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Australian Financial Institutions Commission Code

AUSTRALIAN FINANCIAL INSTITUTIONS COMMISSION CODE

Queensland AUSTRALIAN FINANCIAL INSTITUTIONS COMMISSION CODE Reprinted as in force on 24 February 1998 (includes amendments up to Act No. 33 of 1997) Reprint No. 4 This reprint is prepared by the Office of the Queensland Parliamentary Counsel Warning—This reprint is not an authorised copy

Information about this reprint This Code is reprinted as at 24 February 1998. The reprint— • shows the law as amended by all amendments that commenced on or before that day (Reprints Act 1992 s 5(c)) • incorporates all necessary consequential amendments, whether of punctuation, numbering or another kind (Reprints Act 1992 s 5(d)). The reprint includes a reference to the law by which each amendment was made—see list of legislation and list of annotations in endnotes. Minor editorial changes allowed under the provisions of the Reprints Act 1992 mentioned in the following list have also been made to— • use standard punctuation consistent with current drafting practice (s 27) • use aspects of format and printing style consistent with current drafting practice (s 35) • correct minor errors (s 44). This page is specific to this reprint. See previous reprints for information about earlier changes made under the Reprints Act 1992. A table of earlier reprints is included in the endnotes. Also see endnotes for information about— • when provisions commenced • editorial changes made in the reprint, including table of corrected minor errors • editorial changes made in earlier reprints.

Queensland AUSTRALIAN FINANCIAL INSTITUTIONS COMMISSION CODE TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY Division 1—Introductory 1 Citation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Division 2—Interpretation 3 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4 Interpretation—words etc. used in Financial Institutions Code or Friendly Societies Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 5 Interpretation—meaning of making a decision . . . . . . . . . . . . . . . . . . . . . . . 14 PART 2—THE FINANCIAL INSTITUTIONS SCHEME AND ITS MAIN ELEMENTS Division 1—General 6 The financial institutions scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 7 Initial financial institutions agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 8 Financial institutions legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 8A Friendly societies legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 9 Principal object of financial institutions scheme and its achievement . . . . 16 10 Principles of supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 11 Role of State supervisory authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Division 2—Operation of fiscal bodies legislation 12 Extraterritorial operation of legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 13 Fiscal bodies legislation binds the Crown . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

2 Australian Financial Institutions Commission Code PART 3—AFIC AND ITS BOARD Division 1—Establishment and general functions and powers of AFIC 14 Establishment of AFIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 15 Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 16 General powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 17 AFIC is body corporate etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 18 AFIC independent body . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 19 AFIC to comply with financial institutions agreement etc. . . . . . . . . . . . . . 23 20 Place of principal office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 21 AFIC does not represent Crown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 22 AFIC exempt public authority under Corporations Law . . . . . . . . . . . . . . . . 23 23 Consultation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Division 2—Establishment and composition of AFIC’s board 24 The board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 25 Composition of the board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 26 Role of the board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 27 Duties of executive director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 PART 4—STANDARDS 28 Making etc. of standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 29 Procedures before making of standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 30 Urgent standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 31 Application of changed requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 32 Transitional arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 33 Matters for which standards may make provision . . . . . . . . . . . . . . . . . . . . . 28 34 Publication of standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 35 No discrimination on ground of connection with particular States . . . . . . . 29 PART 5—SPECIAL SERVICES PROVIDERS 36 Registration of special services providers . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 37 Certificate of incorporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 38 Effect of incorporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 39 Effect of incorporation on certain bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

3 Australian Financial Institutions Commission Code 40 Application of Financial Institutions Code . . . . . . . . . . . . . . . . . . . . . . . . . . 32 41 Special services providers to comply with standards . . . . . . . . . . . . . . . . . . 33 PART 6—INDUSTRY FUNDED LIQUIDITY SUPPORT ARRANGEMENTS FOR SOCIETIES 42 Object of part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 43 Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 44 Determination that liquidity support necessary . . . . . . . . . . . . . . . . . . . . . . . 34 45 Restrictions on making determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 46 Provision of liquidity support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 46A Certain applied provisions not effective . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 46B Limitation on court’s power to make order . . . . . . . . . . . . . . . . . . . . . . . . . . 38 47 AFIC to encourage special services providers to facilitate liquidity support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 PART 6A—NAMES 47A Reference to registration of fiscal body’s name . . . . . . . . . . . . . . . . . . . . . . 39 47B Fiscal body must have certain words as part of name . . . . . . . . . . . . . . . . . 39 47BA Approval of name for use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 47C Reservation of names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 47D Extension of reservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 47E End of reservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 47F AFIC may direct change of name or revoke approval of name . . . . . . . . . . 42 PART 7—PROVISIONS RELATING TO STATE SUPERVISORY AUTHORITIES 48 Obtaining information from State supervisory authorities . . . . . . . . . . . . . . 44 49 Reports to Ministerial Council etc. concerning State supervisory authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 PART 8—ENFORCEMENT POWERS 50 Injunctions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 51 Obtaining information etc. from financial institutions . . . . . . . . . . . . . . . . . 47 52 Obtaining evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 53 Inspectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 54 Inspector to produce identity card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 55 Entry and search—monitoring compliance . . . . . . . . . . . . . . . . . . . . . . . . . . 51

4 Australian Financial Institutions Commission Code 56 Entry and search—evidence of offences . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 57 General powers of inspector in relation to places . . . . . . . . . . . . . . . . . . . . . 54 58 Monitoring warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 59 Offence related warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 60 Offence related warrant may be granted by telephone . . . . . . . . . . . . . . . . . 56 61 Obstruction etc. of inspectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 62 False or misleading statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 63 Proceedings for offences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 PART 9—REVIEW OF DECISIONS Division 1—Appeals Tribunal 64 Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Division 2—Review of decisions 65 Reviewable decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 66 Application for review of decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 67 Way of applying for review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Division 3—Membership of Appeals Tribunal 68 Composition of Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 69 Appointment of members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 70 Qualifications for appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 71 Term of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 72 Terms and conditions of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 73 Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 74 Disclosure of interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 75 Termination of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 76 Acting chairperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Division 4—Organisation of Appeals Tribunal 77 Arrangement of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 78 Constitution of Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 79 Member presiding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 80 Member ceasing to be available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 81 Sitting places . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

5 Australian Financial Institutions Commission Code Division 5—Conduct of proceedings before Appeals Tribunal 82 Parties to proceeding before Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . 66 83 Appeals Tribunal to determine who are interested persons . . . . . . . . . . . . . 67 84 Representation before Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 85 Procedure of Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 86 Conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 87 Hearings to be in private unless all parties agree etc. . . . . . . . . . . . . . . . . . 69 88 Opportunity to make submissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 89 Particular powers of Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 90 Operation and implementation of a decision that is subject to review . . . . 71 91 Way in which questions to be decided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 92 Power of Appeals Tribunal to dismiss claim or strike out party . . . . . . . . . 72 93 General powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 94 Review by tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 95 Reasons to be given by Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 96 Appeals from decisions of Appeals Tribunal . . . . . . . . . . . . . . . . . . . . . . . . . 73 97 Operation and implementation of a decision subject to appeal . . . . . . . . . . 74 98 Reference of questions of law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 99 Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 100 Protection of members etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 101 Failure of witness to attend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 102 Refusal of witness to be sworn or answer questions etc. . . . . . . . . . . . . . . . 76 103 False or misleading evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 104 Contempt of tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 105 Obstructing tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 106 Person not to contravene order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 107 Confidential information not to be disclosed . . . . . . . . . . . . . . . . . . . . . . . . . 78 108 Allowances for witnesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Division 6—Miscellaneous 109 Management of administrative affairs of tribunal . . . . . . . . . . . . . . . . . . . . . 79 110 Appeals Tribunal’s employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

6 Australian Financial Institutions Commission Code 111 Terms and conditions of employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 112 Arrangements relating to staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 113 Consultants to tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 114 Annual report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 115 Delegation of powers by chairperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 PART 10—ACCOUNTABILITY AND FINANCIAL MATTERS 116 Annual reports and financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 117 Board to keep Ministerial Council informed . . . . . . . . . . . . . . . . . . . . . . . . . 82 118 Determination of AFIC’s budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 119 Administration levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 120 Collection of administration levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 PART 11—THE BOARD OF AFIC Division 1—Meetings of the board 121 Interpretation—meaning of “required minimum number of directors” . . . . 85 122 Times and places of meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 123 Presiding at meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 124 Quorum and voting at meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 125 Conduct of meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 126 Resolutions without meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 127 Minutes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 128 Disclosure of interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 129 Exclusion of executive director from certain deliberations . . . . . . . . . . . . . 88 Division 2—Provisions relating to directors other than the executive director 130 Division applies to directors other than executive director . . . . . . . . . . . . . 88 131 Appointments made by Governor in Council of Queensland on nomination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 132 Restriction on appointments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 133 Directors appointed under Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 134 Appointment not invalid because of appointment defect etc. . . . . . . . . . . . 89 135 Term of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 136 Terms and conditions of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

7 Australian Financial Institutions Commission Code 137 Leave of absence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 138 Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 139 Termination of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 140 Deputy chairperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 141 Acting appointments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Division 3—Provisions relating to the executive director 142 Appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 143 Restriction on appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 144 Executive director appointed under Code . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 145 Appointment not invalid because of appointment defect etc. . . . . . . . . . . . 92 146 Term of appointment etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 147 Executive director not to engage in other paid employment . . . . . . . . . . . . 92 148 Disclosure of interests by executive director . . . . . . . . . . . . . . . . . . . . . . . . . 92 149 Terms and conditions of appointment not provided by Code . . . . . . . . . . . . 93 150 Acting executive director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Division 4—Miscellaneous 151 Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 PART 12—THE STAFF OF AFIC 152 AFIC’s employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 153 Terms and conditions of employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 154 Arrangements relating to staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 PART 13—MISCELLANEOUS 155 Secrecy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 156 Register of financial interests of directors and employees . . . . . . . . . . . . . . 97 157 Directors and employees to act honestly etc. . . . . . . . . . . . . . . . . . . . . . . . . 99 158 Liability of directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 159 Liability of employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 160 AFIC’s seal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 161 Judicial notice of certain signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 162 Evidentiary provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 163 Delegation of AFIC’s powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

8 Australian Financial Institutions Commission Code 164 Delegation of board’s powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 165 Application of Financial Administration and Audit Act . . . . . . . . . . . . . . . 103 PART 14—TRANSITIONAL 166 Transitional provision for commencement of amendments for applying Code to friendly societies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . 105 INITIAL FINANCIAL INSTITUTIONS AGREEMENT ENDNOTES 1 Index to endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 2 Date to which amendments incorporated . . . . . . . . . . . . . . . . . . . . 139 3 Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 4 Table of earlier reprints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 5 Tables in earlier reprints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 6 List of legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 7 List of annotations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 8 Table of corrected minor errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

s1 9 s3 Australian Financial Institutions Commission Code AUSTRALIAN FINANCIAL INSTITUTIONS COMMISSION CODE [as amended by all amendments that commenced on or before 24 February 1998] † PART 1—PRELIMINARY † Division 1—Introductory ˙ Citation 1. This Code may be referred to as the AFIC Code. ˙ Commencement 2. This Code commences as provided under section 2 of the Australian Financial Institutions Commission Act 1992 of Queensland. † Division 2—Interpretation ˙ Definitions 3. In this Code— “affairs” , in relation to a body, has the meaning given by section 53 of the Corporations Law. “AFIC” means the Australian Financial Institutions Commission. “AFIC Act” means the Australian Financial Institutions Commission Act 1992 of Queensland. “Appeals Tribunal” means the Australian Financial Institutions Appeals Tribunal. “ASC” means the Australian Securities Commission.

s 3 10 s 3 Australian Financial Institutions Commission Code “association” means (other than in the definition “friendly association”) a body registered under the financial institutions legislation as an association. “board” means the board of directors of AFIC. “body” includes an entity. “building society” means a body that is— (a) registered under the financial institutions legislation as a society; and (b) authorised under that legislation to operate as a building society. “chairperson” means— (a) in relation to the board—the chairperson of the board; or (b) in relation to the Appeals Tribunal—the chairperson of the Appeals Tribunal. “COFS” means the coordinating body known as the Council of Financial Supervisors. “credit union” means a body that is— (a) registered under the financial institutions legislation as a society; and (b) authorised under that legislation to operate as a credit union. “deputy chairperson” means— (a) in relation to the board—the deputy chairperson of the board; or (b) in relation to the Appeals Tribunal—a deputy chairperson of the Appeals Tribunal. “director” means a director of the board, and includes the chairperson, the deputy chairperson and the executive director. “economic entity” means an economic entity for the purposes of part 3.6 of the Corporations Law. “employee” , in relation to AFIC, includes— (a) a person whose services are made available to AFIC; and

s 3 11 s 3 Australian Financial Institutions Commission Code (b) a person engaged by AFIC on a contract for services. “entity” means an entity for the purposes of part 3.6 of the Corporations Law. “executive director” means the executive director of AFIC. “financial body” means— (a) a society; or (b) an association. “financial institution” means— (a) a society; or (b) an association; or (c) a special services provider. “financial institutions agreement” means the initial financial institutions agreement or, if that agreement is amended or affected by another agreement, that agreement as so amended or affected. “financial institutions legislation” has the meaning given by section 8. “financial institutions scheme” has the meaning given by section 6. “fiscal bodies legislation” means— (a) the financial institutions legislation; and (b) the friendly societies legislation. “fiscal body” means— (a) a financial institution; or (b) a friendly institution. “friendly association” means a body formed by friendly societies and registered under the friendly societies legislation as an association. “friendly institution” means— (a) a friendly society; or (b) a friendly association. “friendly societies legislation” has the meaning given by section 8A.

s 3 12 s 3 Australian Financial Institutions Commission Code “friendly society” means a body that is registered under the friendly societies legislation as a society. “group” means an economic entity of which a fiscal body is a part. “initial financial institutions agreement” has the meaning given by section 7. “inspector” means a person authorised under section 53 (Inspectors). “Interstate Consultative Committee” means the Interstate Consultative Committee established under the financial institutions agreement. “ISC” means the Insurance and Superannuation Commissioner under the Insurance and Superannuation Commissioner Act 1987 of the Commonwealth. “Ministerial Council” means the Ministerial Council established under the financial institutions agreement. “non-presiding member” , in relation to the Appeals Tribunal, means a member of the Appeals Tribunal other than the chairperson or a deputy chairperson. “participating State” means a State that is a party to the financial institutions agreement. “PHIAC” means the Private Health Insurance Administration Council under the National Health Act 1953 of the Commonwealth. “presiding member” , in relation to the Appeals Tribunal, means the chairperson or a deputy chairperson of the Appeals Tribunal. “prudential standard” includes— (a) a standard relating to all or any of the following matters in relation to fiscal bodies— (i) capital adequacy; (ii) liquidity; (iii) large exposures; (iv) doubtful and non-performing debts; (v) guarantees;

s 3 13 s 3 Australian Financial Institutions Commission Code (vi) borrowings; (vii) charges and securities; (viii)ownership and control; (ix) prohibited investments; (x) risk management systems; (xi) obligations of directors in relation to financial affairs; (xii) representation of bodies that are part of the same group on boards of directors; (xiii)management contracts; (xiv)the structure of, and relationship between, bodies that are part of groups; (xv) transactions and agreements between bodies that are part of groups; (xvi)disclosure documents; or (b) any standard relating to the financial stability of fiscal bodies; or (c) a standard relating to the interpretation, administration, enforcement or supervision of a standard mentioned in paragraph (a) or (b). “RBA” means the Reserve Bank of Australia. “society” means (other than in the definition “friendly society”)— (a) a building society; or (b) a credit union; or (c) any other body registered under the financial institutions legislation as a society. “special services provider” means a body that is registered under the financial institutions legislation as a special services provider. “standard” means a standard in force under section 28 (Making etc. of standards). “State” includes a Territory.

s 4 14 s 5 Australian Financial Institutions Commission Code “State supervisory authority” , in relation to a State, means— (a) to the extent that a provision of this Code in which the expression appears applies, or is applied, to a financial body—the person or body declared by the financial institutions legislation of the State to be the State supervisory authority for the State; and (b) to the extent that a provision of this Code in which the expression appears applies, or is applied, to a friendly institution—the person or body declared by the friendly societies legislation of the State to be the State supervisory authority for the State. “tribunal” means the Australian Financial Institutions Appeals Tribunal. ˙ Interpretation—words etc. used in Financial Institutions Code or Friendly Societies Code 4. Unless the contrary intention appears, words and expressions used in the Financial Institutions Code or Friendly Societies Code have the same respective meanings in this Code. ˙ Interpretation—meaning of making a decision 5. A reference in this Code to the making of a decision includes a reference to— (a) making, suspending, revoking or refusing to make an order or determination; or (b) giving, suspending, revoking or refusing to give a certificate, direction, approval, consent or permission; or (c) issuing, suspending, revoking or refusing to issue a licence, authority or other instrument; or (d) imposing a condition or restriction; or (e) making a declaration, demand or requirement; or (f) retaining, or refusing to deliver up, an article; or (g) doing or refusing to do anything else.

s 6 15 s 8 Australian Financial Institutions Commission Code † PART 2—THE FINANCIAL INSTITUTIONS SCHEME AND ITS MAIN ELEMENTS † Division 1—General ˙ The financial institutions scheme 6.(1) There is to be a financial institutions scheme for fiscal bodies. (2) The financial institutions scheme is the scheme established and implemented by the financial institutions agreement and the fiscal bodies legislation. ˙ Initial financial institutions agreement 7.(1) The initial financial institutions agreement is the financial institutions agreement made on 22 November 1991 between the States and Territories. (2) A copy of the provisions of the initial financial institutions agreement is set out in the schedule. ˙ Financial institutions legislation 8. The financial institutions legislation consists of— (a) the financial institutions legislation of Queensland, namely— (i) the AFIC Act, and the AFIC Code set out in section 21 of the Act; and (ii) the Financial Institutions (Queensland) Act 1992 of Queensland, and the Financial Institutions Code set out in section 30 of the Act; and (iii) regulations made under either of those Acts; and (b) the financial institutions legislation of the other participating States, namely— (i) the Acts and regulations of the other participating States that

s 8A 16 Australian Financial Institutions Commission Code s9 apply, complement or otherwise give effect to any part of the financial institutions legislation of Queensland; and (ii) the financial institutions legislation of Queensland as applying in those States. ˙ Friendly societies legislation 8A. The friendly societies legislation consists of— (a) the friendly societies legislation of Victoria, namely— (i) the Friendly Societies (Victoria) Act 1996 of Victoria and the Friendly Societies Code set out in schedule 1 of the Act; and (ii) regulations made under the Act; and (b) the friendly societies legislation of the other participating States, namely— (i) the Acts and regulations of the other participating States that apply, complement or otherwise give effect to any part of the friendly societies legislation of Victoria; and (ii) the friendly societies legislation of Victoria as applying in those States; and (c) the financial institutions legislation in so far as it applies or is otherwise relevant to the legislation mentioned in paragraph (a) or (b). ˙ Principal object of financial institutions scheme and its achievement 9.(1) The principal objects of the financial institutions scheme are— (a) to protect and promote the financial integrity and the efficiency of the State-based fiscal bodies system; and (b) to protect the interests of depositors with societies; and (c) to protect the interests of members and prospective members of friendly society benefit funds. (2) It is the intention of the participating States that the principal objects should be achieved principally by—

s 9 17 s 9 Australian Financial Institutions Commission Code (a) establishing systems of prudential and other standards for, and for the supervision of, fiscal bodies that is uniform throughout Australia; and (b) maintaining confidence in fiscal bodies; and (c) encouraging strong, stable and competitive fiscal bodies; and (d) enabling fiscal bodies to operate efficiently on an Australia-wide basis; and (e) approving and supervising special services providers; and (f) supervising and controlling industry funded liquidity support arrangements for societies; and (g) establishing a Ministerial Council to oversight generally the operation of the fiscal bodies legislation; and (h) establishing the Australian Financial Institutions Commission to institute, develop and ensure the effective and efficient implementation of, uniform systems of prudential and other standards for, and for the supervision of, fiscal bodies; and (i) establishing independent State supervisory authorities to undertake day-to-day supervision, administration and enforcement of the uniform systems; and (j) establishing the Interstate Consultative Committee to ensure effective liaison between State supervisory authorities; and (k) ensuring that AFIC and State supervisory authorities are adequately and appropriately funded to achieve the principal objects of the financial institutions scheme; and (l) obtaining for, and for the ongoing implementation of, the financial institutions scheme, the cooperation of the Commonwealth and of the following entities— (i) ASC; (ii) COFS; (iii) ISC;

s 10 18 s 10 Australian Financial Institutions Commission Code (iv) PHIAC; (v) RBA. ˙ Principles of supervision 10.(1) It is the intention of the Legislature of this State that the following principles should be applied in the supervision of fiscal bodies— (a) Recognition of role of fiscal bodies . Fiscal bodies have an important, on-going role in the Australian financial system that needs to be recognised and fostered. (b) Management responsibility . Responsibility for the financial success and viability of fiscal bodies rests with their boards and management, not with governments or supervisors. (c) Effective supervision . There is a need for prudential supervision of fiscal bodies that is effective. (d) Approach to supervision . Supervision should be aimed at the prevention of problems. . Supervision should be based on prudential standards and reporting and disclosure requirements. . Reliable monitoring of the practices and procedures of fiscal bodies, use of external auditors, regular review of overall policy and performance with boards of directors of fiscal bodies, and on-site inspections, should form the key features of supervision arrangements. . As a general rule, supervision arrangements should not shift responsibility from the boards and management of fiscal bodies. (e) Uniform standards . Supervisory arrangements should be uniform across States.

