Financial Sector Reform (South Australia) Act 1999

This Act implements the State-level mechanics necessary to transfer responsibility for prudential regulation of certain mutual financial institutions (building societies, credit unions and friendly societies) from South Australian supervisory bodies to Commonwealth regulators, and to preserve and wind up State arrangements that existed immediately before the transfer. Mechanically, it confers functions and powers on the Commonwealth prudential authority (APRA) and on the corporate and markets regulator (ASIC) (ss 5-6), preserves and transfers assets, liabilities and staff of two State bodies (AFIC and SAOFS) through transfer agreements (Parts 3 and 4, especially ss 10, 14, 17, 18), continues specified provisions of the repealed South Australian Codes for enforcement of conduct before the transfer date (Part 5, ss 26-30), and deals with a range of transitional matters (Part 6, ss 31-36). The Act also removes State tax and registration obstacles to the transfers (ss 37-38) and declares the Act effective despite contrary contractual instruments (s 39).

The instrument’s stated purpose is to “facilitate the transfer to the Commonwealth of responsibility for regulating building societies, credit unions and friendly societies as companies under the Corporations Law” (long title). The operative mechanics that achieve that are: conferral of functions and powers on APRA and ASIC (ss 5-6); power for Ministers to enter into transfer agreements under schedules of the Commonwealth Reform Act to vest assets and liabilities (ss 14, 17); conversion of particular instruments and memberships (for example, withdrawable shares converted to deposits, s 32); treatment of dormant accounts (s 31); and continuation of enforcement and prosecutorial capacity through substitution of APRA or ASIC for State bodies in existing civil and criminal proceedings (ss 15-16, 23-24, 26).

South Australia Financial Sector Reform (South Australia) Act 1999 An Act to facilitate the transfer to the Commonwealth of responsibility for regulating building societies, credit unions and friendly societies as companies under the Corporations Law; to provide for transitional matters; and for other purposes.

Contents Part 1—Preliminary 1 Short title 4 Interpretation Part 2—Conferral of functions and powers on APRA and ASIC 5 Conferral of functions and powers on APRA 6 Conferral of functions and powers on ASIC 6A Administrative functions and powers conferred on relevant Commonwealth bodies Part 3—Provisions relating to AFIC Division 1—AFIC to continue 7 Continuation of AFIC for certain purposes 8 Delegation of AFIC's powers Division 2—Provisions about AFIC's staff 9 Interpretation 10 Transfer of staff to APRA under transfer agreement 11 Effect of transfer under section 10 or of employees of AFIC becoming appointed to the Australian Public Service 12 Statement of accrued benefits etc Division 3—Information may be given to APRA or ASIC 13 Giving of information Division 4—Transfer of AFIC's assets and liabilities 14 Transfer of assets and liabilities Division 5—Proceedings involving AFIC 15 Continuation and preservation of certain civil proceedings involving AFIC 16 Continuation of certain offence proceedings Part 4—Provisions relating to SAOFS Division 1—Transfer of SAOFS' assets and liabilities 17 Transfer of assets and liabilities Division 2—Provisions about SAOFS' staff 18 Transfer of staff to APRA under transfer agreement 19 Effect of transfer to APRA or APS 20 Statement of accrued benefits etc Division 3—Winding up of Funds 21 Supervision Fund 22 Credit Unions Contingency Fund Division 4—Proceedings involving SAOFS 23 Continuation and preservation of civil proceedings involving SAOFS 24 Continuation of certain offence proceedings Division 5—Information may be given by SAOFS 25 Giving of information Part 5—Enforcement by APRA and ASIC of repealed Codes 26 Conferral of enforcement powers on APRA and ASIC 27 AFIC Code provisions 28 Financial Institutions Code provisions 29 Friendly Societies Code provisions 30 Conferral of functions and powers Part 6—Other transitional provisions 31 Dormant accounts 32 Withdrawable shares in building societies 33 Matters in relation to deregistered financial bodies and societies 34 Mergers and transfers of engagements commenced under Financial Institutions (South Australia) Code 35 Mergers and transfers of engagements commenced under Friendly Societies (South Australia) Code 36 Australian Financial Institutions Appeals Tribunal Part 7—Miscellaneous 37 Registration or record of transfer 38 Exemption from State taxes 39 Relationship of Act with other laws 40 Regulations Legislative history

