-- 18 (a) applying an amount under subsection (1) that is not more than the 19 amount prescribed by regulation; or 20 (b) failing to act under subsection (1).'. 21 of s 431 (Society must offer membership in certain 22 Omission circumstances) 23 65. Section 431-- 24 omit. 25 of s 433 (Providing financial accommodation to a person 26 Replacement who is not a member) 27 66. Section 433-- 28

 


 

s 67 47 s 67 Financial Institutions Legislation Amendment omit, insert-- 1 financial accommodation to, or accepting deposits from, 2 `Providing non-members 3 `433.(1) In this section-- 4 "existing non-member" of a continuing society means a person who is not 5 a member of the society and-- 6 (a) who has a loan or other financial accommodation from the 7 society that was provided before 1 July 1994; or 8 (b) who has a deposit account with the society that was opened 9 before 1 July 1994; 10 "relevant continuing society" means a continuing society that, 11 immediately before 1 July 1992, was authorised to provide financial 12 accommodation to, or accept money on deposit from, a person who 13 was not a member of the society. 14 `(2) Despite section 138(3) (Financial accommodation to, and deposits 15 from, members and others)-- 16 (a) if financial accommodation was validly provided before 1 July 17 1992 by a relevant continuing society to an existing non-member, 18 the continued provision of the accommodation is taken to be, and 19 always to have been, authorised if otherwise provided in 20 accordance with this Code; and 21 (b) if a deposit account was validly opened with a relevant continuing 22 society by an existing non-member before 1 July 1992, the 23 continued operation of the account is taken to be, and always to 24 have been, authorised if otherwise operated in accordance with 25 this Code; and 26 (c) financial accommodation provided after 30 June 1992 and before 27 1 July 1994 by a relevant continuing society to an existing 28 non-member-- 29 (i) is taken to be, and always to have been, authorised if the 30 financial accommodation was otherwise provided in 31 accordance with this Code; and 32 (ii) may continue to be provided to the existing non-member; 33 and 34

 


 

s 68 48 s 72 Financial Institutions Legislation Amendment (d) a deposit account with the society that was opened by an existing 1 non-member after 30 June 1992 and before 1 July 1994-- 2 (i) is taken to be, and always to have been, authorised if the 3 account was otherwise operated in accordance with this 4 Code; and 5 (ii) may continue to be operated. 6 `(3) Subsection (2) does not authorise a society to-- 7 (a) provide further financial accommodation to an existing 8 non-member; or 9 (b) open a new deposit account for an existing non-member; or 10 (c) materially alter the terms on which the society is continuing to 11 provide financial accommodation to an existing non-member; or 12 (d) materially alter the terms on which an existing non-member's 13 deposit account continues to be operated.'. 14 of Sch 2 (Matters to be provided for in rules of credit 15 Amendment union) 16 67. Schedule 2 (heading)-- 17 omit `UNION', insert `UNIONS'. 18 ART 4--AMENDMENT OF AUSTRALIAN 19 P FINANCIAL INSTITUTIONS COMMISSION ACT 20 1992 21 amended 22 Act 68. This Part amends the Australian Financial Institutions Commission 23 Act 1992. 24

 


 

s 73 49 s 74 Financial Institutions Legislation Amendment of s 17 (Jurisdiction conferred on Supreme Court) 1 Omission 69. Section 17-- 2 omit. 3 of s 19 (Penalty Units Act does not apply) 4 Omission 70. Section 19-- 5 omit. 6 ART 5--AMENDMENT OF AUSTRALIAN 7 P FINANCIAL INSTITUTIONS COMMISSION CODE 8 amended 9 Code 71. This Part amends the AFIC Code set out in section 21 of the 10 Australian Financial Institutions Commission Act 1992. 11 of s 40 (Application of Financial Institutions Code) 12 Amendment 72. Section 40 (after `to a special services provider')-- 13 insert `and to AFIC'. 14 of s 46 (Provision of liquidity support) 15 Amendment 73. Section 46(7) (after `with a')-- 16 insert `direction or'. 17 of new Pt 6A 18 Insertion 74. After Part 6-- 19 insert-- 20 ART 6A--NAMES 21 `P