s 11 19 s 11 Australian Financial Institutions Commission Code (f) Flexibility . Supervisory arrangements should be flexible in order to adapt to changes in the financial system and to experience acquired in the conduct of supervision. (g) Competition . Competition should be fostered by ensuring that, to the maximum extent possible, all fiscal bodies compete on an equitable basis with each other and with other bodies in the financial system. . Fiscal bodies that meet the requirements of the financial institutions scheme should be enabled to operate on a national basis. (h) Funding . For prudential supervision to be effective, supervisory authorities need to be adequately resourced. . The on-going cost of supervision should primarily be borne by fiscal bodies and not governments. . Funding should be determined on an equitable basis, both between types of fiscal bodies and between individual fiscal bodies. . Funding arrangements should be determined in consultation with industry bodies. (2) The principles do not have the force of law and are subject to the other provisions of the fiscal bodies legislation. ˙ Role of State supervisory authorities 11. It is the role of State supervisory authorities to— (a) register and supervise financial bodies and friendly institutions; and (b) undertake the administration and enforcement of the financial institutions scheme except so far as it relates to special services providers; and

s 12 20 s 14 Australian Financial Institutions Commission Code (c) assist AFIC to monitor the compliance of financial institutions with the requirements of, and standards relating to, industry funded liquidity support arrangements for societies; and (d) protect the interests of depositors and members of societies and of members of friendly society benefit funds. † Division 2—Operation of fiscal bodies legislation ˙ Extraterritorial operation of legislation 12. The fiscal bodies legislation applies— (a) throughout Australia; and (b) both within and outside Australia. ˙ Fiscal bodies legislation binds the Crown 13.(1) The fiscal bodies legislation binds the Crown in right of this State and, so far as the legislative power of the Legislature of this State permits, the Crown in all its other capacities. (2) Nothing in this section permits the Crown in any of its capacities to be prosecuted for an offence. † PART 3—AFIC AND ITS BOARD † Division 1—Establishment and general functions and powers of AFIC ˙ Establishment of AFIC 14. The Australian Financial Institutions Commission is the commission established by section 4 of the AFIC Act.

s 15 21 s 15 Australian Financial Institutions Commission Code ˙ Functions 15. The functions of AFIC are to— (a) promote on a national basis the financial integrity and the efficiency of the State-based fiscal bodies system; and (b) institute, develop, and ensure the effective and efficient implementation of, systems of prudential and other standards for, and for the supervision of, fiscal bodies that are uniform throughout Australia; and (c) collect information and statistics, publish reports, and disseminate information relating to— (i) fiscal bodies; and (ii) the operation, administration and enforcement of the financial institutions scheme; and (d) register and supervise special services providers; and (e) supervise and control industry funded liquidity support arrangements for societies; and (f) undertake the administration and enforcement of the financial institutions scheme so far as it relates to special services providers and industry funded liquidity support arrangements for societies; and (g) advise, and make recommendations to, the Ministerial Council in relation to— (i) changes to the fiscal bodies legislation; or (ii) new laws, and changes to other existing laws, relating to or affecting fiscal bodies; and (h) institute, administer and develop a system for the reservation and allocation on a national basis of names of fiscal bodies; and (i) carry out such other functions as are conferred on it by or under the fiscal bodies legislation.

s 16 22 s 18 Australian Financial Institutions Commission Code ˙ General powers 16.(1) AFIC has power to do all things necessary or convenient to be done for, or in connection with, the performance of its functions. (2) Without limiting subsection (1), AFIC has such powers as are conferred on it by or under the fiscal bodies legislation. (3) Without limiting subsection (1), AFIC has, for or in connection with the performance of its functions, all the powers of a natural person, and may, for example— (a) enter into contracts; and (b) acquire, hold and dispose of property; and (c) appoint agents and attorneys; and (d) make charges, and fix terms and conditions, for services and information supplied by it; and (e) engage consultants. (4) Without limiting subsection (1), AFIC may give indemnities to its directors and employees. ˙ AFIC is body corporate etc. 17. Under section 5 of the AFIC Act, the Australian Financial Institutions Commission— (a) is a body corporate; and (b) has a seal; and (c) may sue and be sued in its corporate name. ˙ AFIC independent body 18. Except as expressly provided in the fiscal bodies legislation, AFIC is not subject to direction by or on behalf of the Ministerial Council or any government.

s 19 23 s 23 Australian Financial Institutions Commission Code ˙ AFIC to comply with financial institutions agreement etc. 19. In performing its functions and exercising its powers, AFIC must— (a) comply with any applicable provisions of the financial institutions agreement; and (b) strive to ensure that the principal objects of the financial institutions scheme are achieved. ˙ Place of principal office 20. The principal office of AFIC is to be in Brisbane. ˙ AFIC does not represent Crown 21. AFIC does not represent the Crown. ˙ AFIC exempt public authority under Corporations Law 22. Under section 6 of the AFIC Act, AFIC is an exempt public authority for the purposes of the Corporations Law of Queensland. ˙ Consultation 23. In performing its functions and exercising its powers, AFIC must, where it is appropriate and practicable to do so, consult with the Commonwealth, State supervisory authorities, industry bodies and fiscal bodies, and also with the following entities— (a) ASC; (b) COFS; (c) ISC; (d) PHIAC; (e) RBA.

s 24 24 s 27 Australian Financial Institutions Commission Code † Division 2—Establishment and composition of AFIC’s board ˙ The board 24. Under section 7 of the AFIC Act, there is a board of directors of AFIC. ˙ Composition of the board 25. The board consists of the following directors— (a) the chairperson; (b) the deputy chairperson; (c) the executive director; (d) up to 6 other directors. ˙ Role of the board 26. It is the role of the board— (a) to decide the objectives, strategies and policies to be followed by AFIC; and (b) to ensure that AFIC performs its functions in a proper and efficient way. ˙ Duties of executive director 27.(1) The executive director is, under the board, to manage AFIC. (2) Anything done in the name of, or on behalf of, AFIC by the executive director is taken to have been done by AFIC.

s 28 25 s 28 Australian Financial Institutions Commission Code † PART 4—STANDARDS ˙ Making etc. of standards 28.(1) The board may, by resolution, make standards (whether prudential or otherwise) with respect to— (a) the business and affairs of fiscal bodies; and (b) industry funded liquidity support arrangements for societies; and (c) the supervision of fiscal bodies by State supervisory authorities, including the practices and procedures to be adopted in carrying out that supervision; and (d) the administration and enforcement by State supervisory authorities of the financial institutions scheme so far as it relates to fiscal bodies; and (e) the administration and enforcement by AFIC of the financial institutions scheme so far as it relates to special services providers and industry funded liquidity support arrangements for societies; and (f) any other matters in relation to which the fiscal bodies legislation authorises or requires (whether expressly or by implication) standards to be made; and (g) any other matters in relation to fiscal bodies that the board considers necessary or desirable for the achievement of the principal objects of the financial institutions scheme. (2) The board may, by resolution, amend or repeal a standard made under this section. (3) A resolution under this section takes effect from— (a) the day a copy of the resolution is published in the Queensland Government Gazette; or (b) such later day as is specified in the resolution.

s 29 26 s 29 Australian Financial Institutions Commission Code ˙ Procedures before making of standards 29.(1) A standard must not be made, amended or repealed under section 28 (Making etc. of standards) unless this section or section 30 (Urgent standards) is complied with in relation to the resolution by which the standard is to be made, amended or repealed. (2) The board must, not later than 60 days before the passing of the resolution— (a) give each State supervisory authority a notice explaining succinctly the purpose, and intended operation, of the resolution; and (b) publish a notice in the Queensland Government Gazette, and in a newspaper circulating generally in each of the participating States, explaining succinctly the purpose, and intended operation, of the resolution. (3) A notice under subsection (2) is to invite— (a) written suggestions on the proposed resolution to be given to AFIC within 30 days after publication of the Queensland Government Gazette notice; and (b) written comments on those suggestions to be given to AFIC within 21 days after the end of that period of 30 days. (4) AFIC must— (a) make copies of each suggestion and comment given to it available for inspection and purchase at its principal office; and (b) take reasonable steps to ensure that copies of each suggestion and comment given to it are available for inspection and purchase at all offices of State supervisory authorities. (5) AFIC must comply with subsection (4) in relation to a suggestion or comment as soon as practicable after the suggestion or comment is given to it. (6) The board must consider all suggestions and comments given to it under this section before passing the resolution, and may alter the terms of the proposed resolution to take account of suggestions and comments.

s 30 27 s 32 Australian Financial Institutions Commission Code (7) Contravention of this section in relation to a resolution does not affect the validity of the resolution. ˙ Urgent standards 30.(1) If the board determines that it is necessary, because of urgent circumstances, for a resolution making, amending or repealing a standard to be passed without complying with section 29 (Procedures before making of standards), the board may pass that resolution. (2) When the board makes a determination under subsection (1), it must immediately publish a copy of the determination in the Queensland Government Gazette, together with a succinct statement of its reasons for making the determination. (3) A resolution made by virtue of a determination under subsection (1) has effect for only 120 days or, if a lesser period is specified in the resolution, that period. ˙ Application of changed requirements 31.(1) A standard may provide that its operation in relation to a particular fiscal body may be varied by a State supervisory authority by temporarily changing a requirement of the standard as allowed under the standard. (2) This section does not limit by implication section 28 (Making etc. of standards). ˙ Transitional arrangements 32.(1) A standard that imposes requirements, or increases the requirements already imposed by a standard, may make transitional provision for the purpose of allowing additional time to comply with the requirements. (2) This section does not limit by implication section 28 (Making etc. of standards).

s 33 28 s 34 Australian Financial Institutions Commission Code ˙ Matters for which standards may make provision 33.(1) A standard may make provision with respect to a matter by applying, adopting or incorporating (with or without modification) provisions of— (a) any law of the Commonwealth, a State or a foreign country; or (b) any document. (2) If a standard makes provision with respect to a matter by applying, adopting or incorporating provisions of a law or document, the provisions as in force at that time are to be attached to the resolution by which the standard is made, and are taken to be incorporated in the standard. (3) A standard may— (a) apply generally to all persons, matters and things or be limited in its application to particular persons, matters and things; and (b) otherwise apply generally or be limited in its application by reference to specified exceptions or factors. (4) A standard may— (a) apply differently according to different specified factors; or (b) otherwise make different provision in relation to different persons, matters or things. (5) A standard may authorise any matter or thing to be from time to time determined, applied or regulated by any specified person or body. (6) A standard may make provision with respect to a particular aspect of a matter despite the fact that provision is made by the fiscal bodies legislation in relation to another aspect of the matter or in relation to another matter. ˙ Publication of standards 34.(1) When the board makes a resolution for the purposes of section 28 (Making etc. of standards), it must immediately— (a) publish a copy of the resolution in the Queensland Government Gazette; and

s 35 29 s 35 Australian Financial Institutions Commission Code (b) notify each State supervisory authority of the making of the resolution and give each State supervisory authority a copy of the resolution and a summary of its terms; and (c) publish a notice— (i) notifying the making of the resolution; and (ii) explaining succinctly the purpose, and intended operation, of the resolution; in a newspaper circulating generally in each of the participating States; and (d) if the resolution affects a special services provider or industry funded liquidity support arrangements for societies—give a copy of the summary to the financial institutions affected. (2) When a State supervisory authority receives the summary under subsection (1), it must immediately give a copy of it to each fiscal body affected by the resolution for whose supervision it is responsible under the financial institutions scheme. (3) AFIC must take reasonable steps to ensure that copies of the resolution are available for inspection and purchase at all offices of AFIC and State supervisory authorities. (4) Contravention of this section in relation to a resolution does not affect the validity of the resolution. ˙ No discrimination on ground of connection with particular States 35. A standard must not discriminate between fiscal bodies on the ground of their connection with particular States.

s 36 30 s 36 Australian Financial Institutions Commission Code † PART 5—SPECIAL SERVICES PROVIDERS ˙ Registration of special services providers 36.(1) A body may apply to AFIC, in accordance with the regulations, to be registered under this Code as a special services provider. (2) A body is eligible for registration as a special services provider only if— (a) the application for registration complies with this Code; and (b) the body will, after registration, provide only services of the following kinds— (i) providing treasury management services to societies; (ii) receiving deposits from societies; (iii) investing funds of societies in liquid assets; (iv) providing loans or financial accommodation to societies; (v) establishing lines of credit or obtaining financial accommodation; (vi) services approved in writing for the body by AFIC, whether before or after registration; and (c) 2 or more societies, between them, will, after registration— (i) control the composition of the board of directors of the body; or (ii) be in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the body; or (iii) hold more than 50% of the issued share capital of the body (other than any part of the issued share capital that carries no right to participate beyond a specified amount in the distribution of either profits or capital). (3) The application must be accompanied by— (a) the body’s rules; and

s 37 31 s 37 Australian Financial Institutions Commission Code (b) such documents as are prescribed; and (c) such evidence as AFIC requires— (i) that the body is eligible for registration as a special services provider; and (ii) that the body, if registered, will be able to carry out its objects and to comply with all applicable standards. (4) AFIC may, for the purposes of this section, accept a statutory declaration as sufficient evidence of matters mentioned in the declaration. (5) AFIC must register the body as a special services provider, and register its proposed rules, if AFIC is satisfied that— (a) the body is eligible for registration; and (b) its proposed rules are not contrary to the financial institutions legislation; and (c) the body will, if registered, be able to comply with all applicable standards; and (d) the body will, if registered, be able to carry out its objects successfully. ˙ Certificate of incorporation 37.(1) On registering a special services provider under this part, AFIC must— (a) if the special services provider is a company within the meaning of the Corporations Law— (i) issue a certificate that the special services provider is incorporated under this Code; and (ii) give notice of the issuing of the certificate to the Australian Securities Commission; and (iii) give notice of the issuing of the certificate in the gazette; or (c) in any other case—issue a certificate of incorporation to the special services provider.

s 38 32 s 40 Australian Financial Institutions Commission Code (2) A certificate of incorporation is conclusive evidence that all requirements of this Code in relation to registration and matters precedent or incidental to registration have been complied with. ˙ Effect of incorporation 38. On the issue under this part of a certificate of incorporation to a special services provider, the special services provider is a body corporate with perpetual succession and— (a) has, subject to this Code and its rules, the legal capacity of a natural person; and (b) has a common seal; and (c) may sue and be sued in its corporate name. ˙ Effect of incorporation on certain bodies 39.(1) On notice of the issuing of a certificate of incorporation being given under section 37(1)(a) (Certificate of incorporation)— (a) the company is taken to be incorporated under this Code instead of the Corporations Law and its registration as a company under that law is cancelled; and (b) the property of the company vests in the new body incorporated under this Code without any conveyance, transfer or assignment but subject to any debt or liability affecting the property; and (c) the debts and liabilities of the company become the debts and liabilities of the new body. (2) This section has effect despite any law of this State prescribed for the purpose of this subsection. ˙ Application of Financial Institutions Code 40. The prescribed provisions of the Financial Institutions Code apply, with all necessary modifications and any prescribed modifications, to a special services provider and to AFIC as if—

s 41 33 s 43 Australian Financial Institutions Commission Code (a) the special services provider were a society; and (b) AFIC were the State supervisory authority. ˙ Special services providers to comply with standards 41. A special services provider must comply with all applicable standards. Maximum penalty—$25 000. † PART 6—INDUSTRY FUNDED LIQUIDITY SUPPORT ARRANGEMENTS FOR SOCIETIES ˙ Object of part 42. The object of this part is to empower AFIC to cause— (a) building societies to provide liquidity support, on a pro rata basis, to a building society in an emergency situation; and (b) credit unions to provide liquidity support, on a pro rata basis, to a credit union in an emergency situation. ˙ Definition 43. In this part— “eligible society” means— (a) if the society in relation to which the relevant determination under section 44 (Determination that liquidity support necessary) applies is a building society—a building society; or (b) if the society in relation to which the relevant determination under section 44 applies is a credit union—a credit union; but does not include— (c) a society under external administration under part 9 of the

s 44 34 s 45 Australian Financial Institutions Commission Code Financial Institutions Code; or (d) a society in relation to which a determination under section 44 has been made if any loan to which section 46 (Provision of liquidity support) applies has not been repaid; or (e) a society that does not comply with a prime liquid assets ratio requirement that applies to it under a standard; unless AFIC determines, by written notice given to the society, that the society is an eligible society. ˙ Determination that liquidity support necessary 44. Subject to section 45 (Restrictions on making determination), the board may, by resolution, determine that liquidity support is necessary for a building society or credit union (in this part called the “borrowing society” ). ˙ Restrictions on making determination 45.(1) The board must not make a determination under section 44 (Determination that liquidity support necessary) unless it is of the opinion, after making such investigations and taking into account such matters as it considers appropriate, that the borrowing society is able to provide adequate security for any loan to be made to it for the purposes of liquidity support. (2) The board must not make a determination under section 44 unless it is of the opinion, after consultation with the relevant State supervisory authority and after making such investigations and taking into account such matters as it considers appropriate, that the value of the borrowing society’s assets is greater than the value of its liabilities. (3) The board must not make a determination under section 44 unless the board has made a standard that makes provision in relation to— (a) the maximum aggregate amount of all payments that a society may at any given time be required to make for the purposes of liquidity support (not being an amount of more than 50% of the difference between the value of the assets that satisfy the prime liquid assets requirement for the society (as defined by a

s 46 35 s 46 Australian Financial Institutions Commission Code standard) and any payments previously made by the society for the purposes of liquidity support and not repaid to the society); and (b) the calculation of that maximum aggregate amount; and (c) the way of determining the respective amounts eligible societies are required to provide in relation to a society for the purposes of liquidity support (being a way that is based on the value of the total assets (as defined by a standard) of each eligible society); and (d) the obligation of each society to identify assets that are to be retained unencumbered for the purpose of providing security if liquidity support is provided to the society (other than by security in favour of a special services provider, of which the society is a member, to facilitate the provision of liquidity support by the special services provider); and (e) the arrangements under which security taken from a society will be held for the benefit of societies that provide liquidity support to the society; and (f) what constitutes adequate security for the purposes of this section; and (g) the valuation of assets for the purposes of liquidity support. ˙ Provision of liquidity support 46.(1) If the board makes a determination under section 44 (Determination that liquidity support necessary), AFIC may, by written notice given to each eligible society, direct the society to make loans, on a pro rata basis with other eligible societies, to the borrowing society, on adequate security and otherwise on such terms and conditions as are specified in the notice. (2) If— (a) the board makes a determination under section 44; and (b) a society (the “lending society” ) has provided liquidity support otherwise than on a pro rata basis with other eligible societies by

s 46 36 s 46 Australian Financial Institutions Commission Code making a loan to the borrowing society on adequate security and otherwise on terms and conditions that AFIC regards as appropriate; AFIC may, by written notice given to each eligible society (other than the lending society), require the eligible society to reimburse the lending society, on a pro rata basis with other eligible societies and within a specified time, any amount by which the amount of the loan made by the lending society exceeds the amount of the loan that the lending society would have been required to make to the borrowing society if AFIC had directed all eligible societies (including the lending society) to make loans under subsection (1). (3) If— (a) the board makes a determination under section 44; and (b) a special services provider provides liquidity support by making a loan to the borrowing society on adequate security and otherwise on terms and conditions that AFIC regards as appropriate; AFIC may, by written notice given to each eligible society, require the eligible society to reimburse the special services provider, on a pro rata basis with other eligible societies and within a specified time, the amount of the loan made by the special services provider to the borrowing society. (4) An eligible society that complies with subsection (2) or (3) is entitled to the benefit of any relevant loan agreement with the borrowing society, and to the benefit of all security provided by the borrowing society for the loan concerned, in the proportion that the eligible society’s payment bears to the total amount of the loans made to the borrowing society for the purposes of liquidity support, as if the eligible society were an equitable assignee in that proportion of the rights and interest of the lenders to the borrowing society. (5) AFIC may, by written notice given to each eligible society (other than a society (a “defaulting society” ) that has failed to comply with a direction under subsection (1) or a requirement under subsection (2) or (3) in relation to the borrowing society), require the eligible society to perform, on a pro rata basis with other eligible societies that are not defaulting societies and within a specified time, the obligation of a defaulting society under this section.