The Parliament of South Australia enacts as follows: Part 1—Preliminary 1—Short title This Act may be cited as the Financial Sector Reform (South Australia) Act 1999. 4—Interpretation (1) In this Act— AFIC means the Australian Financial Institutions Commission established by the AFIC Act; AFIC Act means the Australian Financial Institutions Commission Act 1992 of Queensland; AFIC Code means— (a) the AFIC (South Australia) Code; and (b) the AFIC (South Australia) Regulations, as in force immediately before the transfer date; APRA means the Australian Prudential Regulation Authority; APRA Act means the Australian Prudential Regulation Authority Act 1998 of the Commonwealth; APRA employee means a person appointed under section 45 of the APRA Act; ASIC means the Australian Securities and Investments Commission; Commonwealth Reform Act means the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 of the Commonwealth; Credit Unions Contingency Fund means the fund of that name established under the Financial Institutions Code; employee, in relation to AFIC, includes a person engaged by AFIC on a contract for services; enforcement power means a function or power relating to— (a) the investigation of an offence; or (b) the institution and carrying on of a prosecution of an offence; or (c) matters relating to an investigation or prosecution of an offence; Financial Institutions Code or Financial Institutions (South Australia) Code means— (a) the Financial Institutions (South Australia) Code; and (b) the Financial Institutions (South Australia) Regulations, as in force immediately before the transfer date; financial institutions legislation has the same meaning as in section 8 of the AFIC Code; fiscal bodies legislation has the same meaning as in section 3 of the AFIC Code; Friendly Societies Code or Friendly Societies (South Australia) Code means— (a) the Friendly Societies (South Australia) Code; and (b) the Friendly Societies (South Australia) Regulations, as in force immediately before the transfer date; relevant Commonwealth body means APRA or ASIC; SAOFS means the South Australian Office of Financial Supervision; SSA means State Supervisory Authority; Supervision Fund means the fund of that name established under the Financial Institutions Code; transfer date means the date that, under section 3(16) of the Commonwealth Reform Act, is specified as the transfer date for the purposes of that Act. (2) In this Act, a reference to a Commonwealth Act includes a reference to— (a) that Commonwealth Act as amended and in force for the time being; and (b) an Act enacted in substitution for that Act. Part 2—Conferral of functions and powers on APRA and ASIC 5—Conferral of functions and powers on APRA (1) APRA has the functions and powers conferred or expressed to be conferred on it by or under this Act. (2) APRA has power to do acts in South Australia in the performance or exercise of any function or power conferred or expressed to be conferred on APRA by or under a law of another jurisdiction corresponding to this Act. 6—Conferral of functions and powers on ASIC (1) ASIC has the functions and powers conferred or expressed to be conferred on it by or under this Act. (2) ASIC has power to do acts in South Australia in the performance or exercise of any function or power conferred or expressed to be conferred on ASIC by or under a law of another jurisdiction corresponding to this Act. 6A—Administrative functions and powers conferred on relevant Commonwealth bodies (1) In this section— administrative action has the same meaning as it has in the Corporations (Administrative Actions) Act 2001; APRA or ASIC action means an administrative action taken, or purportedly taken, by APRA or ASIC pursuant to a function or power conferred, or purportedly conferred, by or under this Act; confer includes impose. (2) The Corporations (Administrative Actions) Act 2001 applies in relation to an APRA or ASIC action as if this Act were a relevant State Act within the meaning of that Act. (3) This Act does not purport to confer any duty on APRA or ASIC to perform a function, or to exercise a power, conferred, or purportedly conferred, by or under this Act if the conferral of the duty would be beyond the legislative power of the Parliament of the State. (4) Subsection (3) does not limit the operation of section 22A of the Acts Interpretation Act 1915. Part 3—Provisions relating to AFIC Division 1—AFIC to continue 7—Continuation of AFIC for certain purposes (1) This section applies despite— (a) the repeal of the AFIC Act by the Financial Sector Reform (Queensland) Act 1999 of Queensland; and (b) the repeal of the Financial Institutions (Applications of Laws) Act 1992 by this Act. (2) AFIC and its board continue in existence, but only for the following purposes: (a) to give effect to matters relating to the transfer, under a law of the Commonwealth or of another State or a Territory or this Act, of any of its functions under the fiscal bodies legislation to APRA or ASIC; (b) to prepare reports and financial statements. 