Richard Colbeck (Tasmania, Liberal Party, Minister for Senior Australians and Aged Care Services) Share this | Link to this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

FINANCIAL REGULATOR ASSESSMENT AUTHORITY BILL 2021

This Bill will create the Financial Regulator Assessment Authority (FRAA), which will be charged with assessing the effectiveness and capability of the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).

This will fulfil the Government's commitment to implement recommendations 6.13 and 6.14 of the Financial Services Royal Commission. The Royal Commission highlighted that while APRA and ASIC operate within complex accountability frameworks, the regulators' effectiveness in delivering on their mandates is not subject to consistent and independent expert review over time. The FRAA will provide a robust framework for assessing the effectiveness and capability of APRA and ASIC.

The FRAA will consist of three expert part-time members (including the Chair) and an additional ex-officio member from the Department of the Treasury. The members will be supported by a secretariat located within the Department of the Treasury.

The FRAA will be required to conduct biennial assessments of the effectiveness and capability of APRA and ASIC. In addition to the biennial assessments, the Minister may also direct the FRAA to conduct assessments on any matter relating to the effectiveness and capability of the regulators.

To preserve the independence of APRA and ASIC, the FRAA will not be permitted to assess and report on single cases, or on individual uses of their legislative powers.

Full details of the measure are contained in the Explanatory Memorandum.

FINANCIAL REGULATOR ASSESSMENT AUTHORITY (CONSEQUENTIAL AMENDMENTS AND TRANSITIONAL PROVISIONS) BILL 2021

This Bill facilitates the disclosure of sensitive, confidential and protected information from the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investment Commission (ASIC) to the Financial Regulator Assessment Authority (FRAA).

This information will support the FRAA to carry out its main function of providing effectiveness and capability assessments of APRA and ASIC.

The Legislative and Governance Forum on Corporations was notified in relation to the amendments as required under the Corporations Agreement 2002.

Full details of the measure are contained in the Explanatory Memorandum.

Debate adjourned.