s 46A 37 Australian Financial Institutions Commission Code s 46A (6) A society that makes a loan to the borrowing society for the purposes of liquidity support otherwise than on a pro rata basis under subsection (2), a special services provider that makes a loan to the borrowing society as mentioned in subsection (3), and an eligible society that makes a payment under subsection (5) in relation to the borrowing society, has a right of contribution against a defaulting society for a part of the amount, determined on a pro rata basis with other eligible societies that are not defaulting societies, that the defaulting society failed to pay. (7) A society that fails to comply with a direction or requirement under this section commits an offence. Maximum penalty—$75 000. ˙ Certain applied provisions not effective 46A.(1) This section applies to the extent that, because of an applied provision, a charge on property of, or a liquidity support loan made to, a borrowing society would otherwise be void or voidable, either generally or as against a particular person. (2) To that extent, the applied provision is ineffective. (3) In this section— “a charge on property of a borrowing society” means a charge given, or available, as security over property of the society in relation to a liquidity support loan made to the society. “applied provision” means— (a) for a charge on property of a borrowing society— (i) the Corporations Law, section 266 or 267, as applying under the Financial Institutions Code, section 227; 1 or (ii) the Corporations Law, section 588FJ, as applying under the 1 This section of the Financial Institutions Code applies the Corporations Law, part 3.5 (Charges) to societies with all necessary and prescribed modifications.

s 46B 38 Australian Financial Institutions Commission Code s 47 Financial Institutions Code, section 342; 2 or (b) for a charge on property of, or a liquidity support loan made to, a borrowing society—the Corporations Law, section 588FE, as applying under the Financial Institutions Code, section 342. “liquidity support loan” , in relation to a borrowing society, means a loan made to the society for the purposes of liquidity support consequent on a determination of the board under section 44. ˙ Limitation on court’s power to make order 46B.(1) If, because of section 46A, a transaction that would otherwise be voidable because of section 588FE is not voidable, a court cannot be satisfied, for the purposes of section 588FF, that the transaction is voidable. (2) This section is to remove doubt. (3) In this section— “section 588FE” means that section of the Corporations Law as applying under the Financial Institutions Code, section 342. “section 588FF” means that section of the Corporations Law as applying under the Financial Institutions Code, section 342. ˙ AFIC to encourage special services providers to facilitate liquidity support 47. AFIC must, unless it would be inappropriate to do so, encourage special services providers to assist it in the exercise of its powers under this 2 This section of the Financial Institutions Code applies the following provisions of the Corporations Law, with all necessary and prescribed modifications, to the winding-up or dissolution of a society or to a defunct or dissolved society— • part 5.4 (Winding up in insolvency) • part 5.4A (Winding up by the Court on other grounds) • part 5.4B (Winding up in insolvency or by the Court) • part 5.5 (Voluntary winding up) • part 5.6 (Winding up generally) • part 5.7B (Recovering property or compensation for the benefit of creditors of insolvent company) (other than section 588G) • part 5.9 (Miscellaneous).

s 47A 39 Australian Financial Institutions Commission Code s 47B part, and otherwise to facilitate the provision of liquidity support to societies. † PART 6A—NAMES ˙ Reference to registration of fiscal body’s name 47A. In this part, a reference to registration of a fiscal body’s name is a reference to— (a) if the fiscal body is a financial body—registration by the SSA, under the Financial Institutions Code, of— (i) a financial body’s rules containing the name; or (ii) an alteration of a financial body’s rules to contain the name; or (b) if the fiscal body is a friendly institution—registration by the SSA, under the Friendly Societies Code, of— (i) a friendly institution’s rules containing the name; or (ii) an alteration of a friendly institution’s rules to contain the name; or (c) if the fiscal body is a special services provider—registration by AFIC, under this Code, of— (i) a special services provider’s rules containing the name; or (ii) an alteration of a special services provider’s rules to contain the name. ˙ Fiscal body must have certain words as part of name 47B.(1) The name of a building society must include the words ‘building society’ as part of its name. (2) The name of a credit union must include the words ‘credit union’, ‘credit society’ or ‘credit co-operative’ as part of its name.

s 47BA 40 Australian Financial Institutions Commission Code s 47BA (3) The name of a friendly society must include the words ‘friendly society’ as part of its name. (4) The name of a fiscal body must include the word ‘Limited’ or the abbreviation ‘Ltd.’ at the end of its name. ˙ Approval of name for use 47BA.(1) AFIC may, on application by a fiscal body, approve the use by the fiscal body of a name other than its registered name subject to the conditions AFIC decides. (2) However, AFIC may give approval under subsection (1) only if— (a) it first consults with the State supervisory authority with which the fiscal body’s rules are registered; and (b) the name the fiscal body wishes to use is reserved for the fiscal body by AFIC under this part. (3) AFIC may, by written notice given to a fiscal body, revoke an approval given to the fiscal body under subsection (1) or vary or revoke conditions to which it is subject. (4) If, other than in relation to a special services provider, AFIC gives an approval under subsection (1), revokes an approval under subsection (3) or varies or revokes conditions to which an approval is subject, AFIC must, as soon as practicable, notify each State supervisory authority of the approval, revocation or variation. (5) A fiscal body must comply with the conditions of an approval under subsection (1). Maximum penalty—$75 000. (6) An approval given under the Financial Institutions Code, section 139(5) (Name) before the commencement of this section, and still in force immediately before the commencement, is taken, for all purposes under the financial institutions legislation, to be an approval given under subsection (1). (7) Subsection (2)(a) does not apply if the applicant under subsection (1) is a special services provider.

s 47C 41 Australian Financial Institutions Commission Code s 47C ˙ Reservation of names 47C.(1) A person may apply in writing to AFIC to reserve a specified name as— (a) the name for a proposed fiscal body; or (b) the new name for a fiscal body; or (c) the name under which a society proposes to carry on business as a foreign society under the Financial Institutions Code; or (d) the name under which a friendly society proposes to carry on business as a foreign society under the Friendly Societies Code; or (e) a name, other than its registered name, a fiscal body proposes to use if approved under section 47BA (Approval of name for use). (2) If the name is available to the fiscal body or proposed fiscal body, AFIC must reserve it for 2 months. (3) For the purpose of this section, a name is available to a fiscal body or proposed fiscal body unless the name— (a) is reserved for another fiscal body or proposed fiscal body under the fiscal bodies legislation; or (b) is registered for another fiscal body under the fiscal bodies legislation; or (c) has been approved for use by another fiscal body under section 47BA (Approval of name for use) or the corresponding provision of the fiscal bodies legislation of another participating State; or (d) is reserved or registered for a body corporate under the Corporations Law; or (e) is on the national business names register; or (f) is likely to be confused with a name mentioned in paragraphs (a) to (e); or (g) does not comply with section 47B (Fiscal body must have certain words as part of name); or

s 47D 42 Australian Financial Institutions Commission Code s 47F (h) is, in AFIC’s opinion, undesirable. (4) In subsection (3)(a) to (c)— “fiscal body” or “proposed fiscal body” includes a fiscal body or proposed fiscal body under the fiscal bodies legislation of another participating State. ˙ Extension of reservation 47D. On application by the person who applied for reservation of a name, AFIC may, before the end of the period for which the name is reserved (or the period as previously extended), grant 1 or more extensions of the period. ˙ End of reservation 47E. A name stops being reserved for a fiscal body or proposed fiscal body when— (a) under the fiscal bodies legislation, the name becomes the registered name of the fiscal body; or (b) the name is approved for use under section 47BA (Approval of name for use) or the corresponding provision of the fiscal bodies legislation of another participating State; or (c) AFIC cancels the reservation of the name at the request of the person who applied for reservation; or (d) the period (or extended period) of reservation ends. ˙ AFIC may direct change of name or revoke approval of name 47F.(1) If, through inadvertence or otherwise, the circumstances mentioned in subsection (2) arise, AFIC may— (a) direct a fiscal body to change its name; or (b) revoke an approval given to a fiscal body under section 47BA (Approval of name for use). (2) The circumstances are that AFIC is satisfied that the fiscal body’s

s 47F 43 Australian Financial Institutions Commission Code s 47F name, or a name approved for use by the fiscal body under section 47BA, is likely to be confused with— (a) a name approved for use by another fiscal body under section 47BA or the corresponding provision of the fiscal bodies legislation of another participating State; or (b) another fiscal body’s name; or (c) a body corporate’s name; or (d) a name on the national business names register. (3) A fiscal body must comply with a direction under subsection (1). Maximum penalty—$25 000. (4) A direction under subsection (1) may state that it is to be implemented— (a) immediately; or (b) if AFIC considers a staged implementation is reasonable in the circumstances of the direction or revocation—in the way directed by AFIC. (5) A revocation under subsection (1) may be expressed to have effect— (a) immediately; or (b) if AFIC considers that, in the circumstances, the revocation should have effect from a later time—a later time. (6) In subsection (2)(a) and (b)— “fiscal body” includes a fiscal body under the fiscal bodies legislation of another participating State.

s 48 44 s 49 Australian Financial Institutions Commission Code † PART 7—PROVISIONS RELATING TO STATE SUPERVISORY AUTHORITIES ˙ Obtaining information from State supervisory authorities 48.(1) AFIC may, by written notice given to a State supervisory authority, require the authority— (a) to give to it, within the time and in the way specified in the notice, specified information and reports; and (b) to give to it, at the times and in the way specified in the notice, periodic reports on specified matters; and (c) to notify it, within the time and in the way specified in the notice, if— (i) a specified event or change of circumstances happens; or (ii) the State supervisory authority becomes aware that a specified event or change of circumstances is likely to happen. (2) The State supervisory authority must ensure that a notice under subsection (1) is fully complied with, whether by, for example, requiring a financial body or friendly institution— (a) to give it information or reports; or (b) to notify it of or in relation to events or changes of circumstances. ˙ Reports to Ministerial Council etc. concerning State supervisory authorities 49.(1) If— (a) a State supervisory authority fails to supply information to AFIC that it is required to supply or, in AFIC’s opinion, otherwise contravenes the fiscal bodies legislation; or (b) a State supervisory authority, in AFIC’s opinion, contravenes or fails to give effect to a standard; or (c) a State supervisory authority fails to take action in relation to any

s 49 45 s 49 Australian Financial Institutions Commission Code matter that is, in AFIC’s opinion, adequate and appropriate in the circumstances; AFIC may inform the relevant Minister of the participating State concerned in writing of the matter. (2) Before deciding to inform that Minister, AFIC must— (a) consult with the State supervisory authority; and (b) take into account the views of the State supervisory authority in relation to the matter. (3) If AFIC provides information to a Minister of a State under subsection (1), AFIC must provide with the information any comments provided to AFIC by the State supervisory authority in relation to the matter. (4) If— (a) AFIC provides information to a Minister of the State under subsection (1); and (b) the State supervisory authority fails to take action in relation to the matter that is, in AFIC’s opinion, adequate and appropriate in the circumstances; AFIC may inform the Ministerial Council in writing of the matter. (5) If AFIC provides information to the Ministerial Council under subsection (4), AFIC must provide with the information any comments provided to AFIC by the State supervisory authority in relation to the matter. (6) If— (a) AFIC provides information to the Ministerial Council under subsection (4); and (b) the State supervisory authority fails to take action in relation to the matter that is, in AFIC’s opinion, adequate and appropriate in the circumstances; AFIC may provide a report on the matter to the Premier of the participating State concerned.

s 50 46 s 50 Australian Financial Institutions Commission Code † PART 8—ENFORCEMENT POWERS ˙ Injunctions 50.(1) If a person has engaged, is engaging or is proposing to engage in conduct that constituted, constitutes or would constitute— (a) a contravention of this Code; or (b) attempting to contravene this Code; or (c) aiding, abetting, counselling or procuring a person to contravene this Code; or (d) inducing or attempting to induce (whether by threats, promises or otherwise) a person to contravene this Code; or (e) being in any way, directly or indirectly, knowingly concerned in, or party to, the contravention by a person of this Code; or (f) conspiring with others to contravene this Code; the Supreme Court may, on the application of AFIC, a State supervisory authority or a person whose interests have been, are or would be affected by the conduct, grant an injunction restraining the person from engaging in the conduct and, if in the Court’s opinion it is desirable to do so, requiring the person to do anything. (2) If a person has failed, is failing, or is proposing to fail, to do anything that the person is required to do under this Code, the Supreme Court may, on the application of AFIC, a State supervisory authority or a person whose interests have been, are or would be affected by the failure to do the thing, grant an injunction requiring the person to do the thing. (3) If an application is made for an injunction under subsection (1) or (2), the Supreme Court may grant an injunction with the consent of all the parties to the proceeding, whether or not the Court is satisfied that the subsection applies. (4) The Supreme Court may grant an interim injunction pending determination of an application under subsection (1). (5) The Supreme Court may discharge or vary an injunction granted under this section, and may grant an injunction on conditions.

s 51 47 s 51 Australian Financial Institutions Commission Code (6) The power of the Supreme Court to grant an injunction restraining a person from engaging in conduct may be exercised— (a) whether or not it appears to the Court that the person intends to engage again, or to continue to engage, in the conduct; and (b) whether or not the person has previously engaged in conduct of that kind; and (c) whether or not there is an imminent danger of substantial damage to another person if the person engages, or continues to engage, in the conduct. (7) The power of the Supreme Court to grant an injunction requiring a person to do a thing may be exercised— (a) whether or not it appears to the Court that the person intends to fail again, or to continue to fail, to do the thing; and (b) whether or not the person has previously failed to do a thing of that kind; and (c) whether or not there is an imminent danger of substantial damage to another person if the person fails, or continues to fail, to do the thing. (8) If AFIC or a State supervisory authority applies to the Supreme Court for the grant of an injunction under this section, the Court must not require the applicant or another person, as a condition of the granting of an interim injunction, to give an undertaking as to damages. (9) If the Supreme Court has power under this section to grant an injunction restraining a person from engaging in particular conduct or requiring a person to do a particular thing, the Court may, either in addition to or in substitution for the grant of the injunction, order the person to pay damages to another person. (10) The Supreme Court’s powers under this section are in addition to its other powers. ˙ Obtaining information etc. from financial institutions 51.(1) AFIC may, if it is reasonably necessary for the purposes of—

s 51 48 s 51 Australian Financial Institutions Commission Code (a) in the case of a special services provider—the financial institutions legislation; or (b) in the case of any other financial institution—its function in relation to the supervision and control of industry funded liquidity support arrangements for societies; by written notice given to a financial institution, or a body corporate related to a financial institution, require the financial institution or body corporate— (c) to give to it, within a reasonable period and in a reasonable way specified in the notice, specified information and reports; and (d) to give to it, at the reasonable times and in a reasonable way specified in the notice, periodic reports on specific matters; and (e) to notify it, within the reasonable time and in a reasonable way specified in the notice, if— (i) a specified event or change of circumstances happens; or (ii) the financial institution or body corporate becomes aware that a specified event or change of circumstances is likely to happen. (2) A financial institution or body corporate that, without reasonable excuse, fails to comply with a requirement under subsection (1) to the extent that the financial institution or body corporate is capable of doing so commits an offence. Maximum penalty—$25 000. (3) It is not a reasonable excuse for a financial institution or body corporate to fail to comply with a requirement under subsection (1) that complying with the requirement might tend to incriminate the financial institution or body corporate. (4) The fact that information or a report or notification was given by a financial institution or body corporate under subsection (1) is not admissible in evidence against the financial institution or body corporate in a criminal proceeding (other than a proceeding in relation to the falsity of the information, report or notification) if— (a) the financial institution or body corporate before giving the information, report or notification (the “relevant action” )

s 52 49 s 52 Australian Financial Institutions Commission Code claimed that the relevant action might tend to incriminate the financial institution or body corporate; and (b) the relevant action might in fact tend to incriminate the financial institution or body corporate. ˙ Obtaining evidence 52.(1) AFIC may, if it is reasonably necessary for the purposes of the financial institutions scheme, by written notice given to a person, require the person— (a) to attend before an employee of AFIC, or a State supervisory authority, authorised for the purpose, at a reasonable time and place specified in the notice, and then and there answer questions; and (b) to produce to an employee of AFIC, or a State supervisory authority, authorised for the purpose, at a reasonable time and place specified in the notice, documents in the custody or under the person’s control. (2) An employee before whom a person attends under subsection (1)(a) may require answers to be verified or given on oath or affirmation, and either orally or in writing, and for that purpose the employee may administer an oath or affirmation. (3) The oath to be taken, or affirmation to be made, by a person for the purposes of this section is an oath or affirmation that the answers the person will give will be true. (4) An employee to whom a document is produced under subsection (1)— (a) may keep the document for 60 days or, if a prosecution for an offence against the fiscal bodies legislation of which the document may afford evidence is instituted within that period, until the completion of the proceeding for the offence and of any appeal in relation to the proceeding; and (b) while the employee has possession of the document, may take extracts from and make copies of the document, but must allow

s 53 50 s 53 Australian Financial Institutions Commission Code the document to be inspected at any reasonable time by a person who would be entitled to inspect it if it were not in the employee’s possession. (5) The regulations must prescribe scales of allowances and expenses to be allowed to persons required to attend under this section. (6) AFIC may authorise an employee for the purpose of subsection (1)(a) only if the person has, in AFIC’s opinion, the appropriate expertise for the purpose (whether because of training or otherwise). (7) A person who, without reasonable excuse, fails to comply with a requirement under subsection (1) to the extent that the person is capable of doing so commits an offence. Maximum penalty—$25 000. (8) It is not a reasonable excuse for a person to fail to comply with a requirement under subsection (1) that complying with the requirement might tend to incriminate the person. (9) An answer given by a person under subsection (1) is not admissible against the person in a criminal proceeding (other than a proceeding in relation to the falsity of the answer) if— (a) the person, before giving the answer, claimed that giving the answer might tend to incriminate the person; and (b) the answer might in fact tend to incriminate the person. (10) The fact that a document was produced by a person under subsection (1) is not admissible in evidence against the person in a criminal proceeding (other than a proceeding in relation to the falsity of the document) if— (a) the person, before producing the document, claimed that producing the document might tend to incriminate the person; and (b) producing the document might in fact tend to incriminate the person. ˙ Inspectors 53.(1) The executive director may authorise a person, or a class of

s 54 51 s 55 Australian Financial Institutions Commission Code persons, to exercise— (a) all the powers conferred by this Code on an inspector; or (b) any powers conferred by this Code on an inspector. (2) The executive director may cause an identity card to be issued to an inspector. (3) The identity card must— (a) contain a recent photograph of the inspector; and (b) be in a form approved by the executive director. (4) A person who ceases to be an inspector must, as soon as practicable, return his or her identity card to the executive director. Maximum penalty—$5000. (5) AFIC must, to the greatest extent practicable, use officers and employees of the State supervisory authorities as inspectors. ˙ Inspector to produce identity card 54. An inspector is not entitled to exercise powers under this part in relation to another person unless the inspector first produces the inspector’s identity card for inspection by the person. ˙ Entry and search—monitoring compliance 55.(1) An inspector may, for the purpose of finding out whether the requirements of this Code are being complied with— (a) enter any place; and (b) exercise the powers set out in section 57 (General powers of inspector in relation to places). (2) An inspector must not enter a place, or exercise a power under subsection (1), unless— (a) the place is premises occupied by a fiscal body, or a body corporate related to a fiscal body, and the entry is made when the premises are open for conduct of business or otherwise open for

s 56 52 s 56 Australian Financial Institutions Commission Code entry; or (b) the place is premises occupied by a banker or liquidator of a fiscal body, or a body corporate related to a fiscal body, and the entry is made when the premises are open for conduct of business or otherwise open for entry; or (c) the place is premises that are not occupied for residential purposes, the inspector believes on reasonable grounds that accounting records or other prescribed documents of, or any auditor’s or actuary’s working papers relating to, a fiscal body, or a body corporate related to a fiscal body, are kept or are to be found on the premises and the entry is made when the premises are open for conduct of business or otherwise open for entry; or (d) the occupier of the place consents to the entry or exercise of the power; or (e) a warrant under section 58 (Monitoring warrants) authorises the entry or exercise of the power. ˙ Entry and search—evidence of offences 56.(1) Subject to subsection (3), if an inspector has reasonable grounds for suspecting that there is in a place a particular thing ( “the evidence” ) that may afford evidence of the commission of an offence against this Code, the inspector may— (a) enter the place; and (b) exercise the powers set out in section 57 (General powers of inspector in relation to places). (2) If an inspector enters the place and finds the evidence, the following provisions have effect— (a) the inspector may seize the evidence; (b) the inspector may keep the evidence for 60 days or, if a prosecution for an offence against this Code in the commission of which the evidence may have been used or otherwise involved is instituted within that period, until the completion of the proceeding for the offence and of any appeal in relation to the

s 56 53 s 56 Australian Financial Institutions Commission Code proceeding; (c) if the evidence is a document—while the inspector has possession of the document, the inspector may take extracts from and make copies of the document, but must allow the document to be inspected at any reasonable time by a person who would be entitled to inspect it if it were not in the inspector’s possession. (3) An inspector must not enter the place or exercise a power under subsection (1) unless— (a) the occupier of the place consents to the entry or exercise of the power; or (b) a warrant under section 59 (Offence related warrants) that was issued in relation to the evidence authorises the entry or exercise of the power. (4) If, while searching the place under subsection (1) under a warrant under section 59 (Offence related warrants)— (a) an inspector finds a thing that the inspector believes, on reasonable grounds, to be— (i) a thing (other than the evidence) that will afford evidence of the commission of the offence mentioned in subsection (1); or (ii) a thing that will afford evidence of the commission of another offence against this Code; and (b) the inspector believes, on reasonable grounds, that it is necessary to seize the thing to prevent— (i) its concealment, loss or destruction; or (ii) its use in committing, continuing or repeating the offence mentioned in subsection (1) or the other offence, as the case may be; subsection (2) applies to the thing as if it were the evidence. (5) An inspector who seizes or damages anything under this section must give written notice of particulars of the thing or damage. (6) The notice must be given to—

s 57 54 s 57 Australian Financial Institutions Commission Code (a) if anything is seized—the person from whom the thing was seized; or (b) if damage is caused to anything—the person who appears to the inspector to be the owner. ˙ General powers of inspector in relation to places 57.(1) The powers an inspector may exercise under section 55(1)(b) (Entry and search—monitoring compliance) or 56(1)(b) (Entry and search—evidence of offences) in relation to a place are as follows— (a) to search any part of the place; (b) to inspect, examine or photograph anything in the place; (c) to take extracts from, and make copies of, any documents in the place; (d) to take into the place such equipment and materials as the inspector requires for the purpose of exercising any powers in relation to the place; (e) to require the occupier or any person in the place to give to the inspector reasonable assistance in relation to the exercise of an inspector’s powers mentioned in paragraphs (a) to (d). (2) A person must not, without reasonable excuse, fail to comply with a requirement under subsection (1)(e). Maximum penalty—$5000. (3) It is not a reasonable excuse for a person to fail to comply with a requirement under subsection (1)(e) on the ground of the privilege against self-incrimination. (4) If, under a requirement under subsection (1)(e), a person is required to answer a question or produce a document, the contents of the answer, or the fact of production of the document, is not admissible in evidence against the person in a criminal proceeding (other than a proceeding in relation to the falsity of the answer or document). (5) For the purposes of the application of subsection (4) to the production of a document, the contents of the document are to be disregarded.