8—Delegation of AFIC's powers (1) AFIC's board may delegate AFIC's powers to an appropriately qualified employee of AFIC. (2) In subsection (1)— appropriately qualified includes having the qualifications, experience or standing appropriate to exercise the power. Division 2—Provisions about AFIC's staff 9—Interpretation In this Division— employee of AFIC includes the executive director of AFIC. 10—Transfer of staff to APRA under transfer agreement (1) The Queensland Minister administering the Financial Sector Reform (Queensland) Act 1999 of Queensland may enter into a transfer agreement under Division 2 of Part 1 of Schedule 8 of the Commonwealth Reform Act, that determines, or provides for determining, that particular employees of AFIC become APRA employees on a particular date, not being a date before the transfer date. (2) The transfer agreement has effect according to its terms. 11—Effect of transfer under section 10 or of employees of AFIC becoming appointed to the Australian Public Service (1) This section applies if a person becomes an APRA employee under section 10. (2) This section also applies if— (a) a person is appointed to the Australian Public Service under section 81B(1) of the Public Service Act 1922 of the Commonwealth on or after the transfer date; and (b) immediately before the appointment, the person was an employee of AFIC. (3) If the person is the executive director of AFIC, the executive director's appointment under the AFIC Code immediately ends. (4) If the person is another employee of AFIC, the employee's employment with AFIC immediately ends. (5) A person is not entitled to receive any payment or other benefit, whether under a contract or otherwise, because the person's appointment or employment ends under this section. 12—Statement of accrued benefits etc Before an employee of AFIC becomes an APRA employee under section 10 or is appointed to the Australian Public Service as mentioned in section 11(2), AFIC must give the person, and APRA or the Commonwealth Public Service Commissioner, a written statement stating particulars of the benefits to which the person has an accrued entitlement, the person's remuneration and the person's length of service with AFIC. Division 3—Information may be given to APRA or ASIC 13—Giving of information (1) This section applies to— (a) a director of AFIC's board; and (b) an employee of AFIC; and (c) a person appointed by AFIC to carry out duties under the fiscal bodies legislation; and (d) a person who has been a person mentioned in paragraph (a), (b) or (c). (2) A person to whom this section applies may disclose to APRA or ASIC information the person acquired while engaged in the administration of the fiscal bodies legislation. (3) This section applies despite section 155 of the AFIC Code and section 477 of the Friendly Societies Code. Division 4—Transfer of AFIC's assets and liabilities 14—Transfer of assets and liabilities (1) The Queensland Minister administering the Financial Sector Reform (Queensland) Act 1999 of Queensland may enter into a transfer agreement under Division 3 of Part 1 of Schedule 8 of the Commonwealth Reform Act connected with the transfer of AFIC's assets or liabilities to APRA or ASIC. (2) The transfer agreement has effect according to its terms. Division 5—Proceedings involving AFIC 15—Continuation and preservation of certain civil proceedings involving AFIC (1) This section applies to a proceeding— (a) whether or not it arose or arises under the fiscal bodies legislation; and (b) regardless of where it arose or arises. (2) For the purposes of a proceeding commenced before the transfer date to which AFIC was a party immediately before that date, the State of Queensland is substituted for AFIC as a party to the proceeding. (3) For the purposes of a proceeding not commenced before the transfer date and which— (a) could, if commenced after that date, be brought against AFIC; or (b) could have, but for the repeal of the Financial Institutions (Application of Laws) Act 1992 by this Act and the dissolution of AFIC, been brought against AFIC, the proceeding may instead be brought against the State of Queensland. (4) For the purposes of this section, evidence that would have been admissible for or against AFIC is admissible for or against the State of Queensland. (5) This section does not apply to a proceeding for an offence. 