 


 

s 74 50 s 74 Financial Institutions Legislation Amendment to registration of financial institution's name 1 `Reference `47A. In this Part, a reference to registration of a financial institution's 2 name is a reference to-- 3 (a) if the institution is a society--registration by the SSA, under the 4 Financial Institutions Code, of-- 5 (i) a society's rules containing the name; or 6 (ii) an alteration of a society's rules to contain the name; or 7 (iii) a body corporate of that name as a foreign society; or 8 (b) if the institution is a special services provider--registration by 9 AFIC, under this Code, of-- 10 (i) a special services provider's rules containing the name; or 11 (ii) an alteration of a special services provider's rules to contain 12 the name. 13 institution must have certain words as part of name 14 `Financial `47B.(1) The name of a building society must include the words 15 `building society' as part of its name. 16 `(2) The name of a credit union must include the words `credit union', 17 `credit society' or `credit co-operative' as part of its name. 18 `(3) The name of a financial institution must include the word `Limited' 19 or the abbreviation `Ltd.' at the end of its name. 20 of names 21 `Reservation `47C.(1) A person may apply in writing to AFIC to reserve a specified 22 name as-- 23 (a) the name for a proposed financial institution; or 24 (b) the new name for a financial institution; or 25 (c) the name under which a society proposes to carry on business as 26 a foreign society; or 27 (d) a name, other than its registered name, a financial institution 28 proposes to use if approved under section 139(5) (Name) of the 29

 


 

s 74 51 s 74 Financial Institutions Legislation Amendment Financial Institutions Code. 1 `(2) If the name is available to the financial institution or proposed 2 financial institution, AFIC must reserve it for 2 months. 3 `(3) For the purpose of this section, a name is available to a financial 4 institution or proposed financial institution unless the name-- 5 (a) is reserved for another financial institution or proposed financial 6 institution under the financial institutions legislation; or 7 (b) is registered for another financial institution under the financial 8 institutions legislation; or 9 (c) has been approved for use by another financial institution under 10 section 139(5) of the Financial Institutions Code or the 11 corresponding provision of the financial institutions legislation of 12 another participating State; or 13 (d) is reserved or registered for a body corporate under the 14 Corporations Law; or 15 (e) is on the national business names register; or 16 (f) is likely to be confused with a name mentioned in paragraphs (a) 17 to (e); or 18 (g) does not comply with section 47B (Financial institution must 19 have certain words as part of name); or 20 (h) is, in AFIC's opinion, undesirable. 21 `(4) In subsection (3)(a) to (c)-- 22 "financial institution" or "proposed financial institution" includes a 23 financial institution or proposed financial institution under the financial 24 institutions legislation of another participating State. 25 `(5) In this section, a reference to section 139(5) of the Financial 26 Institutions Code includes, for a special services provider, that provision as 27 applied under section 40 (Application of Financial Institutions Code).'. 28 of reservation 29 `Extension `47D. On application by the person who applied for reservation of a 30 name, AFIC may, before the end of the period for which the name is 31

 


 