s 58 55 s 59 Australian Financial Institutions Commission Code ˙ Monitoring warrants 58.(1) An inspector may apply to a magistrate for a warrant under this section in relation to a particular place. (2) Subject to subsection (3), the magistrate may issue the warrant if the magistrate is satisfied, by information on oath, that it is reasonably necessary that the inspector should have access to the place for the purpose of finding out whether the requirements of this Code are being complied with. (3) If the magistrate requires further information concerning the grounds on which the issue of the warrant is being sought, the magistrate must not issue the warrant unless the inspector or another person has given the information to the magistrate in the form (either orally or by affidavit) that the magistrate requires. (4) The warrant must— (a) authorise the inspector, with such assistance and by such force as is necessary and reasonable— (i) to enter the place; and (ii) to exercise the powers set out in section 57 (General powers of inspector in relation to places); and (b) state whether the entry is authorised to be made at any time of the day or night or during specified hours of the day or night; and (c) specify the day (not more than 6 months after the issue of the warrant) on which the warrant ceases to have effect; and (d) state the purpose for which the warrant is issued. ˙ Offence related warrants 59.(1) An inspector may apply to a magistrate for a warrant under this section in relation to a particular place. (2) Subject to subsection (3), the magistrate may issue the warrant if the magistrate is satisfied, by information on oath, that there are reasonable grounds for suspecting that there is, or there may be within the next 72 hours, in the place a particular thing ( “the evidence” ) that may afford

s 60 56 s 60 Australian Financial Institutions Commission Code evidence of the commission of an offence against this Code. (3) If the magistrate requires further information concerning the grounds on which the issue of the warrant is being sought, the magistrate must not issue the warrant unless the inspector or another person has given the information to the magistrate in the form (either orally or by affidavit) that the magistrate requires. (4) The warrant must— (a) authorise the inspector, with such assistance and by such force as is necessary and reasonable— (i) to enter the place; and (ii) to exercise the powers set out in section 57 (General powers of inspector in relation to places); and (iii) to seize the evidence; and (b) state whether the entry is authorised to be made at any time of the day or night or during specified hours of the day or night; and (c) specify the day (not more than 7 days after the issue of the warrant) on which the warrant ceases to have effect; and (d) state the purposes for which the warrant is issued. ˙ Offence related warrant may be granted by telephone 60.(1) If, because of urgent circumstances, an inspector considers it necessary to do so, the inspector may, under this section, apply by telephone for a warrant under section 59 (Offence related warrants). (2) Before applying for the warrant, the inspector must prepare information of the kind mentioned in section 59(2) that sets out the grounds on which the issue of the warrant is sought. (3) If it is necessary to do so, the inspector may apply for the warrant before the information has been sworn. (4) If a magistrate is satisfied— (a) after having considered the terms of the information; and (b) after having received such further information (if any) as the

s 60 57 s 60 Australian Financial Institutions Commission Code magistrate requires concerning the grounds on which the issue of the warrant is being sought; that there are reasonable grounds for issuing the warrant, the magistrate may, under section 59 (Offence related warrants), complete and sign such a warrant as the magistrate would issue under that section if the application had been made under that section. (5) If the magistrate completes and signs the warrant— (a) the magistrate must— (i) tell the inspector what the terms of the warrant are; and (ii) tell the inspector the date on which and the time at which the warrant was signed; and (iii) record on the warrant the reasons for granting the warrant; and (b) the inspector must— (i) complete a form of warrant in the same terms as the warrant completed and signed by the magistrate; and (ii) write on the form of warrant the name of the magistrate and the date on which and the time at which the magistrate signed the warrant. (6) The inspector must also, not later than the day after the day of expiry or execution of the warrant (whichever is the earlier), send to the magistrate— (a) the form of warrant completed by the inspector; and (b) the information mentioned in subsection (2), which must have been duly sworn. (7) When the magistrate receives the documents mentioned in subsection (6), the magistrate must— (a) attach them to the warrant that the magistrate completed and signed; and (b) deal with them in the way in which the magistrate would have dealt with the information if the application for the warrant had been made under section 59 (Offence related warrants).

s 61 58 s 62 Australian Financial Institutions Commission Code (8) A form of warrant duly completed by the inspector under subsection (5) is authority for any entry, search, seizure or other exercise of a power that the warrant signed by the magistrate authorises. (9) If— (a) it is material for a court to be satisfied that an entry, search, seizure or other exercise of power was authorised by this section; and (b) the warrant completed and signed by the magistrate authorising the exercise of power is not produced in evidence; the court must assume, unless the contrary is proved, that the exercise of power was not authorised by such a warrant. ˙ Obstruction etc. of inspectors 61. A person must not, without reasonable excuse, assault, obstruct, hinder or resist an inspector in the exercise of a power under this Code. Maximum penalty—$50 000, imprisonment for 7 years or both. ˙ False or misleading statements 62.(1) In this section— “relevant person” means a person exercising powers under this Code, and includes an inspector. (2) A person must not— (a) make a statement to AFIC or a relevant person that the person knows is false or misleading in a material particular; or (b) omit from a statement made to AFIC or a relevant person any thing without which the statement is, to the person’s knowledge, misleading in a material particular; or (c) give to AFIC or a relevant person a document containing information that the person knows is false, misleading or incomplete in a material particular without, at the same time— (i) indicating that the document is false, misleading or

s 63 59 s 63 Australian Financial Institutions Commission Code incomplete and the respect in which it is false, misleading or incomplete; and (ii) giving correct information if the person has, or can reasonably obtain, the correct information. Maximum penalty—$100 000, imprisonment for 15 years or both. ˙ Proceedings for offences 63.(1) AFIC, or a person authorised in writing by AFIC, may bring a proceeding for— (a) an offence against this Code; or (b) an offence against section 402(1) (Financial bodies to comply with standards) of the Financial Institutions Code for a contravention of a standard about industry funded liquidity support arrangements for societies; or (c) an offence against section 402(2) of the Financial Institutions Code. (1A) Before starting a proceeding for an offence mentioned in subsection (1)(b) or (c), AFIC must give written notice to the SSA. (1B) However, a failure to give the notice does not affect the validity of the proceeding. (2) A proceeding may be started within— (a) for an alleged offence not punishable by imprisonment—2 years; and (b) for an offence punishable by imprisonment—5 years; after the alleged offence is committed or, with the consent of the Ministerial Council, at any later time.

s 64 60 s 66 Australian Financial Institutions Commission Code † PART 9—REVIEW OF DECISIONS † Division 1—Appeals Tribunal ˙ Appeals Tribunal 64. The Appeals Tribunal is the Australian Financial Institutions Appeals Tribunal established under section 8 of the AFIC Act. † Division 2—Review of decisions ˙ Reviewable decisions 65.(1) Every decision of AFIC made under the fiscal bodies legislation is a reviewable decision. (2) Subsection (1) does not apply to— (a) a decision under— (i) part 4 (Standards); or (ii) part 6 (Industry funded liquidity support arrangements for societies); or (iii) part 7 (Provisions relating to state supervisory authorities); or (iv) part 8 (Enforcement powers); or (v) section 118 (Determination of AFIC’s budget); or (vi) section 119 (Administration levy); or (b) a decision prescribed by a regulation made for the purposes of this subsection. ˙ Application for review of decisions 66.(1) A person whose interests are affected by a reviewable decision may apply to the Appeals Tribunal for review of the decision.

s 67 61 s 69 Australian Financial Institutions Commission Code (2) The Appeals Tribunal has power to review any decision in relation to which application is duly made to it for review of the decision. ˙ Way of applying for review 67.(1) An application to the Appeals Tribunal for a review of a decision must be made to the tribunal— (a) in writing; and (b) within 28 days after the making of the decision. (2) The Appeals Tribunal may, on written application by a person, extend the time for the making by the person of an application to the tribunal for a review of the decision. (3) The time for making an application to the Appeals Tribunal for a review of a decision may be extended even though the time has ended. (4) The Appeals Tribunal must cause written notice of an application under subsection (1) or (2) in relation to a reviewable decision to be given to the person who made the decision. † Division 3—Membership of Appeals Tribunal ˙ Composition of Appeals Tribunal 68. The Appeals Tribunal consists of the chairperson and such number of deputy chairpersons and other members as are appointed under this Code. ˙ Appointment of members 69.(1) The members of the Appeals Tribunal are to be appointed by the Governor in Council of Queensland on the recommendation of the Ministerial Council. (2) The members of the Appeals Tribunal are to be appointed on a part-time basis. (3) The members are to be appointed under this Code, and not under the

s 70 62 s 73 Australian Financial Institutions Commission Code Public Service Act 1996 of Queensland. (4) Nothing in this Code prevents a member of the Appeals Tribunal holding any office or appointment approved by the Governor in Council of Queensland on the recommendation of the Ministerial Council. ˙ Qualifications for appointment 70.(1) A person is not eligible for appointment as chairperson or deputy chairperson of the Appeals Tribunal unless the person is a barrister, solicitor, barrister and solicitor or legal practitioner of the High Court or the Supreme Court of a State of not less than 5 years standing. (2) A person is not eligible for appointment as a non-presiding member of the Appeals Tribunal unless the person has had experience, for not less than 5 years, at a high level in industry, commerce, public administration, industrial relations, the practice of a profession or the service of a government or an authority of a government. ˙ Term of appointment 71. A member of the Appeals Tribunal is appointed for such term (not longer than 7 years) as is specified by the Governor in Council of Queensland in the instrument of appointment on the recommendation of the Ministerial Council. ˙ Terms and conditions of appointment 72.(1) A member of the Appeals Tribunal is to be paid such remuneration and allowances as are determined by the Ministerial Council. (2) A member of the Appeals Tribunal holds office on such terms and conditions not provided for by this Code (including terms and conditions relating to superannuation) as are determined by the Ministerial Council. ˙ Resignation 73. A member of the Appeals Tribunal may resign by signed notice given to the Governor of Queensland.

s 74 63 s 75 Australian Financial Institutions Commission Code ˙ Disclosure of interests 74.(1) If a member of the Appeals Tribunal is, or is to be, a member of the Appeals Tribunal as constituted for the purposes of a proceeding and the member has or acquires an interest (whether pecuniary or otherwise) that could conflict with the proper performance of the member’s functions in relation to the proceeding— (a) the member must disclose the interest to the parties to the proceeding; and (b) except with the consent of all parties to the proceeding—the member must not take part in the proceeding or exercise any powers in relation to the proceeding. (2) If the chairperson of the Appeals Tribunal becomes aware that a member of the tribunal who is, or is to be, a member of the tribunal as constituted for the purposes of a proceeding, has, in relation to the proceeding, an interest of the kind mentioned in subsection (1)— (a) if the chairperson considers that the member should not take part, or continue to take part, in the proceeding—the chairperson must direct the member accordingly; or (b) in any other case—the chairperson must cause the interest of the member to be disclosed to the parties to the proceeding if the interest has not already been disclosed to them. ˙ Termination of appointment 75. The Governor in Council of Queensland may, on the recommendation of the Ministerial Council, terminate the appointment of a member of the Appeals Tribunal if the member— (a) becomes mentally or physically incapable of performing satisfactorily the duties of office; or (b) is convicted of an indictable offence (whether in this State or elsewhere); or (c) is guilty of misconduct; or (d) contravenes section 74 (Disclosure of interests) or a direction given under that section.

s 76 64 s 77 Australian Financial Institutions Commission Code ˙ Acting chairperson 76. The Governor in Council of Queensland may, on the recommendation of the Ministerial Council, appoint a person to act as chairperson of the Appeals Tribunal— (a) during a vacancy in the office; or (b) during any period, or all periods, when the chairperson is absent from duty or from Australia or is, for any other reason, unable to perform the functions of the office. † Division 4—Organisation of Appeals Tribunal ˙ Arrangement of business 77.(1) Subject to section 78 (Constitution of Appeals Tribunal), the chairperson of the Appeals Tribunal may give directions as to the arrangement of the business of the tribunal and as to the members who are to constitute the tribunal for the purposes of particular proceedings. (2) If the chairperson gives a direction as to the members who are to constitute the tribunal for the purposes of a particular proceeding, the chairperson may— (a) at any time after giving the direction and before the start of the hearing of the proceeding; or (b) if, in the case of a proceeding before the tribunal constituted by 3 members, 1 of those members ceases to be a member, or ceases to be available for the purposes of the proceeding, during the hearing of the proceeding or after the completion of the hearing but before the matter to which the proceeding relates is determined—at any time after the member ceases to be a member or to be available; revoke the direction and give a further direction under subsection (1) as to the persons who are to constitute the tribunal for the purposes of the proceeding. (3) In giving a direction under this section as to the members who are to constitute the tribunal for the purposes of a particular proceeding, the

s 78 65 s 80 Australian Financial Institutions Commission Code chairperson must have regard— (a) to the degree of public importance or complexity of the matters to which the proceeding relates; and (b) the need for the tribunal’s affairs to be conducted expeditiously and efficiently; and (c) the nature of the issues likely to be involved in the proceeding. ˙ Constitution of Appeals Tribunal 78.(1) Subject to section 80 (Member ceasing to be available), the Appeals Tribunal is to be constituted for the purposes of the hearing and determination of a proceeding by— (a) a presiding member; or (b) a non-presiding member; or (c) subject to subsection (2), a presiding member and 2 non-presiding members. (2) The tribunal may be constituted for the exercise of powers in relation to the hearing of a proceeding, or for the purposes other than the hearing and determination of a proceeding, by a presiding member or a non-presiding member. ˙ Member presiding 79. At the hearing of a proceeding before the Appeals Tribunal at which the tribunal is constituted for the purposes of the proceeding by more than 1 member, the presiding member is to preside unless another member is directed under section 80 (Member ceasing to be available) to preside. ˙ Member ceasing to be available 80.(1) If the hearing of a proceeding has been started or completed by the Appeals Tribunal constituted by 3 members but, before the matter to which the proceeding relates has been determined, 1 of the members constituting the tribunal ceases to be a member, or ceases to be available for the purposes of the proceeding—

s 81 66 s 82 Australian Financial Institutions Commission Code (a) if the parties agree and the chairperson does not give a direction under section 77 (Arrangement of business)—the hearing and determination, or the determination, of the proceeding may be completed by the tribunal constituted by the remaining members or member; or (b) in any other case—the proceeding is to be reheard by the tribunal as reconstituted under section 78 (Constitution of Appeals Tribunal). (2) If the member who ceases to be a member, or ceases to be available for the purposes of the proceeding, is the member who is, but for this subsection, to preside, the chairperson may, in writing, appoint 1 of the remaining members, or the remaining member, to preside. (3) If a proceeding is reheard by the tribunal, the tribunal may, for the purposes of the proceeding, have regard to any record of the proceeding before the tribunal as previously constituted, including any evidence taken in the proceeding. ˙ Sitting places 81. Sittings of the Appeals Tribunal may be held from time to time as required at any place in Australia. † Division 5—Conduct of proceedings before Appeals Tribunal ˙ Parties to proceeding before Appeals Tribunal 82.(1) Subject to section 92 (Power of Appeals Tribunal to dismiss claim or strike out party), the parties to a proceeding for review of a decision are— (a) any person who has duly applied to the tribunal for a review of the decision; and (b) the person who made the decision; and (c) any other person who has been made a party to the proceeding by the tribunal on application by the person under subsection (2).

s 83 67 s 85 Australian Financial Institutions Commission Code (2) If an application has been made by a person for review of a decision, any other person whose interests are affected by the decision may apply, in writing, to the tribunal to be made a party to the proceeding and the tribunal may, by order, make the person a party to the proceeding. (3) A party to a proceeding may be described by an official name. ˙ Appeals Tribunal to determine who are interested persons 83.(1) If it is necessary for the purposes of this Code to decide whether the interests of a person are affected by a decision, the matter is to be decided by the Appeals Tribunal. (2) If the tribunal decides that a person’s interests are not affected by a decision, the tribunal must give the person written reasons for its decision. ˙ Representation before Appeals Tribunal 84. At the hearing of a proceeding before the Appeals Tribunal, a party to the proceeding may appear in person or be represented by some other person (whether or not the person is enrolled as a barrister, solicitor, barrister and solicitor or legal practitioner of the High Court or the Supreme Court of a State). ˙ Procedure of Appeals Tribunal 85.(1) In a proceeding before the Appeals Tribunal— (a) the procedure of the tribunal is, subject to the fiscal bodies legislation, within the discretion of the tribunal; and (b) the proceeding is to be conducted with as little formality and technicality, and with as much expedition, as the requirements of the fiscal bodies legislation and a proper consideration of the matters before the tribunal permit; and (c) the tribunal is not bound by the rules of evidence and may inform itself on any matter in any way that it considers appropriate; and (d) the tribunal must observe the rules of natural justice. (2) For the purposes of subsection (1), directions as to the procedure to

s 86 68 s 86 Australian Financial Institutions Commission Code be followed at or in connection with the hearing of a proceeding before the tribunal may be given— (a) if the hearing of the proceeding has not started—by the chairperson or by a presiding member authorised by the chairperson to give procedural directions; and (b) if the hearing of the proceeding has started—by the member presiding at the hearing or by another member authorised by the member presiding to give procedural directions. (3) A direction may be varied or revoked by a member empowered to give the direction. (4) An authorisation by the chairperson may be of general application or may relate to the hearing of a particular proceeding or class of proceedings. (5) The chairperson may vary or revoke an authorisation. ˙ Conferences 86.(1) If an application is made to the Appeals Tribunal for review of a decision, the chairperson may direct the holding of a conference of the parties presided over by a presiding member. (2) If a conference is held under subsection (1) and— (a) at or after the conference, agreement is reached between the parties as to the terms of a decision of the tribunal in the proceeding that would be acceptable to the parties; and (b) the terms of the agreement are reduced to writing, signed by the parties and given to the tribunal; and (c) the tribunal is satisfied that— (i) a decision in those terms would be within the powers of the tribunal; and (ii) it would be appropriate to make a decision in those terms; the tribunal may, without holding a hearing, make a decision in accordance with those terms. (3) At the hearing of a proceeding before the tribunal, unless the parties

s 87 69 s 87 Australian Financial Institutions Commission Code otherwise agree, evidence must not be given, and statements must not be made, about anything that happens at a conference held under subsection (1) in relation to the proceeding. (4) If— (a) a conference held under subsection (1) in relation to a proceeding is presided over by a member of the tribunal; and (b) a party to the proceeding who was present at the conference notifies the tribunal before, or at the start of, the hearing that the party objects to the member participating in the hearing; the member is not entitled to be a member of the tribunal as constituted for the purposes of the proceeding. ˙ Hearings to be in private unless all parties agree etc. 87.(1) The hearing of a proceeding before the Appeals Tribunal is to be in private unless all the parties agree to the hearing being held in public. (2) The tribunal may, by order, give direction as to the persons who may be present at a hearing held in private. (3) If the tribunal is satisfied that it is desirable to do so because of the confidential nature of any evidence or matter or for any other reason, the tribunal may, by order— (a) give directions prohibiting or restricting the publication of evidence given before the tribunal (whether in public or private), or of matters contained in documents filed with the tribunal or received in evidence by the tribunal; or (b) give directions prohibiting or restricting the disclosure to some or all of the parties to a proceeding of evidence given before the tribunal, or of matters contained in documents filed with the tribunal or received in evidence by the tribunal. (4) In considering whether publication, or disclosure to a party, of evidence, or of a matter contained in a document or received in evidence, should be prohibited or restricted, the tribunal is to take as the basis of its consideration the principle that evidence given before the tribunal and the contents of documents lodged with the tribunal or received in evidence by

s 88 70 s 89 Australian Financial Institutions Commission Code the tribunal should be made available to all the parties, but must pay due regard to any reasons given to the tribunal why publication or disclosure of the evidence or matter should be prohibited or restricted. ˙ Opportunity to make submissions 88. Subject to section 87 (Hearings to be held in private unless all parties agree etc.), the Appeals Tribunal must ensure that every party to a proceeding before the tribunal is given a reasonable opportunity to present the party’s case and, in particular, to inspect any documents to which the tribunal proposes to have regard in reaching a decision in the proceeding and to make submissions in relation to the documents. ˙ Particular powers of Appeals Tribunal 89.(1) For the purpose of a proceeding, the Appeals Tribunal may— (a) take evidence on oath or affirmation; or (b) proceed in the absence of a party who has had reasonable notice of the proceeding; or (c) adjourn the proceeding from time to time. (2) For the purposes of the hearing of a proceeding, a presiding member may summon a person to appear before the tribunal to give evidence and to produce such documents (if any) as are specified in the summons. (3) The member who presides at the hearing of a proceeding— (a) may require a person appearing before the tribunal to give evidence either to take an oath or to make an affirmation; and (b) may administer an oath or affirmation to a person appearing before the tribunal. (4) The oath or affirmation to be taken or made by a person for the purposes of this section is an oath or affirmation that the evidence the person will give will be true. (5) The tribunal may permit a person appearing as a witness before the tribunal to give evidence by tendering a written statement, verified, if the tribunal directs, by oath or affirmation.