16—Continuation of certain offence proceedings (1) This section applies to a proceeding for an offence brought under section 63 of the AFIC Code by AFIC, or a person authorised in writing by AFIC, that commenced before the transfer date but was not completed before that date. (2) On and after the transfer date, the proceeding may continue to be prosecuted by either APRA or ASIC in place of AFIC, or the person authorised by AFIC, and APRA or ASIC may be substituted in the proceeding for AFIC or the person. (3) The functions and powers necessary for this section are conferred on APRA and ASIC. Note— See Part 5 for proceedings commencing after the transfer date. Part 4—Provisions relating to SAOFS Division 1—Transfer of SAOFS' assets and liabilities 17—Transfer of assets and liabilities (1) The Minister may enter into a transfer agreement under Division 3 of Part 1 of Schedule 8 of the Commonwealth Reform Act connected with the transfer of SAOFS's assets or liabilities to APRA or ASIC. (2) The transfer agreement has effect according to its terms. Division 2—Provisions about SAOFS' staff 18—Transfer of staff to APRA under transfer agreement (1) The Minister may enter into a transfer agreement under Division 2 of Part 1 of Schedule 8 of the Commonwealth Reform Act that determines, or provides for determining, that particular employees of SAOFS become APRA employees on a particular date, not being a date before the transfer date. (2) The transfer agreement has effect according to its terms. 19—Effect of transfer to APRA or APS (1) This section applies— (a) if a person becomes an APRA employee under section 18; or (b) if— (i) a person is appointed to the Australian Public Service under section 81B(1) of the Public Service Act 1922 of the Commonwealth on or after the transfer date; and (ii) immediately before the appointment, the person was an employee of SAOFS. (2) The person's employment with SAOFS immediately ends. (3) A person is not entitled to receive any payment or other benefit because the person's employment ends under this section. 20—Statement of accrued benefits etc Before an employee of SAOFS becomes an APRA employee under section 18 or is appointed to the Australian Public Service as mentioned in section 19(1)(b)(i), SAOFS must give the person, and APRA or the Commonwealth Public Service Commissioner, a written statement stating particulars of— (a) the person's remuneration; and (b) the person's accrued benefits and entitlements in respect of service with SAOFS and prior service recognised by SAOFS; and (c) the person's length of service with SAOFS and the length of prior service recognised by SAOFS. Division 3—Winding up of Funds 21—Supervision Fund (1) Despite the repeal of the Financial Institutions (Application of Laws) Act 1992, the Supervision Fund continues in existence until SAOFS has fulfilled its obligations under this section. (2) SAOFS must pay out of the Supervision Fund at such time or times as SAOFS determines— (a) to APRA— (i) such amount in respect of liabilities relating to leave or other entitlements of employees of SAOFS who become employees of APRA, being liabilities existing immediately before the date on which the relevant employees become employees of APRA, as is determined by SAOFS; and (ii) such amount in respect of any other liabilities of SAOFS that, by reason of this Act, become liabilities of APRA, as is determined by SAOFS; and (b) to ASIC— (i) such amount in respect of liabilities relating to leave or other entitlements of employees of SAOFS who become employees of ASIC, being liabilities existing immediately before the date on which the relevant employees become employees of ASIC, as is determined by SAOFS; and (ii) such amount in respect of any other liabilities of SAOFS that, by reason of this Act, become liabilities of ASIC, as is determined by SAOFS. (3) SAOFS must also pay out of the Supervision Fund— (a) any expenses incurred by SAOFS before the transfer date (see section 94(3) of the repealed Financial Institutions Code); and (b) any other expenses incurred by SAOFS before it is wound up under Part 5 of the South Australian Office of Financial Supervision Act 1992. (4) SAOFS must pay into the Supervision Fund all amounts that would be payable into the Fund were it not for the repeal of the Financial Institutions (Application of Laws) Act 1992.1 (5) The amount remaining (if any) in the Supervision Fund after compliance with subsections (2) and (3) must be distributed by SAOFS to each building society, credit union and friendly society that is a transferring financial institution under the Corporations Law, in such proportions as the Minister considers fair. Note— 1 Proceeds from the realisation of surplus SAOFS assets are also to be paid into the Supervision Fund: see Part 5 of the South Australian Office of Financial Supervision Act 1992. 