s 75 52 s 76 Financial Institutions Legislation Amendment reserved (or the period as previously extended), grant 1 or more extensions 1 of the period. 2 of reservation 3 `End `47E. A name stops being reserved for a financial institution or proposed 4 financial institution when-- 5 (a) the name is registered under the financial institutions legislation; 6 or 7 (b) the name is approved for use under section 139(5) (Name) of the 8 Financial Institutions Code or the corresponding provision of the 9 financial institutions legislation of another participating State; or 10 (c) AFIC cancels the reservation of the name at the request of the 11 person who applied for reservation; or 12 (d) the period (or extended period) of reservation ends. 13 may direct change of name etc. 14 `AFIC `47F.(1) If, through inadvertence or otherwise, the circumstances 15 mentioned in subsection (2) arise, AFIC may-- 16 (a) direct a financial institution to change its name; or 17 (b) direct the SSA to revoke approval given to a financial institution, 18 under section 139(5) (Name) of the Financial Institutions Code, 19 to use a name. 20 `(2) The circumstances are that AFIC is satisfied the financial 21 institution's name, or a name approved for use by the financial institution 22 under section 139(5) of the Financial Institutions Code, is likely to be 23 confused with-- 24 (a) a name approved for use by another financial institution under 25 that section or the corresponding provision of the financial 26 institutions legislation of another participating State; or 27 (b) another financial institution's name; or 28 (c) a body corporate's name; or 29 (d) a name on the national business names register. 30

 


 

s 77 53 s 79 Financial Institutions Legislation Amendment `(3) A financial institution must comply with a direction under 1 subsection (1). 2 Maximum penalty--$25 000. 3 `(4) In subsection (2)(a) and (b)-- 4 "financial institution" includes a financial institution under the financial 5 institutions legislation of another participating State.'. 6 of s 52 (Obtaining evidence) 7 Amendment 75. Section 52(6)-- 8 omit, insert-- 9 `(6) AFIC may authorise an employee for the purpose of 10 subsection (1)(a) only if the person has, in AFIC's opinion, the appropriate 11 expertise for the purpose (whether because of training or otherwise).'. 12 of s 63 (Proceedings for offences) 13 Amendment 76. Section 63(1)-- 14 omit, insert-- 15 `63.(1) AFIC, or a person authorised in writing by AFIC, may bring a 16 proceeding for-- 17 (a) an offence against this Code; or 18 (b) an offence against section 402(1) (Financial bodies to comply 19 with standards) of the Financial Institutions Code for a 20 contravention of a standard about industry funded liquidity 21 support arrangements for societies; or 22 (c) an offence against section 402(2) of the Financial Institutions 23 Code. 24 `(1A) Before starting a proceeding for an offence mentioned in 25 subsection (1)(b) or (c), AFIC must give written notice to the SSA. 26 `(1B) However, a failure to give the notice does not affect the validity of 27 the proceeding.'. 28

 


 

s 80 54 s 81 Financial Institutions Legislation Amendment of s 96 (Appeals to Supreme Court of Queensland from 1 Amendment decisions of Appeals Tribunal) 2 77.(1) Section 96, heading-- 3 omit `to Supreme Court of Queensland'. 4 (2) Section 96(1) to (4), (6) and (7)-- 5 omit `Supreme Court of Queensland', insert `Court'. 6 of s 97 (Operation and implementation of a decision 7 Amendment subject to appeal) 8 78. Section 97 (1) and (2)-- 9 omit `Supreme Court of Queensland', insert `Court'. 10 of s 98 (Reference of questions of law to Supreme Court 11 Amendment of Queensland) 12 79.(1) Section 98, heading-- 13 omit `to Supreme Court of Queensland'. 14 (2) Section 98(1) and (3)-- 15 omit `Supreme Court of Queensland', insert `Court'. 16 of s 99 (Costs) 17 Amendment 80.(1) Section 99-- 18 insert-- 19 `(1A) The Appeals Tribunal may also direct the parties to the proceeding 20 to pay to it the amount prescribed by regulation or, if no amount is 21 prescribed, a reasonable amount, for the costs of conducting the 22 proceeding.'. 23 (2) Section 99(2), after `subsection (1)'-- 24 insert `or (1A)'. 25 (3) Section 99(3), after `subsection (1)'-- 26

 


 

s 80 55 s 81 Financial Institutions Legislation Amendment insert `or (1A)'. 1 of s 100 (Protection of members) 2 Amendment 81. Section 100-- 3 omit `Supreme Court of Queensland', insert `High Court'. 4 5 State of Queensland 1994

 


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