s 90 71 s 91 Australian Financial Institutions Commission Code ˙ Operation and implementation of a decision that is subject to review 90.(1) Subject to subsection (2), the making of an application to the Appeals Tribunal for review of a decision does not affect the operation of the decision or prevent the taking of action to implement the decision. (2) The Appeals Tribunal may, on written application by a party to a proceeding, make an order staying or otherwise affecting the operation or implementation of the whole or a part of the decision to which the proceeding relates if the tribunal— (a) is of the opinion that it is desirable to do so after taking into account the interests of any persons who may be affected by the review; and (b) considers it appropriate to do so for the purpose of securing the effectiveness of the hearing and determination of the application for review. (3) An order under this section— (a) may, by order, be varied or revoked; and (b) is subject to such conditions as are specified in the order; and (c) has effect until— (i) the end of the period of operation (if any) specified in the order; or (ii) the decision of the Appeals Tribunal on the application for review comes into operation; whichever is the earlier. (4) The Appeals Tribunal must not make an order under this section unless each party to the proceeding has been given a reasonable opportunity to make submissions in relation to the matter. ˙ Way in which questions to be decided 91.(1) A question of law arising in a proceeding before the Appeals Tribunal at which a presiding member is presiding (including the question whether a particular question is one of law) is to be decided in accordance with the opinion of the member presiding.

s 92 72 s 94 Australian Financial Institutions Commission Code (2) If a question of law arises in a proceeding before the Appeals Tribunal constituted by a non-presiding member, the non-presiding member may refer the question to the chairperson and, if the non-presiding member does so, the non-presiding member must decide the question in accordance with the opinion of the chairperson. (3) Subject to subsection (1), when the members constituting the tribunal for the purposes of a particular proceeding are divided in opinion as to the decision to be made on any question— (a) if there is a majority of the one opinion—the question is to be decided according to the opinion of the majority; or (b) in any other case—the question is to be decided according to the opinion of the member presiding. ˙ Power of Appeals Tribunal to dismiss claim or strike out party 92. If a party to a proceeding before the Appeals Tribunal who has had reasonable notice of the proceeding fails either to appear at a conference under section 86(1) or at the hearing of the proceeding, the tribunal may— (a) if the only other party to the proceeding is the person who made the decision—dismiss the application concerned; or (b) in any other case—direct that the person who failed to appear is to cease to be a party to the proceeding. ˙ General powers 93. For the purpose of a proceeding, the Appeals Tribunal may do all other things necessary or convenient to be done for or in connection with the hearing and determination of the proceeding. ˙ Review by tribunal 94.(1) For the purpose of reviewing a decision, the Appeals Tribunal may exercise all the powers that are conferred by the fiscal bodies legislation on the person who made the decision. (2) The Appeals Tribunal must make a decision in writing—

s 95 73 s 96 Australian Financial Institutions Commission Code (a) affirming the decision under review; or (b) varying the decision under review; or (c) setting aside the decision under review and— (i) making a decision in substitution for the decision set aside; or (ii) remitting the matter for reconsideration in accordance with any directions or recommendations of the tribunal. (3) A decision of the Appeals Tribunal comes into effect when it is made or, if a later day is specified in the decision, that day. ˙ Reasons to be given by Appeals Tribunal 95.(1) Subject to this section and to section 87 (Hearings to be in private unless all parties agree etc.), the Appeals Tribunal must give written reasons for its decision on a review. (2) The reasons must include its findings on material questions of fact and a reference to the evidence or other material on which those findings were based. (3) The tribunal must cause a written copy of its reasons to be given to each party to the proceeding. ˙ Appeals from decisions of Appeals Tribunal 96.(1) A party to a proceeding before the Appeals Tribunal may appeal to the Court, on a question of law, from any decision of the tribunal in the proceeding. (2) If— (a) a person has applied to the Appeals Tribunal— (i) for review of a decision; or (ii) to be made a party to a proceeding before the tribunal; and (b) the tribunal decides that the interests of the person are not affected by the decision;

s 97 74 s 97 Australian Financial Institutions Commission Code the person may appeal to the Court from the decision of the tribunal. (3) An appeal from a decision of the Appeals Tribunal must be made to the Court— (a) within 28 days after the making of the decision; and (b) in accordance with any applicable Rules of Court made by the Court and any regulations made for the purposes of this section. (4) The Court may extend the time for instituting the appeal. (5) The time for instituting the appeal may be extended even though the time has ended. (6) The Court must hear and determine an appeal duly made under this section, and may make such orders as it considers appropriate. (7) Without limiting subsection (6), the orders that may be made by the Court on an appeal include— (a) an order affirming a decision of the Appeals Tribunal; and (b) an order setting aside a decision of the Appeals Tribunal and— (i) making a decision in substitution for the decision set aside; or (ii) remitting the matter for reconsideration in accordance with any directions of the Court. ˙ Operation and implementation of a decision subject to appeal 97.(1) Subject to subsection (2), the institution of an appeal to the Court from a decision of the Appeals Tribunal does not affect the operation of the decision or prevent the taking of action to implement the decision. (2) The Court may make an order staying or otherwise affecting the operation or implementation of— (a) the whole or a part of the decision of the Appeals Tribunal; or (b) the whole or a part of the decision to which the proceeding before the Appeals Tribunal related; if the Court considers it appropriate to do so for the purpose of securing the

s 98 75 s 99 Australian Financial Institutions Commission Code effectiveness of the hearing and determination of the appeal. (3) An order under this section— (a) may, by order, be varied or revoked; and (b) is subject to such conditions as are specified in the order; and (c) has effect until— (i) the end of the period of operation (if any) specified in the order; or (ii) the giving of the decision of the Court on the appeal; whichever is the earlier. ˙ Reference of questions of law 98.(1) The Appeals Tribunal may, at the request of a party or of its own initiative, refer a question of law arising in a proceeding before the tribunal to the Court for decision. (2) A question is not to be referred without the agreement of the presiding member (if any) who is presiding or the chairperson of the tribunal. (3) If a question arising in a proceeding before the Appeals Tribunal has been referred to the Court, the tribunal must not, in the proceeding— (a) give a decision to which the question is relevant while the reference is pending; or (b) proceed in a way, or make a decision, that is inconsistent with the decision of the Court on the question. ˙ Costs 99.(1) Each party to a proceeding is to bear the party’s own costs of the proceeding unless the Appeals Tribunal otherwise directs. (1A) The Appeals Tribunal may also direct the parties to the proceeding to pay to it the amount prescribed by regulation or, if no amount is prescribed, a reasonable amount, for the costs of conducting the proceeding.

s 100 76 Australian Financial Institutions Commission Code s 102 (2) A direction under subsection (1) or (1A) may be registered in a court having jurisdiction for the recovery of debts up to the amount ordered to be paid by or under the direction. (3) Proceedings for the enforcement of a direction under subsection (1) or (1A) may be taken as if the direction were a judgment of the court in which the direction is registered. ˙ Protection of members etc. 100.(1) A member of the Appeals Tribunal has, in the performance of the member’s duties as a member, the same protection and immunity as a Judge of the High Court. (2) A person representing a party before the Appeals Tribunal has the same protection and immunity as a barrister has in appearing for a party in a proceeding in the High Court. (3) A person summoned to attend or appearing before the Appeals Tribunal as a witness has the same protection as a witness in a proceeding in the High Court. ˙ Failure of witness to attend 101. A person served, as prescribed, with a summons to appear as a witness before the Appeals Tribunal must not, without reasonable excuse— (a) fail to attend as required by the summons; or (b) fail to appear from time to time in the course of the proceeding as required by the presiding member. Maximum penalty—$25 000. ˙ Refusal of witness to be sworn or answer questions etc. 102.(1) A person appearing as a witness at a hearing of the Appeals Tribunal must not, without reasonable excuse— (a) fail to be sworn or to make an affirmation; or (b) fail to answer a question that the person is required to answer by

s 103 77 Australian Financial Institutions Commission Code s 105 the presiding member; or (c) fail to produce a document that the person was required to produce by a summons served on the person as prescribed. Maximum penalty—$25 000. (2) It is a reasonable excuse for a person to fail to answer a question if answering the question might tend to incriminate the person. (3) It is a reasonable excuse for a person to fail to produce a document if producing the document might tend to incriminate the person. ˙ False or misleading evidence 103. A person appearing as a witness before the Appeals Tribunal must not knowingly give evidence that is false or misleading. Maximum penalty—$25 000. ˙ Contempt of tribunal 104. A person must not— (a) insult a member of the Appeals Tribunal in relation to the performance of his or her functions as a member; or (b) interrupt a proceeding of the Appeals Tribunal; or (c) create a disturbance, or take part in creating or continuing a disturbance, in or near a place where the Appeals Tribunal is sitting; or (d) do anything that would, if the Appeals Tribunal were a court of record, constitute a contempt of that court. Maximum penalty—$25 000. ˙ Obstructing tribunal 105. A person must not obstruct or improperly influence the conduct of a hearing of the Appeals Tribunal or attempt to do so. Maximum penalty—$25 000.

s 106 78 Australian Financial Institutions Commission Code s 107 ˙ Person not to contravene order 106. A person must not contravene an order under section 87(2) (Hearings to be in private unless all parties agree etc.). Maximum penalty—$25 000. ˙ Confidential information not to be disclosed 107.(1) In this section— “court” includes any tribunal, authority or person having power to require the production of documents or the answering of questions; “person to whom this section applies” means a person who is or has been— (a) a member of the Appeals Tribunal; or (b) a member of the staff of the Appeals Tribunal; “produce” includes permit access to. (2) A person to whom this section applies is not required to give evidence to a court relating to a matter if— (a) the giving of the evidence would be contrary to an order of the Appeals Tribunal in force under section 87(2) (Hearings to be in private unless all parties agree etc.); or (b) an application has been made to the Appeals Tribunal for an order under that subsection concerning the matter to which the evidence would relate and the tribunal has not determined the application. (3) A person to whom this section applies is not required to produce in court a document given to the Appeals Tribunal in connection with a proceeding if— (a) the production of the document would be contrary to an order of the tribunal in force under section 87(2) (Hearings to be in private unless all parties agree etc.); or (b) an application has been made to the tribunal for an order under that subsection in relation to the document and the tribunal has not determined the application.

s 108 79 Australian Financial Institutions Commission Code s 111 (4) A person to whom this section applies is not required to give evidence to a court in relation to a proceeding before the Appeals Tribunal. ˙ Allowances for witnesses 108. A witness summoned to appear at a hearing of the Appeals Tribunal is entitled to be paid such allowances and expenses— (a) as are prescribed; or (b) in the absence of regulations, as the chairperson of the tribunal determines. † Division 6—Miscellaneous ˙ Management of administrative affairs of tribunal 109. The chairperson of the Appeals Tribunal is responsible for managing the administrative affairs of the tribunal. ˙ Appeals Tribunal’s employees 110. The chairperson of the Appeals Tribunal may, on behalf of the State of Queensland, engage such employees as the chairperson considers necessary for the performance of the tribunal’s functions. ˙ Terms and conditions of employment 111.(1) Subject to any relevant award or industrial agreement, the terms and conditions of employment of the Appeals Tribunal’s employees engaged under section 110 (Appeals Tribunal’s employees) are as determined by the chairperson of the Appeals Tribunal. (2) The Appeal Tribunal’s employees are to be employed under this Code, and not under the Public Service Act 1996 of Queensland. (3) In this section— “terms and conditions of employment” includes terms and conditions relating to duration of employment and termination of employment.

s 112 80 Australian Financial Institutions Commission Code s 115 ˙ Arrangements relating to staff 112.(1) The chairperson of the Appeals Tribunal may arrange with the chief executive of a department of government in this State, or with an authority of this State, for the services of officers or employees of the department or authority to be made available to the Appeals Tribunal. (2) The chairperson of the Appeals Tribunal may arrange with the appropriate authority of the Commonwealth or another State, or with an authority of the Commonwealth or another State, for the services of officers or employees of the public service of the Commonwealth or State, or of the authority, to be made available to the Appeals Tribunal. (3) The chairperson of the Appeals Tribunal may arrange for the services of an employee of the Appeals Tribunal to be made available to the Commonwealth or a State or to an authority of the Commonwealth or a State. ˙ Consultants to tribunal 113. The Appeals Tribunal may, on behalf of the State of Queensland, engage persons having suitable qualifications and experience as consultants to the tribunal. ˙ Annual report 114. The chairperson of the Appeals Tribunal must, not later than 4 months after the end of each financial year, prepare and give to the Ministerial Council a report on the operations of the tribunal during the year. ˙ Delegation of powers by chairperson 115. The chairperson of the Appeals Tribunal may delegate his or her powers under the fiscal bodies legislation to another presiding member of the tribunal.

s 116 81 Australian Financial Institutions Commission Code s 116 † PART 10—ACCOUNTABILITY AND FINANCIAL MATTERS ˙ Annual reports and financial statements 116.(1) In this section— “Legislative Assembly” means the Legislative Assembly of Queensland; “Premier” means the Premier of Queensland. (2) The board must, as soon as practicable after the end of each financial year, but not later than 4 months after the end of that year, prepare and give to the Ministerial Council a written report on the operations of AFIC during the year, together with financial statements for the year. (3) The financial statements are to be in a form approved by the Ministerial Council. (4) Before submitting the financial statements to the Ministerial Council, the board must submit them to the Auditor-General of Queensland, who must report to the Ministerial Council and the board— (a) whether the auditor-general has received all the information and explanations that AFIC was required to provide; and (b) whether, in the auditor-general’s opinion, the statements are based on proper accounts and records; and (c) whether the statements are in agreement with the accounts and records and, in the auditor-general’s opinion, show fairly the financial transactions and state of affairs of AFIC; and (d) as to any other matters arising out of the statements the auditor-general considers should be reported to the Ministerial Council. (5) The Premier must cause a copy of the report and financial statements, together with a copy of the auditor-general’s report, to be laid before the Legislative Assembly within 14 days after their receipt by the Ministerial Council. (6) If, at the time the Premier would otherwise be required to lay a copy of those documents before the Legislative Assembly, the Legislative

s 117 82 Australian Financial Institutions Commission Code s 118 Assembly is not sitting, the Premier must give a copy of the documents to the Clerk of the Parliament of Queensland. (7) The clerk must cause a copy of the documents to be laid before the Legislative Assembly on its next sitting day. (8) For the purposes of their printing and publication, the documents are taken to have been laid before the Legislative Assembly, and to have been ordered printed by the Legislative Assembly, when they are given to the clerk. ˙ Board to keep Ministerial Council informed 117. (1) The board must keep the Ministerial Council informed of— (a) the operations of AFIC; and (b) the operation, administration and enforcement of the financial institutions scheme. (2) The board must give the Ministerial Council such reports and information in relation to those matters as the Ministerial Council requires. ˙ Determination of AFIC’s budget 118.(1) AFIC must prepare and submit to the Ministerial Council a draft budget for each financial year in such form, and at such time, as the Ministerial Council directs. (2) The Ministerial Council must determine AFIC’s budget for the financial year within 60 days after the draft budget is submitted to it. (3) If the Ministerial Council does not determine AFIC’s budget within that period, the Ministerial Council is taken to have determined that AFIC’s budget for the financial year is to be the draft budget submitted to it. (4) AFIC must authorise expenditure only in accordance with the budget determined by the Ministerial Council unless the Ministerial Council otherwise directs.

s 119 83 Australian Financial Institutions Commission Code s 119 ˙ Administration levy 119.(1) When AFIC’s budget for a financial year has been determined, the board must, by resolution, determine the administration levy that is to be paid by fiscal bodies to fund its budget. (2) The amount of the levy may be fixed by the board as— (a) a specified amount; or (b) a specified percentage of an amount to be determined, on a specified day, by reference to specified factors relating to fiscal bodies (including, for example, factors such as paid-up capital, reserves, obligations and debts and total assets); or (c) both a specified amount and such a specified percentage. (3) If the levy is fixed, wholly or partly, as mentioned in subsection (2)(b), the board may include in the resolution directions as to the way in which the levy is to be determined. (4) The board may— (a) fix the amount of the levy differently for different fiscal bodies; and (b) determine that the levy is not payable by specified fiscal bodies. (5) The board may, in the resolution, require the levy to be paid in 1 amount by a specified time or permit the levy to be paid by specified instalments. (6) If the board permits the levy to be paid by instalments, it may, in the resolution, allow a discount for payment in 1 amount by a specified time or require payment of an additional amount or percentage, by way of interest, in the instalments. (7) The board may, in the resolution, require the payment of amounts, by way of late payment charge, interest or both, in relation to amounts of levy that are not paid as required by the resolution. (8) The board may include in the resolution directions as to the way in which amounts of late payment charge and interest are to be determined.

s 120 84 Australian Financial Institutions Commission Code s 120 ˙ Collection of administration levy 120.(1) When the board makes a resolution for the purposes of section 119 (Administration levy), it must immediately notify each State supervisory authority of the making of the resolution and give each State supervisory authority a copy of the resolution. (2) Each State supervisory authority must immediately— (a) determine the amount of the levy payable by each fiscal body for whose supervision it is responsible; and (b) notify each of those fiscal bodies of the amount of the levy payable by it and of the terms of the board’s resolution so far as they are applicable to the fiscal body. (3) It is the duty of each State supervisory authority to collect amounts of levy payable by fiscal bodies for whose supervision it is responsible, and to remit the amounts promptly to AFIC. (4) Amounts of levy that it is the duty of a State supervisory authority to collect are, when they are due and payable, debts due and payable by the fiscal body concerned to the State supervisory authority, and may be sued for and recovered in a court having jurisdiction for the recovery of debts up to the amount concerned. (5) A State supervisory authority may, on the application of a fiscal body and subject to any guidelines given to it by the board, vary— (a) an amount of levy payable by the fiscal body; or (b) the time within which an amount of levy is payable by the fiscal body. (6) An amount paid by a fiscal body as levy is treated as an expense in the accounts of the body. (7) In subsections (3) to (6)— “levy” includes late payment charge and interest in relation to levy.

