Council of Financial Regulators Annual Report – 1999 Appendix D

APRA and the Commonwealth Treasury release a Memorandum of Understanding covering policy and operational co-ordination in the regulation of the Australian financial system.

APRA and the Motor Accidents Authority of NSW sign a Memorandum of Understanding setting out a framework of co-operation in areas of common interest.

ASIC announces the formation of an Office of Consumer Protection.

ASIC and the Securities Commission of Papua-New Guinea release a Memorandum of Understanding providing a framework for the exchange of information and investigative assistance between the two organisations.

APRA releases for comment a Policy Discussion Paper on the prudential supervision of conglomerates.

The Payments System Board announces a widening of access to Exchange Settlement Accounts at the RBA.

The Council of Financial Regulators releases an updated version of the booklet, Year 2000 Preparations in the Australian Banking and Financial System.

The Australian Accounting Standards Board, the Life Insurance Actuarial Standards Board and APRA release a joint statement to the life insurance industry clarifying some of the requirements embodied in Accounting Standard AASB 1038 ‘Life Insurance Business’; Actuarial Standard AS1.01 ‘Valuation of Policy Liabilities’; and Prudential Rules (PR35) for financial statements under the Life Insurance Act 1995.

APRA and the Australian Tax Office release a Memorandum of Understanding setting out how the two agencies will co-operate in the regulation of the superannuation industry.

ASIC announces the creation of a new national electronic enforcement unit.

The Superannuation Legislation Amendment Act 1999 receives Royal Assent. This Act makes various amendments to the Bankruptcy Act 1966, the Superannuation (Resolution of Complaints) Act 1993 and the Superannuation Industry (Supervision) Act 1993 (SIS Act) to improve the efficiency and effectiveness of the supervisory framework for superannuation. Importantly, this Act permits trustees of a superannuation fund to amend the governing rules of the fund to enable the acceptance of binding death benefit nominations from members under section 59 of the SIS Act.

ASIC launches an Electronic Company Registration (ECR) service which enables new companies to be registered within minutes via the Internet.

ASIC enters into Memoranda of Understanding with the Comision Nacional Del Mercado De Valores of Spain and the Financial Services Board of South Africa.

APRA releases guidelines outlining amendments to the capital adequacy standards applying to banks. The guidelines give effect to the decision by the Basel Committee on Banking Supervision, in October 1998, to allow the inclusion of innovative equity instruments in Tier 1 capital.

The Financial Sector Reform (Amendments and Transitional Provisions) Act (No.1) 1999 receives Royal Assent. The Act deals with various matters associated with the transfer of financial institutions covered by the Financial Institutions Scheme to the Commonwealth regulatory regime.

The Financial Sector (Transfer of Business) Act 1999 receives Royal Assent. The Act gives APRA new powers to approve an application for the transfer of part or all of the business of one prudentially regulated entity to another (a voluntary transfer); or to require, in limited circumstances, a prudentially regulated entity to transfer part or all of its business to another entity (a compulsory transfer).

A determination was made setting the levies for the period 1999 – 2000 to cover the supervisory costs of financial institutions regulated by APRA.

The High Court upholds an appeal against a decision of the full Federal Court which ruled that the review powers of the Superannuation Complaints Tribunal were invalid.

ASIC launches the trial of an interactive website service that allows its clients to view their company details and make changes to them.

APRA becomes responsible for the prudential regulation of the State- and Territory-based financial institutions (building societies, credit unions and friendly societies) previously covered by the Financial Institutions Scheme. ASIC becomes responsible for the corporate regulation of these institutions.

The Electronic Funds Transfer (EFT) working group convened by ASIC releases a discussion paper calling for the EFT Code of Conduct to be expanded.

APRA announces the formal removal of the Prime Assets Requirement (PAR). Under new prudential guidelines dealing with liquidity management, each bank will manage its liquidity according to policies agreed individually with APRA.

The Council of Financial Regulators releases its final edition of the booklet, Year 2000 Preparations in the Australian Banking and Financial System.

ASIC and APRA announce new requirements for financial reports of benefit funds and friendly societies registered under the Life Insurance Act 1995.

APRA releases for comment three Policy Discussion Papers on the prudential supervision regime for general insurers.

APRA issues amendments to its capital requirements which permit banks, in certain circumstances, to recognise bilateral close-out netting agreements for capital adequacy purposes.

RBA releases a report, Reducing Foreign Exchange Settlement Risk in Australia – A Progress Report, based on a survey of foreign exchange dealers.

The Payments System Board and the ACCC announce that they are to undertake a joint study into interchange fees for debit and credit cards, and membership criteria for credit cards.

ASIC approves its first complaints resolution scheme, under its new policy dealing with complaints about licensees who provide investment advice to retail investors.

The Minister for Financial Services and Regulation releases the results of a research project on consumer financial education material carried out by the Financial Services Consumer Policy Centre and commissioned by ASIC's Consumer Advisory Panel.

APRA releases for comment a second Policy Discussion Paper on the prudential supervision of conglomerates.

RBA announces that the Sydney Futures Exchange Clearing House has been granted an Exchange Settlement Account, the first approval under the more liberal access arrangements announced in March.

RBA announces that the Austraclear System and the Australian Payments Clearing Association's High Value Clearing System have been declared ‘approved multilateral netting arrangements’ under the Payments Systems and Netting Act 1998.

APRA and the ACCC release a Memorandum of Understanding setting out an agreed basis for policy co-ordination and information sharing.

ASIC and APRA release an interim policy for the treatment of mutual organisations under the Corporations Law and the Banking Act 1959.

APRA issues a statement setting out the requirements to be considered by APRA-supervised entities in determining whether, and how, to use the services of a custodian.

APRA releases for comment a draft Prudential Standard on liquidity management for all ADIs.

The Superannuation Legislation Amendment Act (No. 4) 1999 receives Royal Assent. This Act amends the existing investment restrictions applying to superannuation funds under the Superannuation Industry (Supervision) Act 1993.