s 121 85 Australian Financial Institutions Commission Code s 124 † PART 11—THE BOARD OF AFIC † Division 1—Meetings of the board ˙ Interpretation—meaning of “required minimum number of directors” 121. In this division— “required minimum number of directors” means— (a) if there are 8 or 9 directors—5 directors; and (b) in any other case—4 directors. ˙ Times and places of meetings 122.(1) Subject to subsection (2), meetings of the board are to be held at such times and places as the board determines. (2) The chairperson— (a) may at any time convene a meeting; and (b) must convene a meeting when requested by the required minimum number of directors. ˙ Presiding at meetings 123.(1) The chairperson is to preside at all meetings at which the chairperson is present. (2) If the chairperson is not present at a meeting, but the deputy chairperson is present, the deputy chairperson is to preside. (3) If the chairperson and deputy chairperson are not present at a meeting, the directors present are to appoint 1 of them to preside. ˙ Quorum and voting at meetings 124.(1) At a meeting of the board— (a) subject to subsection (2), the required minimum number of

s 125 86 Australian Financial Institutions Commission Code s 126 directors constitutes a quorum; and (b) a question is to be decided by a majority of votes of the directors present and voting; and (c) the director presiding has a deliberative vote and, if there is an equality of votes, also has a casting vote. (2) If, because of section 128(2) (Disclosure of interests), a director is not present at a meeting of the board during a deliberation of the board in relation to a matter, but there would be a quorum if the director were present, the remaining directors present constitute a quorum for the purpose of any deliberation or decision of the board at the meeting in relation to the matter. ˙ Conduct of meetings 125.(1) The board may, subject to this division, regulate its proceedings as it considers appropriate. (2) Without limiting subsection (1), the board may permit directors to participate in a particular meeting, or all meetings, by— (a) telephone; or (b) closed-circuit television; or (c) any other means of communication. (3) A director who participates in a meeting of the board under a permission under subsection (2) is taken to be present at the meeting. (4) Without limiting subsection (1), the board may invite a person to attend a meeting for the purpose of advising or informing it on any matter. ˙ Resolutions without meetings 126.(1) If at least the required minimum number of directors sign a document containing a statement that they are in favour of a resolution in terms set out in the document, a resolution in those terms is to be taken to have been passed at a meeting of the board held on the day on which the document is signed or, if the directors do not sign it on the same day, on the day on which the last of the required minimum number of directors signs

s 127 87 Australian Financial Institutions Commission Code s 128 the document. (2) If a resolution is, under subsection (1), taken to have been passed at a meeting of the board, each director must immediately be advised of the matter and given a copy of the terms of the resolution. (3) For the purposes of subsection (1), 2 or more separate documents containing a statement in identical terms, each of which is signed by 1 or more directors, is taken to constitute 1 document. ˙ Minutes 127. The board must keep minutes of its proceedings. ˙ Disclosure of interests 128.(1) If— (a) a director has a direct or indirect pecuniary interest in a matter being considered, or about to be considered, by the board; and (b) the interest could conflict with the proper performance of the director’s duties in relation to consideration of the matter; the director must, as soon as practicable after the relevant facts come to the director’s knowledge, disclose the nature of the interest to a meeting of the board. (2) A disclosure under subsection (1) must be recorded in the minutes of the meeting and, unless the board otherwise determines, the director must not— (a) be present during any deliberation of the board in relation to the matter; or (b) take part in any decision of the board in relation to the matter. (3) For the purpose of the making of a determination by the board under subsection (2) in relation to a director who has made a disclosure under subsection (1), a director who has a direct or indirect pecuniary interest in the matter to which the disclosure relates must not— (a) be present during any deliberation of the board for the purpose of

s 129 88 Australian Financial Institutions Commission Code s 130 making the determination; or (b) take part in the making by the board of the determination. ˙ Exclusion of executive director from certain deliberations 129.(1) The executive director must not be present during any deliberation of the board, or take part in any decision of the board, in relation to— (a) the appointment of a person as executive director; or (b) the determination or application of any terms or conditions on which the executive director holds office; or (c) the termination of the appointment of the executive director. (2) A person appointed to act as executive director must not be present during any deliberation of the board, or take part in any decision of the board, in relation to— (a) the appointment of a person to act as executive director; or (b) the determination or application of any terms or conditions on which a person appointed to act as executive director holds office; or (c) the termination of the appointment of the person. † Division 2—Provisions relating to directors other than the executive director ˙ Division applies to directors other than executive director 130. This division applies to the directors other than the executive director.

s 131 89 Australian Financial Institutions Commission Code s 136 ˙ Appointments made by Governor in Council of Queensland on nomination 131. The directors are to be appointed by the Governor in Council of Queensland on the nomination of the Ministerial Council. ˙ Restriction on appointments 132. A person who holds an office or appointment with a fiscal body must not be appointed as a director. ˙ Directors appointed under Code 133. A director is to be appointed under this Code, and not under the Public Service Act 1996 of Queensland. ˙ Appointment not invalid because of appointment defect etc. 134. The appointment of a person as a director is not invalid merely because of a defect or irregularity in relation to the appointment. ˙ Term of appointment 135. A director holds office, subject to this Code, for such term (not longer than 5 years) as is specified by the Governor in Council of Queensland in the instrument of appointment on the recommendation of the Ministerial Council. ˙ Terms and conditions of appointment 136.(1) A director is to be paid such remuneration and allowances as are determined by the Ministerial Council. (2) A director holds office on such terms and conditions not provided for by this Code (including terms and conditions relating to superannuation) as are determined by the Ministerial Council.

s 137 90 Australian Financial Institutions Commission Code s 140 ˙ Leave of absence 137. The board may grant leave of absence to a director on such terms and conditions as the board, subject to any determination of the Ministerial Council, considers appropriate. ˙ Resignation 138. A director may resign by signed notice given to the Governor of Queensland. ˙ Termination of appointment 139. The Governor in Council of Queensland may, on the recommendation of the Ministerial Council, terminate the appointment of a director if the director— (a) is guilty of misbehaviour; or (b) is, in the opinion of the Governor in Council, physically or mentally incapable of continuing as a director; or (c) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his or her creditors or makes an assignment of his or her remuneration for their benefit; or (d) contravenes this Code without reasonable excuse; or (e) is absent, without the board’s leave and without reasonable excuse, from 3 consecutive meetings of the board; or (f) accepts an office or appointment with a fiscal body. ˙ Deputy chairperson 140.(1) When— (a) the office of chairperson is vacant; or (b) the chairperson is absent from duty or from Australia or is, for any other reason, unable to perform the functions of the office;

s 141 91 Australian Financial Institutions Commission Code s 143 then, subject to section 141 (Acting appointments), the deputy chairperson is to act as chairperson. (2) While the deputy chairperson is acting as chairperson— (a) the deputy chairperson has all the powers and functions of the chairperson; and (b) the fiscal bodies legislation applies to the deputy chairperson as if the deputy chairperson were the chairperson. (3) Anything done by or in relation to the deputy chairperson while the deputy chairperson is purporting to act as chairperson is not invalid merely because the occasion for the deputy chairperson to act had not arisen or had ceased. ˙ Acting appointments 141. The Governor in Council of Queensland may, on the recommendation of the Ministerial Council, appoint a person to act as chairperson, deputy chairperson or other director— (a) during a vacancy in the office; or (b) during any period, or all periods, when the director is absent from duty or from Australia or is, for any other reason, unable to perform the functions of the office. † Division 3—Provisions relating to the executive director ˙ Appointment 142. The executive director is to be appointed by the Governor in Council of Queensland on the nomination of the board. ˙ Restriction on appointment 143.(1) The chairperson, deputy chairperson or other director mentioned in section 25(d) (Composition of board) must not be appointed as executive director.

s 144 92 Australian Financial Institutions Commission Code s 148 (2) A person who holds an office or appointment with a fiscal body must not be appointed as executive director. ˙ Executive director appointed under Code 144. The executive director is to be appointed under this Code, and not under the Public Service Act 1996 of Queensland. ˙ Appointment not invalid because of appointment defect etc. 145. The appointment of a person as executive director is not invalid merely because of a defect or irregularity in relation to the appointment. ˙ Term of appointment etc. 146.(1) The executive director holds office, subject to subsection (2), for such term (not longer than 5 years) as is specified by the Governor in Council of Queensland in the instrument of appointment on the recommendation of the board. (2) The executive director holds office during the board’s pleasure. ˙ Executive director not to engage in other paid employment 147. The executive director must not engage in paid employment outside the duties of the office except with the approval of the board. ˙ Disclosure of interests by executive director 148.(1) The executive director must give written notice to the chairperson of all direct or indirect pecuniary interests that the director has or acquires in any business or in any body corporate carrying on any business. (2) The obligations of the executive director under this section are in addition to obligations that the executive director has under other provisions of this Code.

s 149 93 Australian Financial Institutions Commission Code s 151 ˙ Terms and conditions of appointment not provided by Code 149. The executive director holds office on such terms and conditions in relation to matters not provided for by this Code (including terms and conditions relating to remuneration, allowances, superannuation and remuneration on termination of employment) as are determined by the board. ˙ Acting executive director 150. The Governor in Council of Queensland may, on the recommendation of the board, appoint a director or another person to act as executive director— (a) during a vacancy in the office; or (b) during any period, or all periods, when the executive director is absent from duty or from Australia or is, for any other reason, unable to perform the functions of the office. † Division 4—Miscellaneous ˙ Committees 151.(1) The board may establish committees to assist it in the performance of its role. (2) A committee may be constituted wholly by directors or partly by directors and partly by other persons, but the majority of members constituting the committee must be directors. (3) The board may fix— (a) the number of members of a committee required to constitute a quorum at a meeting of the committee; and (b) remuneration and allowances of members of a committee who are not directors. (4) Section 128 (Disclosure of interests) applies to a member of a committee as if—

s 152 94 Australian Financial Institutions Commission Code s 154 (a) a reference to the board were a reference to the committee; and (b) a reference to a director were a reference to a member of the committee (whether or not the member is also a director). † PART 12—THE STAFF OF AFIC ˙ AFIC’s employees 152. AFIC may engage such employees as it considers necessary for the performance of its functions. ˙ Terms and conditions of employment 153.(1) Subject to any relevant award or industrial agreement, the terms and conditions of employment of AFIC’s employees engaged under section 152 (AFIC’s employees) are as determined by AFIC. (2) AFIC’s employees are to be employed under this Code, and not under the Public Service Act 1996 of Queensland. (3) In this section— “terms and conditions of employment” include terms and conditions relating to duration of employment and termination of employment. ˙ Arrangements relating to staff 154.(1) AFIC may arrange with the chief executive of a department of government in this State, or with an authority of this State, for the services of officers or employees of the department or authority to be made available to it. (2) AFIC may arrange with the appropriate authority of the Commonwealth or another State, or with an authority of the Commonwealth or another State, for the services of officers or employees of the public service of the Commonwealth or State, or of the authority, to be made available to it.

s 155 95 Australian Financial Institutions Commission Code s 155 (3) AFIC may arrange for the services of an employee of AFIC to be made available to the Commonwealth or a State or to an authority of the Commonwealth or a State. † PART 13—MISCELLANEOUS ˙ Secrecy 155.(1) In this section— “court” includes a tribunal, authority or person having the power lawfully to require the production of documents or the answering of questions. “financial sector supervisory agency” means a person or body prescribed by regulation to be a financial sector supervisory agency for this section. “Government agency” means an agency of the State or the Commonwealth, and includes a body prescribed by regulation to be an agency of a State or the Commonwealth. “law enforcement agency” means a body prescribed by regulation to be a law enforcement agency for the purposes of this section. “protected document” means a document that— (a) contains information that concerns a person; and (b) is obtained or made by a person to whom this section applies in the course of, or because of, the person’s duties under or in relation to the fiscal bodies legislation. “protected information” means information that— (a) concerns a person; and (b) is disclosed to, or obtained by, a person to whom this section applies in the course of, or because of, the person’s duties under or in relation to the fiscal bodies legislation. (2) This section applies to a director, and to a person who is or has been appointed or employed by AFIC for the purposes of carrying out any duties

s 155 96 Australian Financial Institutions Commission Code s 155 under the fiscal bodies legislation. (3) A person to whom this section applies must not— (a) make a record of protected information; or (b) whether directly or indirectly, disclose to a person protected information concerning another person; unless the record is made, or the information disclosed— (c) under or for the purposes of the fiscal bodies legislation; or (d) in the performance of duties, as a person to whom this section applies, under or in relation to the fiscal bodies legislation. Maximum penalty—$25 000. (4) Subsection (3) does not prevent a person to whom this section applies from disclosing protected information or producing a protected document, to— (a) a court; or (b) the State supervisory authority in relation to a State; or (c) a financial sector supervisory agency; or (d) a law enforcement agency; or (e) a Minister or nominee of a Minister; or (f) a Government agency; or (g) to the extent the protected information or document is about a special services provider—the special services provider’s auditor; or (h) to the extent the protected information or document is about a special services provider and is relevant to the period of office of a former auditor of the special services provider—the former auditor. (5) Subsection (3) does not prohibit a person to whom this section applies from disclosing protected information or producing a protected document relating to the affairs of a person if the person agrees in writing to the disclosure of the protected information or the production of the protected document.

s 156 97 Australian Financial Institutions Commission Code s 156 (6) A person to whom this section applies cannot be required to disclose to a court protected information or to produce to a court a protected document except when it is necessary to do so for the purposes of the fiscal bodies legislation. ˙ Register of financial interests of directors and employees 156.(1) In this section— “prescribed person” means a director or an employee of AFIC; “register” means the Register of Financial Interests maintained under subsection (3); “responsible employee” means the person appointed under subsection (4). (2) For the purposes of this section— (a) a person has a financial interest only if the person— (i) has a relevant interest in securities of a fiscal body; or (ii) has money deposited with a fiscal body; or (iii) is in receipt of a loan from a fiscal body; or (iv) is a member of a fiscal body; and (b) the question whether a person has a relevant interest in securities is to be determined as prescribed. (3) AFIC must maintain a Register of Financial Interests. (4) AFIC must appoint 1 of its employees to be the person responsible for making entries in the register in accordance with this section. (5) If a person who has a financial interest becomes a prescribed person, the person must, within 7 days after the day on which he or she becomes a prescribed person, if he or she has not already done so, cause written particulars of the interest to be delivered to the responsible employee. Maximum penalty—$5 000. (6) If there is a change, other than a change prescribed by regulation, in a financial interest of a prescribed person, he or she must, within 7 days after the day on which the change happens, cause written particulars of the

s 156 98 Australian Financial Institutions Commission Code s 156 change to be delivered to the responsible employee. Maximum penalty—$5 000. (7) For the purposes of subsection (6), if a prescribed person ceases to have a financial interest, there is taken to be a change in that financial interest of the person. (8) A person is taken not to have contravened subsection (5) or (6) if the person establishes that— (a) at the time when the person became a prescribed person, the person was not aware that he or she had a financial interest or the person was not, at the time when the change happened, aware of the change; and (b) the person caused written particulars of the financial interest or of the change to be delivered to the responsible employee within 7 days after the day on which the person became aware that he or she had the financial interest or that the change had happened. (9) Particulars to be delivered under subsection (5) or (6) include— (a) the day on which the prescribed person started or ceased to have the financial interest or on which the change happened; and (b) particulars of the nature of the financial interest and, if the financial interest is a relevant interest in securities, particulars of the extent of that interest. (10) If particulars of a financial interest, or of a change in a financial interest, of a prescribed person are delivered to the responsible employee, the employee must cause the particulars, or such of the particulars as are appropriate having regard to the form of the register, to be entered in the register as particulars of a financial interest, or of a change in a financial interest, of the person. (11) AFIC must keep the register at its principal office and ensure that the register is open for public inspection during normal business hours without fee.

s 157 99 Australian Financial Institutions Commission Code s 157 ˙ Directors and employees to act honestly etc. 157.(1) In this section— “prescribed person” means a director or an employee of AFIC. (2) A prescribed person who, in the course of his or her official duties, is required to consider any matter concerning— (a) a person or body— (i) by whom the prescribed person is employed or has been employed at any time during the previous 3 years; or (ii) with whom the prescribed person is associated; or (b) a related body in relation to a financial body or friendly institution by whom the prescribed person is employed or has been employed at any time during the previous 3 years; must immediately inform AFIC of that fact in writing. Maximum penalty—$25 000. (3) A prescribed person must at all times act honestly in the exercise of the powers and the performance of the functions that the person has by virtue of being a prescribed person. Maximum penalty—$25 000. (4) A prescribed person must not make improper use of an office held for the purposes of this Code— (a) to gain, directly or indirectly, an advantage for himself, herself or any other person; or (b) to cause detriment to AFIC. Maximum penalty—$100 000, imprisonment for 15 years or both. (5) A prescribed person, or a person who has at any time been a prescribed person, must not make improper use of information acquired by virtue of an office held for the purposes of this Code— (a) to gain, directly or indirectly, an advantage for himself, herself or any other person; or (b) to cause detriment to AFIC.

s 158 100 Australian Financial Institutions Commission Code s 159 Maximum penalty—$100 000, imprisonment for 15 years or both. (6) It is a defence to a contravention of subsection (2) if the defendant establishes that, when required to consider the matter to which the contravention relates, he or she was not aware of the fact the existence of which obliged him or her to inform AFIC. (7) The question whether a prescribed person is associated with a person or body for the purposes of this section is to be determined as prescribed. ˙ Liability of directors 158.(1) A director incurs no liability for an honest act or omission in the performance or purported performance of functions, or exercise of powers, under this Code. (2) A liability that would, but for this section, attach to a director attaches to AFIC. (3) This section does not apply to— (a) wilful misconduct; or (b) wilful neglect; or (c) wilful failure to comply with this Code. ˙ Liability of employees 159.(1) An employee of AFIC incurs no liability for an honest act or omission in the course of the employee’s employment. (2) A liability that would, but for this section, attach to an employee of AFIC attaches to AFIC. (3) This section does not apply to— (a) wilful misconduct; or (b) wilful neglect; or (c) wilful failure to comply with this Code.

s 160 101 Australian Financial Institutions Commission Code s 162 ˙ AFIC’s seal 160.(1) AFIC’s seal is to be kept in such custody as the board directs and may be used only as authorised by the board. (2) Judicial notice must be taken of the imprint of AFIC’s seal appearing on a document and the document must be presumed to have been properly sealed until the contrary is proved. ˙ Judicial notice of certain signatures 161. Judicial notice must be taken of— (a) the official signature of a person who is or has been chairperson, deputy chairperson, executive director or another director of the board; and (b) the fact that the person holds or has held the office concerned. ˙ Evidentiary provisions 162.(1) A certificate signed by the chairperson or executive director stating that any standard has been made, amended or repealed is evidence of the matter. (2) Evidence of a standard may be given by the production of a copy certified as a true copy by the chairperson or executive director. (3) Evidence of a direction issued, or determination made, by AFIC under this Code may be given by the production of a copy of the direction or determination certified as a true copy by the chairperson or executive director. (4) A certificate signed by the chairperson or executive director stating any matter in relation to an administration levy determined under section 119 (Administration levy) is evidence of the matter. (5) In this section— “chairperson” means the chairperson of the board.

s 163 102 Australian Financial Institutions Commission Code s 164 ˙ Delegation of AFIC’s powers 163. The executive director may delegate AFIC’s powers to an employee of AFIC. ˙ Delegation of board’s powers 164.(1) Subject to subsection (2), the board may, by resolution, delegate its powers under or in relation to the fiscal bodies legislation to— (a) a committee of the board; or (b) a director; or (c) an appropriately qualified employee of AFIC; or (d) a State supervisory authority or an appropriately qualified officer or employee of a State supervisory authority. (2) The following powers may not be delegated— (a) powers under section 28 (Making etc. of standards); (b) the making of determinations under section 30 (Urgent standards); (c) powers under part 6 (Industry funded liquidity support arrangements for societies); (d) powers under section 119 (Administration levy). (3) The delegation— (a) may be revoked by resolution of the board (whether or not constituted by the persons who constituted the board when the power was delegated); and (b) continues in force despite a change in the membership of the board. (4) A certificate signed by the chairperson stating any matter in relation to a delegation of a power under subsection (1) is evidence of the matter. (5) A document purporting to be a certificate under subsection (4) is, unless the contrary is established, taken to be such a certificate and to have been properly given.

s 165 103 Australian Financial Institutions Commission Code s 166 (6) In this section— “appropriately qualified” includes having the qualifications, experience or standing appropriate to exercise the power. Example of standing— The seniority of a person’s position in a body in which the person is employed. ˙ Application of Financial Administration and Audit Act 165. The Financial Administration and Audit Act 1977 of Queensland applies to AFIC and the Appeals Tribunal with such modifications as are prescribed. † PART 14—TRANSITIONAL ˙ Transitional provision for commencement of amendments for applying Code to friendly societies 166.(1) The budget and levy provisions have effect, and may be applied, with all necessary modifications for changing AFIC’s budget for the 97/98 financial year, and for changing the administration levies for funding its budget, to allow for the commencement, after the start of the 97/98 financial year, of the Financial Institutions Legislation Amendment Act 1997 of Queensland. (2) Additionally, the budget and levy provisions have effect, and may be applied, with all necessary modifications for changing AFIC’s budget for the 97/98 financial year, and for determining an establishment cost levy to be paid by friendly societies, to allow for the recouping by AFIC of expenditure incurred by it in the 97/98 financial year and in previous financial years in preparing for the integration of friendly societies into the financial institutions scheme. (3) For the application of the modified budget and levy provisions for the purpose of subsection (2), a reference in the budget and levy provisions to the administration levy may be taken to be a reference to the establishment

s 166 104 Australian Financial Institutions Commission Code s 166 cost levy mentioned in the subsection. (4) In this section— “budget and levy provisions” means the following sections— • section 118 (Determination of AFIC’s budget) • section 119 (Administration levy) • section 120 (Collection of administration levy). “97/98 financial year” means the financial year starting on 1 July 1997.

105 Australian Financial Institutions Commission Code ¡ SCHEDULE † INITIAL FINANCIAL INSTITUTIONS AGREEMENT section 7 INDEX TO AGREEMENT Parties Recital PART 1—PRELIMINARY 101 Citation 102 Definitions PART 2—OPERATION OF AGREEMENT 201 Commencement 202 Amendment 203 Cessation PART 3—ESTABLISHMENT OF FINANCIAL INSTITUTIONS SCHEME 301 Establishment of Financial Institutions Scheme 302 Adherence to prudential standards and practices

106 Australian Financial Institutions Commission Code SCHEDULE (continued) PART 4—THE FINANCIAL INSTITUTIONS SCHEME Division l—General 401 Purpose of this Part 402 Basic nature of the Financial Institutions Scheme Division 2—Legislation 403 Introduction and passage of Initial Legislation 404 Introduction Passage and Content of Application of Laws 405 Legislation 406 Introduction and Passage of Amending Legislation Division 3—Miscellaneous 407 Appointment of AFIC Board 408 Amendment to Financial Institutions Legislation 409 Prohibition on Conflicting Legislation 410 Meaning of amendment PART 5—MINISTERIAL COUNCIL 501 Establishment 502 Membership 503 Acting Member 504 Observer Status 505 Functions 506 Meetings 507 Quorum 508 Chairperson 509 Voting 511 Voting out of meetings 512 Secretariat

107 Australian Financial Institutions Commission Code SCHEDULE (continued) PART 6—INTERSTATE CONSULTATIVE COMMITTEE 601 Interstate Consultative Committee PART 7—FUNDING 701 Initial Funding 702 Subsequent Funding PART 8—WITHDRAWAL OF PARTY 801 Right of Withdrawal SCHEDULE 1 Prudential Standards and Practices SCHEDULE 2 Transitional Legislation

108 Australian Financial Institutions Commission Code SCHEDULE (continued) FINANCIAL INSTITUTIONS AGREEMENT AGREEMENT dated Twenty-Second November 1991 BETWEEN THE STATE OF NEW SOUTH WALES AND THE STATE OF VICTORIA AND THE STATE OF QUEENSLAND AND THE STATE OF SOUTH AUSTRALIA AND THE STATE OF WESTERN AUSTRALIA AND THE STATE OF TASMANIA AND THE NORTHERN TERRITORY OF AUSTRALIA AND THE AUSTRALIAN CAPITAL TERRITORY RECITALS A. At the Special Premiers’ Conference held in Brisbane on 30-31 October 1990 Heads of Government in the interests of the public agreed upon the need for reform of current State legislation for the supervision of State-based financial institutions in the context of the stability of the financial system as a whole. B. A Working Group was formed comprising officials from the Governments of the Commonwealth and the States and from the Reserve Bank of Australia to prepare a report on specific proposals for a supervisory structure for State-based financial institutions.

109 Australian Financial Institutions Commission Code SCHEDULE (continued) C. The Working Group produced in April 1991 a document entitled ‘Proposals for Reform of the Supervisory Structure for Non-bank Financial Institutions’ which incorporated Heads of Agreement on these matters. D. These Heads of Agreement were endorsed by the Governments of the Commonwealth and the States at the Premiers Conference held in Canberra on 31 May 1991. E. Under the Heads of Agreement it was agreed that uniformity and stability will be achieved by the establishment and implementation of a co-operative scheme the objectives of which are to ensure that— (a) there is a system of State-based prudential supervision of permanent building societies and credit unions with national co-ordination of high uniform standards and practices; (b) the legislation relating to the scheme is, and continues to be, uniform throughout Australia at all times; (c) the legislation is administered on a uniform basis; (d) there are suitable industry-funded national liquidity support mechanisms; (e) the States will co-operate with each other in regard to the matters to be provided in the legislation and the way in which the legislation is administered; (f) the legislation is capable of effective administration throughout Australia with a minimum of procedural requirements and is so administered; and (g) changes in the legislation are proposed for consideration as appropriate from time to time and amendments made when the need for reform arises.

110 Australian Financial Institutions Commission Code SCHEDULE (continued) F. The Government of the Commonwealth supports the establishment and implementation of the scheme evidenced by this Agreement, subject to the scheme complying fully with the obligations of the States and the Northern Territory under the Heads of Agreement on future Corporations Regulation agreed between all States, the Northern Territory and the Commonwealth in 1990. G. The Governments of the Commonwealth and the States are continuing discussions regarding other State-based financial institutions and practices which may become subject to the Scheme by unanimous agreement of the Ministerial Council. H. The Governments of the States wish to incorporate their arrangements in this agreement. AGREEMENT PART 1—PRELIMINARY Citation 101. This Agreement may be referred to as the Financial Institutions Agreement. Definitions 102. (1) In this Agreement, unless the contrary intention appears— . ‘AFIC’ means the Australian Financial Institutions

111 Australian Financial Institutions Commission Code SCHEDULE (continued) Commission to be established by and referred to in the Initial Legislation; . ‘Amending Legislation’ means legislation amending previous Financial Institutions Legislation and legislation bringing State-based financial institutions (other than permanent building societies and credit unions) under the Financial Institutions Scheme; . ‘Appeals Tribunal’ means the Australian Financial Institutions Appeals Tribunal to be established by and referred to in the Initial Legislation; . ‘Application of Laws Legislation’ means the legislation referred to in Part 4 and regulations thereunder; . ‘Commonwealth’ means the Commonwealth of Australia; . ‘Financial Institutions’ means permanent building societies, credit unions and such other State-based financial institutions as may from time to time become subject to the Financial Institutions Legislation; . ‘Financial Institutions Legislation’ includes the Initial Legislation, Application of Laws Legislation and Amending Legislation and regulations made under any of them; . ‘Financial Institutions Scheme’ means the scheme of legislative and administrative acts and procedures that is contemplated by this Agreement and specified in Part 4; . ‘Initial Legislation’ means the Australian Financial Institutions Commission Bill 1991 annexed hereto marked ‘A’ and the Financial Institutions (Queensland) Bill 1991 annexed hereto marked ‘B’ subject only to alterations of a drafting nature; . ‘Interstate Consultative Committee’ or ‘Committee’ means the committee established by Part 6;

112 Australian Financial Institutions Commission Code SCHEDULE (continued) . ‘Ministerial Council’ or ‘Council’ means the Ministerial Council for Financial Institutions established by Part 5; . ‘Parliament’ includes the Legislative Assembly of each of the Northern Territory and the Australian Capital Territory; . ‘SSA’ means a State supervisory authority to be established by each of the States and referred to in the Initial Legislation; . ‘State’ means a State of the Commonwealth of Australia and includes the Northern Territory of Australia and the Australian Capital Territory; . ‘States’ means all the States that are for the time being parties to this Agreement; . ‘Transitional Legislation’ means saving and transitional legislation of a State dealing with the introduction of the Financial Institutions Scheme and incorporating the matters referred to in Schedule 2. (3) In this Agreement, unless a contrary intention appears— (a) a reference to an Act (whether of the Commonwealth or a State) includes a reference to— (i) that Act as amended and in force for the time being; and (ii) an Act passed in substitution for that Act; (b) a reference to a Part is a reference to the relevant Part of this agreement; (c) a reference to a clause is a reference to the relevant clause of this agreement; and (d) a reference to a sub-clause is a reference to the relevant

113 Australian Financial Institutions Commission Code SCHEDULE (continued) sub-clause of the clause in which the reference appears or of such other clause as the reference indicates. PART 2—OPERATION OF AGREEMENT Commencement 201. This Agreement comes into operation when it has been executed by or on behalf of all of the parties named above. Amendment 202. This Agreement may be amended only by the parties to it for the time being only in accordance with a resolution of the Ministerial Council passed by a unanimous vote of all the members of that Council with a right to vote in its proceedings. Cessation 203. In the event that a State ceases to be a party this Agreement shall nevertheless continue in force with respect to the States which are parties when the cessation takes effect. 204. A State shall cease to be a party to this Agreement if— (a) on the State of Queensland having passed the Initial Legislation by 31 March 1992 it fails by 30 June 1992 (or such later date as may be unanimously approved by the States) to secure the passing and proclamation (or in the case of the Australian

114 Australian Financial Institutions Commission Code SCHEDULE (continued) Capital Territory the commencement) of the Application of Laws Legislation; or (b) it withdraws from this Agreement pursuant to Part 8. PART 3—ESTABLISHMENT OF FINANCIAL INSTITUTIONS SCHEME 301. The States will take such action as is provided for by this Agreement and is otherwise requisite on their respective parts to achieve the objectives set out in the Recitals by initiating and operating the Financial Institutions Scheme. 302. It is the objective of the States that the scheme should at a minimum maintain the overall level of depositor security reflected in the prudential standards and practices for building societies and credit unions recommended by the Working Group referred to in the Recitals and subsequently amended (a copy of which amended recommendations are contained in Schedule 1). PART 4—THE FINANCIAL INSTITUTIONS SCHEME Division 1—General Purpose of this Part 401. The purpose of this Part is to specify establish and preserve the Financial Institutions Scheme which the parties have agreed upon for the supervision and administration of Financial Institutions. This Part incorporates commitments to the passing and proclamation (or

115 Australian Financial Institutions Commission Code SCHEDULE (continued) in the case of the Australian Capital Territory the commencement) of legislation and establishes procedures involving a commitment not to promote certain kinds of legislation without the approval of the Ministerial Council. Basic Nature of the Financial Institutions Scheme 402. (1) The Financial Institutions Scheme is designed to ensure the introduction and passage— (a) by the Parliament of the State of Queensland of the Initial Legislation dealing with the establishment of AFIC and administration and prudential supervision of Financial Institutions; (b) by the Parliaments of each of the other States of Application of Laws Legislation complementing adopting or applying the Initial Legislation in their respective States; (c) by the Parliament of the State of Queensland of any Amending Legislation approved by the Ministerial Council pursuant to this Agreement. (2) The enactment of the Financial Institutions Legislation referred to in sub-clause (1) will achieve a uniform State-based system of prudential standards and practices for and supervision of Financial Institutions. Division 2—Legislation Introduction and passage of Initial Legislation 403. The State of Queensland will as soon as practicable— (a) submit to its Parliament the Initial Legislation and shall take

116 Australian Financial Institutions Commission Code SCHEDULE (continued) such steps as are appropriate to secure the passing thereof by 31 March 1992; (b) submit to its Executive Council for making by it regulations under the Initial Legislation when they have been unanimously approved by the Ministerial Council. Introduction Passage and Content of Application of Laws Legislation 404. Each State (other than Queensland) will as soon as practicable after unanimous approval of it by the States— (a) submit to the Parliament of that State: (i) its Application of Laws Legislation; and (ii) its Transitional Legislation; (b) submit to its Executive Council (or the in the case of the Australian Capital Territory its Executive) for making by it regulations under the Application of Laws or Transitional Legislation, and shall take such steps as are appropriate to secure the passing and making thereof. 405. Each State will ensure that its Application of Laws Legislation— (a) authorises its SSA to delegate to the SSA of any other State any powers granted to it under the Initial Legislation; (b) authorises its SSA to accept any delegation of powers pursuant to sub-clause (a); (c) will allow AFIC to utilise industry liquidity support arrangements established under its legislation;

117 Australian Financial Institutions Commission Code SCHEDULE (continued) on such terms and conditions as may from time to time be agreed. It is the prerogative of each State Government to determine the structure and composition of its SSA consistent with the objectives of the Financial Institutions Scheme and subject to the overall principle that the SSA should have operational independence from industry and Government. Introduction and Passage of Amending Legislation 406. The State of Queensland will as soon as practicable after approval of it by the Ministerial Council— (a) submit to its Parliament any Amending Legislation; (b) submit to its Executive Council for making by it regulations under the Amending Legislation; and shall take such steps as are appropriate to secure the passing and making thereof. Division 3—Miscellaneous Appointment of AFIC Board 407. The States will as soon as practicable appoint the initial members of the Board of AFIC. Amendment to Financial Institutions Legislation 408. (1) The purpose of this clause is to make provision in regard to amendments made to the Financial Institutions Legislation or regulations thereunder before such Financial Institutions Legislation is introduced or such regulations are made.

118 Australian Financial Institutions Commission Code SCHEDULE (continued) (2) Any Financial Institutions Legislation must not be introduced nor regulations made thereunder unless the Ministerial Council has approved the Financial Institutions Legislation or regulations (as the case may be) in the form in which they are introduced or made. (3) Notwithstanding subclause (2) the approval of the Ministerial Council to such Financial Institutions Legislation or regulations may be given so as to permit the making of alterations of a drafting nature or alterations of other kinds or for other purposes as specified in the approval, without the need for further approval. Prohibition on Conflicting Legislation 409. A State will not submit legislation to its Parliament nor take action for the making of regulations which will, upon coming into force, conflict with or negate the operation of the Financial Institutions Legislation. Meaning of amendment 410. In this Part ‘amend’ means directly amend Financial Institutions Legislation by the insertion or omission (or both) of matter or indirectly amend Financial Institutions Legislation by making provisions that would significantly alter its effect, scope or operation. PART 5—MINISTERIAL COUNCIL Establishment 501. A Council of State Ministers is established by this Agreement, to be known as the Ministerial Council for Financial Institutions.

119 Australian Financial Institutions Commission Code SCHEDULE (continued) Membership 502. The Council consists of one member representing each State which is for the time being a party to the Agreement who (subject to clause 503) is the Minister for the time being responsible for administering the law relating to supervision of financial institutions in that State. Acting Member 503. (1) A Minister who is acting for a Minister who is a member of the Council may act as a member of the Council in place of the member. (2) A member of the Council may appoint a delegate to act as a member of the Council in place of the member. Such an appointment may be limited to a particular meeting or particular meetings or to a particular period or particular periods, and may be revoked at any time. (3) References in this Agreement (other than in this clause) to a member of the Council extend to an acting member. (4) Without limitation, an acting member may in that capacity: (a) attend and participate in meetings of the Ministerial Council in place of the member concerned (including meetings referred to in clause 506(3); and (b) exercise the voting rights of the member concerned (including voting rights under clause 511). Observer Status 504. (1) The Council may, by unanimous resolution, and on such terms as it

120 Australian Financial Institutions Commission Code SCHEDULE (continued) thinks fit, confer non-voting observer status on a representative of a government that is not a party to this Agreement. (2) The representative’s observer status ceases when a member of the Council notifies the Chairperson or Secretary of the Council that the member does not support continuation of that status. Functions 505. The Council has the functions conferred on it by this Agreement and by the Financial Institutions Legislation which shall include— (a) the approval until 31 December 1992 of regulations under the Initial Legislation by unanimous vote and thereafter by majority vote; (b) the approval of Amending Legislation bringing State-based financial institutions (other than permanent building societies and credit unions) under the Financial Institutions Scheme by unanimous vote; (c) the approval of Amending Legislation (other than that specified in sub-clause (b) by majority vote; (d) the appointment of the members of the board of AFIC (other than the initial members) and the members of the Appeals Tribunal by majority vote; (e) the exercise of general oversight over AFIC. Meetings 506. (1) Meetings of the Council shall be held at such times and at such places as are from time to time decided by the Council and at least one meeting shall be held in each financial year.

121 Australian Financial Institutions Commission Code SCHEDULE (continued) (2) A meeting of the Council may be convened by any three (3) members by notice of fourteen (14) days or of such other period as may be accepted by all members for the purpose of the meeting. (3) A meeting of the Council may be held wholly or partly if all members so agree, by means of telephone, television or some other mode of communication approved for the purposes of this subclause by the Council. (4) Members of the Council who take part in a meeting specified in sub-clause (3) are taken to have been present at the meeting although they were not all present at the same place at the time when the meeting was so held. (5) Clause 503 extends to meetings referred to in subclause (3) of this clause, and references in clause 503 to attending a meeting of the Council extend to joining in the meeting in whatever way the meeting is held. (6) To the extent that this Agreement does not prescribe with respect to the following matters the Council may determine— (a) the notice of meeting to be given to its members and the manner of giving notice; and (b) the procedure at its meetings; and (c) the manner in which and by whom its decisions are recorded and the procedure for confirmation of the correctness of the record. Quorum 507. The quorum for a meeting of the Council shall be five (5) members but no matter requiring unanimous resolution may be voted on unless all the members of that Council with a right to vote in its proceedings are present or vote.

122 Australian Financial Institutions Commission Code SCHEDULE (continued) Chairperson 508. The Chairperson of a meeting of the Council shall be decided by the Council prior to or, if not previously decided, at the meeting. Voting 509. Each member of the Council has one vote and the Chairperson does not have a casting vote. 510. Except in respect of the matters provided in Clauses 202, 504(1), 505(a) and (b) a resolution will be carried by the Council by a majority of votes of all members cast on the resolution. Voting out of meetings 511. (1) Members of the Council may cast votes for a resolution referred to all members of the Council, even though the Council is not then in session, and whether or not the resolution has been considered at a meeting of the Council. (2) For the purposes of subclause (1), a vote may be cast by communicating by facsimile transmission or teleprinter, or by any other mode of communication approved by the Ministerial Council, to the Secretary of the Council or other recipient approved by the Council. (3) Clause 503 extends to voting referred to in this clause, and references in clause 503 to attending a meeting of the Council extend to joining in the business of the Council in whatever way it is conducted.

123 Australian Financial Institutions Commission Code SCHEDULE (continued) Secretariat 512. (1) The secretariat functions for the Council will be carried out by such person or persons as the Council may from time to time determine. (2) The Secretary of the Council will be the person for the time being designated as such by the Council. PART 6—INTERSTATE CONSULTATIVE COMMITTEE 601. (1) An Interstate Consultative Committee shall be established comprising one representative of each SSA. (2) The Committee shall meet on a regular basis as a forum for the exchange of information and ideas with respect to the Financial Institutions Scheme and its operation and shall make such recommendations or representations to AFIC as it sees fit. (3) The Committee may nominate two candidates for appointment to the board of AFIC and the Ministerial Council shall consider such nominations in appointing the members of the board of AFIC pursuant to Clause 505(d). PART 7—FUNDING Initial Funding 701. (1) This clause applies to the period to 31 December 1992 or such other period as the Ministerial Council may determine.

124 Australian Financial Institutions Commission Code SCHEDULE (continued) (2) The funds required for the establishment and functioning of AFIC upon approval by the Ministerial Council of the relevant budget shall be provided by the States severally in accordance with the same proportions as the estimated population of each State on 31 December 1989 as determined by the Australian Statistician under the provisions of the States Grants (General Purposes) Act 1989 of the Commonwealth Parliament bears to the total of the estimated populations of all the States on that date. Subsequent Funding 702. (1) This clause applies to any financial period subsequent to that specified in Clause 701. (2) The funds required for the functioning of AFIC upon approval by the Ministerial Council of the relevant budget shall be provided and collected (on a pro rata basis if appropriate) as specified in the Initial Legislation. PART 8—WITHDRAWAL OF PARTY Right of Withdrawal 801. (1) A party to this agreement may at any time by notice in writing to the Ministerial Council withdraw from this agreement and shall cease to be a party when the notice of withdrawal takes effect. (2) A notice of withdrawal under this clause shall take effect on a date to be specified in the notice which is not earlier than 30 June in the financial year next following the financial year in which the notice is given.

125 Australian Financial Institutions Commission Code SCHEDULE (continued) SCHEDULE BUILDING SOCIETIES Prudential Standards and Practices Recommendation Entry Requirements 1. Character . A primary objects test specifically related to purpose should apply: At all times not less than 50 per cent of group assets must be comprised of loans or investments made for residential buildings or residential development. Exemptions may be permitted on a case-by-case basis in accordance with standards. . Mutual Control: One member, one vote; members being those persons who hold membership in accordance with the rules. Exemptions allowing up to one vote to be exercised for each permanent share held by a member to be considered on a case-by-case basis in accordance with standards. Prudential Standards & Practices 2. Capital Adequacy . Adoption of the Reserve Bank’s (RBA) Group risk-weighted approach to capital adequacy. . Minimum 8 per cent risk-weighted capital comprising core and supplementary capital where supplementary must not exceed core.

126 Australian Financial Institutions Commission Code 3. Provision for Doubtful Debts 4. Liquidity SCHEDULE (continued) . Capital definition per RBA with appropriate modifications. . Risk weightings per RBA with appropriate modifications including the 50 per cent weighting for residential housing loans, secured by registered mortgage over one unit of residence (eg. one house, one unit in a block), owner occupied or tenanted. . Capital requirement may be increased if a society or subsidiary has undertaken abnormal risks or a society has failed to develop and apply adequate systems to monitor or manage risks. . Provision for doubtful debts for both secured and unsecured loans in accordance with a formula determined by AFIC. . Adoption of a minimum prime liquid assets requirement to be met at all times. The ratio to be 10 per cent of all liabilities (other than the amount of defined capital held). . The numerator of the ratio to comprise prime liquefiable assets similar to the prime assets in the RBA PAR ratio broadened to include bank deposits and bills and State or Territory Government issued or guaranteed securities. Forward loan commitments are to be deducted from the numerator unless the State Supervisory Authority is satisfied that appropriate cash flow management systems are in place. . Comprehensive liquidity management systems (to the State Supervisory Authority's satisfaction) to monitor and manage operational liquidity and liquidity risk to prudent levels based on the RBA approach. While the State Supervisory Authority

127 Australian Financial Institutions Commission Code SCHEDULE (continued) 5. Risk Management 6. Large Exposures will review building societies on a case-by-case basis, it is generally recommended that operational liquidity to be 10 per cent of liabilities (other than the amount of defined capital held) and would normally include: — prime liquid assets in excess of set minimum; — undrawn standby and overdraft facilities; — funds securing settlement accounts; and — funds available through securitization of mortgages. . Management systems to control exposures and limit risks associated with financial activities based on the RBA approach and in particular: — credit risk; — liquidity risk; — interest rate risk; and — foreign currency risk. . Written descriptions of the systems to be supplied to the State Supervisory Authority. . A similar approach to that adopted by the RBA including prior notification and subsequent reporting of large exposures to individuals or associated persons above 10 per cent of defined capital held. . Building Societies may be prohibited from entering into a large exposure if the State Supervisory Authority considers it would constitute an excessive risk. . State Supervisory Authority may require a society to maintain a higher capital ratio to support the exposure. A society wishing to maintain a high

128 Australian Financial Institutions Commission Code 7. Subsidiaries 8. Guarantees SCHEDULE (continued) volume of large exposures may be required to maintain a higher capital ratio. . Financial intermediation to be conducted through the holding entity unless there is a sustainable argument to the State Supervisory Authority’s satisfaction. In any event the size of subsidiaries should not become unduly large relative to the holding entity and there should not be a proliferation of subsidiaries. . In relation to any activity of a subsidiary, the State Supervisory Authority may direct a holding society to comply with any guidelines in the same manner as if that activity was being carried out by the society. State Supervisory Authority may direct a merger of a holding building society. . State Supervisory Authority may inspect a subsidiary with which a society has invested funds and may require a society to furnish information relating to the subsidiary. . Subsidiaries’ activities should generally not be guaranteed and then only subject to full consolidation for prudential purposes. The State Supervisory Authority may restrict or prohibit guarantees. . Consolidated capital adequacy and primary objects tests apply. State Supervisory Authority may require a society to maintain a higher capital ratio if a subsidiary has undertaken abnormal risks. . Guarantees of managed funds permitted subject to off-balance sheet weighting but restricted to those where the trust investments are limited to those placed with the society.

129 Australian Financial Institutions Commission Code 9. Ownership 10. Directors SCHEDULE (continued) . Limit of 10 per cent on holding of permanent or withdrawable shares (or other securities as determined) in a society by a person or their associates and this includes directors. Ongoing exemptions renewable on a periodic basis to be considered by the SSA on a case-by-case basis in accordance with standards. . Obligations imposed upon directors and other officers responsible for management, to follow Corporations Law provisions and to include restrictions on loans to directors. . Where persons and/or corporations are associated with one another, AFIC will develop guidelines to ensure that independence of the Board of directors is maintained. Compliance 11. Reporting NOTE: . By the external auditor to the Board of directors and in turn to the State Supervisory Authority to follow the RBA style, reporting on the adequacy of the management systems adopted to control exposures and limit risks and compliance with prudential standards. . By the society to the State Supervisory Authority on a comprehensive range of financial information. . By the society to members and other investors (in addition to and more frequent than annual audited accounts) to include risk ratios, capital to support transactions and details of management contracts. All reporting on a group basis as applicable.

130 Australian Financial Institutions Commission Code SCHEDULE (continued) 12. Inspection 13. Formal Discussions Other Issues 14. Interstate Trading 15. Management Contracts 16. Liquidity Support Schemes 17. Additional Standards . Verification of compliance by regular on-site inspection by the State Supervisory Authority. . Formal discussions between the State Supervisory Authority and directors and senior management to review overall performance. . Foreign registration by host State/Territory subject to society gaining compliance certificate from supervising SSA. Compliance certificate to be issued on the basis of society meeting applicable standards. . Subject to the society not continuing to meet the standards the host State/Territory may withdraw registration. . Home State/Territory supervises with supervision powers available to host State/Territory. . Interstate and cross industry mergers provided for. . To be considered on a case-by-case basis to ensure arm’s length dealings with management and directors and their associations. . Mandatory participation in an AFIC approved liquidity support scheme. . AFIC may change, increase or issue new prudential and other standards from time to time, in accordance with legislative provisions.

131 Australian Financial Institutions Commission Code SCHEDULE (continued) CREDIT UNIONS Prudential Standards and Practices Recommendation Entry Requirements 1. Character . National uniformity of objects in rules being: — to operate as a financial co-operative; — to raise funds by deposit, or otherwise from members, as authorised by the legislation; — to apply those funds, subject to the legislation and the rules of the credit union, in giving financial accommodation to members of the credit union; — to provide such other services to its members as the credit union believes would be of benefit to the members. . 60 per cent of group assets held in loans advanced to members. . Commercial lending restricted to a maximum of 10 per cent of group assets where commercial loans are advanced in accordance with prudential standards and the rules of the credit union.

132 Australian Financial Institutions Commission Code SCHEDULE (continued) . Mutual control: One member, one vote; Members being those persons who are admitted to membership in accordance with the rules. Prudential Standards & Practices 2. Capital Adequacy . Adoption of the Reserve Bank’s (RBA) Group risk-assessed approach to capital adequacy. . Minimum 8 per cent risk-assessed capital with a minimum 6 per cent core capital. . Capital definition per RBA with appropriate modifications to suit. . Risk weightings per RBA with appropriate modifications including 50 per cent for residential housing loans secured by registered mortgage over one unit of residence (eg. one house, one unit in a block), owner occupied or tenanted. . Capital requirements may be increased if a credit union or subsidiary has undertaken abnormal risks or a credit union has failed to develop and apply adequate systems to monitor or manage risks. 3. Provision for . Provision for doubtful debts for both secured and Doubtful Debts unsecured loans in accordance with a formula determined by AFIC. 4. Liquidity . Adoption of a minimum prime liquid assets requirement to be met at all times. The ratio to be 7 per cent of all liabilities (other than the amount of defined capital held). . The numerator of the ratio to comprise prime liquefiable assets similar to the prime assets in the

133 Australian Financial Institutions Commission Code SCHEDULE (continued) 5. Risk Management RBA PAR ratio broadened to include bank deposits and bills, State or Territory Government issued or guaranteed securities and deposits held by approved special service providers. Forward loan commitments are to be deducted from the numerator unless the State Supervisory Authority considers appropriate cash flow management systems are in place. . Comprehensive liquidity management systems (to the State Supervisory Authority’s satisfaction) to monitor and manage operational liquidity and liquidity risk to prudent levels based on the RBA approach. While the State Supervisory Authority will review credit unions on a case-by-case basis, it is generally recommended that operational liquidity be maintained at 8 per cent of liabilities (other than the amount of defined capital required) to include: — prime liquid assets in excess of set minimum; — funds securing settlement accounts — operational funds held by approved special service providers; — undrawn standby and overdraft facilities; and — funds available through the securitization of loans. . Management systems to control and limit risks associated with financial activities based on the RBA approach and in particular: — credit risk; — liquidity risk; and — interest rate risk. . Written descriptions of the systems to be supplied to the State Supervisory Authority.

134 Australian Financial Institutions Commission Code 6. Large Exposures 7. Subsidiaries SCHEDULE (continued) . A similar approach to that adopted by the RBA including prior notification and subsequent reporting of large exposures to individuals or associated persons above 10 per cent of defined capital held. . Credit unions may be prohibited from entering into a large exposure if State Supervisory Authority considers it would constitute an excessive risk. . State Supervisory Authority may require a credit union to maintain a higher capital ratio to support the exposure. A credit union wishing to maintain a high volume of large exposures may be required to maintain a higher capital ratio. . A sectional limit of 10 per cent of assets to apply to commercial lending. Also commercial loans to a member or group of associated members are not to exceed in aggregate 1 per cent of all loans outstanding. . Financial intermediation to be conducted through the holding entity unless there is a sustainable argument to the State Supervisory Authority's satisfaction. In any event the size of subsidiaries should not become unduly large relative to the holding entity and there should not be a proliferation of subsidiaries. . In relation to any activity of a subsidiary, State Supervisory Authority may direct a holding credit union to comply with any guidelines in the same manner as if that activity was being carried out by the credit union. State Supervisory Authority may direct a merger of a holding credit union.

135 Australian Financial Institutions Commission Code 8. Guarantees 9. Ownership 10. Directors 11. Managed Funds SCHEDULE (continued) . State Supervisory Authority may inspect a subsidiary with which a credit union has invested funds and may require a credit union to furnish information relating to the subsidiary. . Subsidiaries’ activities should generally not be guaranteed and then only subject to full consolidation for prudential purposes. The State Supervisory Authority may restrict or prohibit guarantees. . Consolidated capital adequacy applies. State Supervisory Authority may require a credit union to maintain a higher capital ratio if a subsidiary has undertaken abnormal risks. . General prohibition of guarantees to third parties. . Limit of 10 per cent on holding of withdrawable shares in a credit union by a person or their associates and this includes directors. . One member, one vote. . Obligations imposed upon directors and other officers responsible for management, to follow Corporations Law provisions and include restrictions on loans to directors. . Where persons and/or corporations are associated with one another, AFIC will develop guidelines to ensure the independence of the Board of directors is maintained. . Credit unions should generally not be involved with managed funds (ADF’s, superannuation). State Supervisory Authority may permit where risk is minimal and maybe appropriately undertaken at national industry level.

136 Australian Financial Institutions Commission Code Compliance 12. Reporting NOTE: 13. Inspection 14. Formal Discussions Other Issues 15. Interstate Trading SCHEDULE (continued) . By the external auditor to the Board of Directors and in turn to the State Supervisory Authority to follow the RBA style, reporting on the adequacy of the management systems adopted to control exposures and limit risks and compliance with prudential standards. . By the credit union to the State Supervisory Authority on a comprehensive range of financial information. . By the credit union to members (in addition to and more frequent than annual audited accounts) to include risk ratios and capital to support transactions. All reporting on a group basis as applicable. . Verification of compliance by regular on site inspection by the State Supervisory Authority. . Formal discussions between the State Supervisory Authority and directors and senior management to review overall performance. . Foreign registration by host State/Territory subject to society gaining compliance certificate from supervising SSA. Compliance certificate to be issued on the basis of society meeting applicable standards. . Subject to the credit union not continuing to meet the standards the host State/Territory may withdraw registration.

137 Australian Financial Institutions Commission Code SCHEDULE (continued) 16. Management 17. Liquidity 18. Additional Standards . Home State/Territory supervises with supervision powers available to host State/Territory. . Interstate and cross industry mergers provided for. . To be reviewed on a case-by-case basis to ensure Contracts arm’s length dealings with management and directors and their associates. . Mandatory participation in an AFIC approved Support Schemes liquidity support scheme. . AFIC may change, increase or issue new prudential and other standards from time to time, in accordance with legislative provisions.

138 Australian Financial Institutions Commission Code SCHEDULE (continued) SCHEDULE 2 Transitional Legislation Transitional Legislation shall include provisions in respect of associations of credit unions formed or incorporated prior to the commencement of the Financial Institutions Legislation— (a) to permit them to transfer their engagements and membership to a special services provider incorporated under the Financial Institutions Legislation; (b) where any member of any such association elects not to transfer its membership to a special services provider to require that special services provider to pay to that credit union (by such instalments and at such time as AFIC may approve) the share of surplus to which it would otherwise be entitled had the association been wound up; (c) to permit such associations to transfer to a special services provider of treasury services to credit unions such equitable mortgages or charges as they hold over the assets of credit unions.

139 Australian Financial Institutions Commission Code † ENDNOTES ´ 1 Index to endnotes Page 2 Date to which amendments incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 3 Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 4 Table of reprints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 5 Tables in earlier reprints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 6 List of legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 7 List of annotations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 8 Table of corrected minor errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 ´ 2 Date to which amendments incorporated This is the reprint date mentioned in the Reprints Act 1992, section 5(c). Accordingly, this reprint includes all amendments that commenced operation on or before 24 February 1998. Future amendments of the Australian Financial Institutions Commission Code may be made in accordance with this reprint under the Reprints Act 1992, section 49.

140 Australian Financial Institutions Commission Code 3 ´ AIA amd ch def div exp gaz hdg ins lap notfd om o in c p para prec pres prev = = = = = = = = = = = = = = = = = = Key Key to abbreviations in list of legislation and annotations Acts Interpretation Act 1954 amended chapter definition division expires/expired gazette heading inserted lapsed notified omitted order in council page paragraph preceding present previous (prev) proc prov pt pubd R[X] RA reloc renum rep s sch sdiv SIA SL sub unnum = = = = = = = = = = = = = = = = = previously proclamation provision part published Reprint No.[X] Reprints Act 1992 relocated renumbered repealed section schedule subdivision Statutory Instruments Act 1992 subordinate legislation substituted unnumbered ´ 4 Table of earlier reprints TABLE OF EARLIER REPRINTS [If a reprint number includes a roman letter, the reprint was released in unauthorised, electronic form only.] Reprint No. Amendments included Reprint date 1 none 1 July 1992 2 to Act No. 25 of 1993 27 July 1993 3 to Act No. 27 of 1994 28 July 1994 3A to Act No. 33 of 1997 20 November 1997 ´ 5 Tables in earlier reprints Name of table TABLES IN EARLIER REPRINTS Corrected minor errors Reprint No. 2

141 Australian Financial Institutions Commission Code ´ 6 List of legislation Australian Financial Institutions Commission Code date of assent 27 March 1992 pts 1–4 (other than s 2), pts 11–13 commenced 10 April 1992 (1992 SL No. 73) remaining provisions commenced 1 July 1992 (1992 SL No. 168) [This is the Code set out in section 21 of the Australian Financial Institutions Commission Act 1992 of Queensland]. as amended by— Financial Institutions Legislation Amendment Act 1993 No. 25 pts 1, 3 date of assent 2 June 1993 ss 1–2 commenced on date of assent remaining provisions commenced 1 July 1993 (see s 2) Financial Institutions Legislation Amendment Act 1994 No. 27 pts 1, 5 date of assent 28 June 1994 ss 1–2 commenced on date of assent remaining provisions commenced 1 July 1994 (1994 SL No. 222) Public Service Act 1996 No. 37 ss 1–2, 147 sch 2 date of assent 22 October 1996 ss 1–2 commenced on date of assent remaining provisions never proclaimed into force and om 1997 No. 33 s 128 Financial Institutions Legislation Amendment Act 1997 No. 33 ss 1–2(1) pt 2, s 34 sch date of assent 18 July 1997 ss 1–2 commenced on date of assent remaining provisions commenced 1 October 1997 (1997 SL No. 318) ´ 7 List of annotations Definitions s 3 def “ASC” ins 1997 No. 33 s 4(2) def “association” amd 1997 No. 33 s 4(3) def “COFS” ins 1997 No. 33 s 4(2) def “fiscal bodies legislation” ins 1997 No. 33 s 4(2) def “fiscal body” ins 1997 No. 33 s 4(2) def “friendly association” ins 1997 No. 33 s 4(2) def “friendly institution” ins 1997 No. 33 s 4(2) def “friendly societies legislation” ins 1997 No. 33 s 4(2) def “friendly society” ins 1997 No. 33 s 4(2) def “group” amd 1997 No. 33 s 34(1) sch def “ISC” ins 1997 No. 33 s 4(2) def “PHIAC” ins 1997 No. 33 s 4(2)

142 Australian Financial Institutions Commission Code def “prudential standard” amd 1997 No. 33 ss 4(4), 34(2) sch def “RBA” ins 1997 No. 33 s 4(2) def “society” amd 1997 No. 33 s 4(5) def “State supervisory authority” sub 1997 No. 33 s 4(1)–(2) Interpretation—words etc. used in Financial Institutions Code or Friendly Societies Code prov hdg amd 1997 No. 33 s 5 s 4 amd 1997 No. 33 s 5 The financial institutions scheme s 6 amd 1997 No. 33 s 34(2) sch Friendly societies legislation s 8A ins 1997 No. 33 s 6 Principal object of financial institutions scheme and its achievement s 9 amd 1997 No. 33 ss 7, 34(2) sch Principles of supervision s 10 amd 1997 No. 33 ss 8, 34(2) sch Role of State supervisory authorities s 11 amd 1997 No. 33 s 9 PART 2—THE FINANCIAL INSTITUTIONS SCHEME AND ITS MAIN ELEMENTS Division 2—Operation of fiscal bodies legislation div hdg amd 1997 No. 33 s 34(2) sch Extraterritorial operation of legislation s 12 amd 1997 No. 33 s 34(2) sch Fiscal bodies legislation binds the Crown prov hdg amd 1997 No. 33 s 10 s 13 amd 1997 No. 33 s 34(2) sch Functions s 15 amd 1997 No. 33 ss 11, 34(2) sch General powers s 16 amd 1997 No. 33 s 34(2) sch AFIC independent body s 18 amd 1997 No. 33 s 34(2) sch Consultation s 23 amd 1997 No. 33 s 12 Composition of the board s 25 amd 1997 No. 33 s 13 Making etc. of standards s 28 amd 1997 No. 33 s 34(2) sch

143 Australian Financial Institutions Commission Code Application of changed requirements s 31 amd 1997 No. 33 s 34(1) sch Matters for which standards may make provision s 33 1997 No. 33 s 34(2) sch Publication of standards s 34 amd 1997 No. 33 s 34(1) sch No discrimination on ground of connection with particular States s 35 1997 No. 33 s 34(2) sch Registration of special service providers s 36 amd 1997 No. 33 s 14 Application of Financial Institutions Code s 40 amd 1994 No. 27 s 72 Restrictions on making determination s 45 amd 1997 No. 33 s 15 Provision of liquidity support s 46 amd 1994 No. 27 s 73 Certain applied provisions not effective s 46A ins 1997 No. 33 s 16 Limitation on court’s power to make order s 46B ins 1997 No. 33 s 16 PART 6A—NAMES pt hdg ins 1994 No. 27 s 74 Reference to registration of fiscal body’s name s 47A ins 1994 No. 27 s 74 sub 1997 No. 33 s 17 Fiscal body must have certain words as part of name s 47B ins 1994 No. 27 s 74 sub 1997 No. 33 s 17 Approval of name for use s 47BA ins 1997 No. 33 s 17 Reservation of names s 47C ins 1994 No. 27 s 74 amd 1997 No. 33 ss 18, 34 sch Extension of reservation s 47D ins 1994 No. 27 s 74 End of reservation s 47E ins 1994 No. 27 s 74 sub 1997 No. 33 s 19

144 Australian Financial Institutions Commission Code AFIC may direct change of name or revoke approval of name s 47F ins 1994 No. 27 s 74 sub 1997 No. 33 s 19 Obtaining information from State supervisory authorities s 48 amd 1997 No. 33 s 20 Reports to Ministerial Council etc. concerning State supervisory authorities s 49 amd 1997 No. 33 s 34(2) sch Obtaining evidence s 52 amd 1994 No. 27 s 75; 1997 No. 33 ss 21, 34(2) sch Entry and search—monitoring compliance s 55 amd 1997 No. 33 ss 22, 34(1) sch Offence related warrant may be granted by telephone s 60 amd 1997 No. 33 s 23 Proceedings for offences s 63 amd 1994 No. 27 s 76 Reviewable decisions s 65 amd 1997 No. 33 s 34(2) sch Appointment of members s 69 amd 1996 No. 37 s 147 sch 2 (never proclaimed into force and om 1997 No. 33 s 128); 1997 No. 33 s 24 Procedure of Appeals Tribunal s 85 amd 1997 No. 33 s 34(2) sch Hearings to be in private unless all parties agree etc. s 87 amd 1993 No. 25 s 19 Review by tribunal s 94 amd 1997 No. 33 s 34(2) sch Appeals from decisions of Appeals Tribunal prov hdg amd 1994 No. 27 s 77(1) s 96 amd 1994 No. 27 s 77(2) Operation and implementation of a decision subject to appeal s 97 amd 1994 No. 27 s 78 Reference of questions of law prov hdg amd 1994 No. 27 s 79(1) s 98 amd 1994 No. 27 s 79(2) Costs s 99 amd 1994 No. 27 s 80 Protection of members etc. s 100 amd 1994 No. 27 s 81

145 Australian Financial Institutions Commission Code Terms and conditions of employment s 111 amd 1996 No. 37 s 147 sch 2 (never proclaimed into force and om 1997 No. 33 s 128); 1997 No. 33 s 25 Delegation of powers by chairperson s 115 amd 1997 No. 33 s 34(2) sch Administration levy s 119 amd 1997 No. 33 s 34(2) sch Collection of administration levy s 120 amd 1997 No. 33 ss 26, 34 sch Interpretation—meaning of “required minimum number of directors” s 121 amd 1997 No. 33 s 27 Restriction on appointments s 132 amd 1997 No. 33 s 34(1) sch Directors appointed under Code s 133 sub 1996 No. 37 s 147 sch 2 (never proclaimed into force and om 1997 No. 33 s 128); 1997 No. 33 s 28 Termination of appointment s 139 amd 1997 No. 33 s 34(1) sch Deputy chairperson s 140 amd 1997 No. 33 s 34(2) sch Restriction on appointment s 143 amd 1997 No. 33 s 34(1) sch Executive director appointed under Code s 144 sub 1996 No. 37 s 147 sch 2 (never proclaimed into force and om 1997 No. 33 s 128); 1997 No. 33 s 29 Terms and conditions of employment s 153 amd 1993 No. 25 s 20; 1996 No. 37 s 147 sch 2 (never proclaimed into force and om 1997 No. 33 s 128); 1997 No. 33 s 30 Secrecy s 155 sub 1997 No. 33 s 31 Register of financial interests of directors and employees s 156 amd 1993 No. 25 s 21; 1997 No. 33 s 34(1) sch Directors and employees to act honestly etc. s 157 amd 1997 No. 33 s 32 Judicial notice of certain signatures s 161 amd 1993 No. 25 s 22 Delegation of board’s powers s 164 amd 1997 No. 33 ss 33, 34(2) sch

146 Australian Financial Institutions Commission Code PART 14—TRANSITIONAL pt hdg ins 1997 No. 33 s 33A Transitional provision for commencement of amendments for applying Code to friendly societies s 166 ins 1997 No. 33 s 33A ´ 8 Table of corrected minor errors Provision TABLE OF CORRECTED MINOR ERRORS under the Reprints Act 1992 s 44 Description 75(a) 86(2)(c)(ii) 98(1) om ‘physcially’ ins ‘physically’ om ‘that’ om ‘own’ (2nd mention) © State of Queensland 1998

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