22—Credit Unions Contingency Fund (1) On the day before the transfer date, SAOFS must, under section 99A of the Financial Institutions Code, distribute the whole of retained earnings to the contribution accounts of credit unions. (2) For the purposes of subsection (1), section 99A(3) of the Financial Institutions Code does not apply. (3) Immediately after SAOFS complies with subsection (1) it must pay from the Credit Unions Contingency Fund to each credit union the amount standing to the credit union's credit in the fund. (4) Subsection (3) applies despite section 103 of the Financial Institutions Code. (5) In this section— contribution accounts, of credit unions, means the parts of the Credit Unions Contingency Fund that, under section 98(10) of the Financial Institutions Code, are treated as a deferred asset in the accounts of the credit unions; retained earnings has the same meaning as in section 99A of the Financial Institutions Code. Division 4—Proceedings involving SAOFS 23—Continuation and preservation of civil proceedings involving SAOFS (1) For the purposes of a proceeding commenced before the transfer date to which SAOFS was a party immediately before that date, the State is substituted for SAOFS as a party to the proceeding. (2) For the purposes of a proceeding not commenced before the transfer date and which— (a) could, if commenced after that date, be brought against SAOFS; or (b) could have, but for the dissolution of SAOFS, been brought against SAOFS, the proceeding may instead be brought against the State. (3) For the purposes of this section, evidence that would have been admissible for or against SAOFS is admissible for or against the State. (4) This section does not apply to a proceeding for an offence. 24—Continuation of certain offence proceedings (1) This section applies to a proceeding for an offence brought under section 404 of the Financial Institutions Code or section 471 of the Friendly Societies Code by SAOFS, or a person authorised in writing by SAOFS, that commenced before the transfer date but was not completed by that date. (2) On and after the transfer date, the proceeding may continue to be prosecuted by either APRA or ASIC in place of SAOFS, or the person authorised by SAOFS, and APRA or ASIC may be substituted for SAOFS or the person. (3) The functions and powers necessary for this section are conferred on APRA and ASIC. Note— See Part 5 for proceedings commencing after the transfer date. Division 5—Information may be given by SAOFS 25—Giving of information (1) This section applies to— (a) a member of SAOFS; and (b) an employee of SAOFS; and (c) a person appointed by SAOFS for the purpose of carrying out duties under the fiscal bodies legislation; and (d) a person who has been a person mentioned in paragraph (a), (b) or (c). (2) A person to whom this section applies may disclose to APRA or ASIC or the Minister information the person acquired while engaged in the administration of the fiscal bodies legislation. (3) This section applies despite section 410 of the Financial Institutions Code and section 477 of the Friendly Societies Code. Part 5—Enforcement by APRA and ASIC of repealed Codes 26—Conferral of enforcement powers on APRA and ASIC (1) APRA and ASIC have the same enforcement powers relating to anything done or omitted to be done under a Code before the transfer date as AFIC or SAOFS had immediately before that date. (2) For the purposes of subsection (1), a Code applies with all necessary changes. (3) In this section— Code means— (a) the AFIC Code; or (b) the Financial Institutions Code; or (c) the Friendly Societies Code. 27—AFIC Code provisions (1) The following provisions continue to apply on and after the transfer date in relation to anything done or omitted to be done before that date: (a) Part 8 of the AFIC Code (except for sections 50, 51, 55 and 58); and (b) the other provisions of the Code relevant to that Part. (2) Despite subsection (1), a provision, or part of a provision, applying under that subsection that creates an offence is not limited in its application to anything done or omitted to be done before the transfer date. (3) For the purposes of subsection (1)— (a) a reference in the Code to AFIC is taken to be a reference to the relevant Commonwealth body; and (b) a reference in the Code to a financial institution is taken to be a reference to an entity that on the transfer date is a company under the Corporations Law and that, immediately before that date, was a financial institution under the Code; and (c) in section 52(1) of the Code, the words "the financial institutions scheme" are taken to be omitted and the words "investigating whether an offence against the fiscal bodies legislation has been committed" are taken to be substituted; and (d) a reference in section 52(1)(a) or (b) of the Code to an employee of AFIC or of a State supervisory authority is taken to be a reference to an employee of the relevant Commonwealth body; and (e) section 52(5) of the Code is taken to be omitted; and (f) a reference in section 53(1) or (2) of the Code to the executive director is taken to be a reference to the relevant Commonwealth body; and (g) a reference in section 53(5) of the Code to officers and employees of the State supervisory authorities is taken to be a reference to officers and employees of the relevant Commonwealth body; and (h) section 63(1A) and (1B) of the Code are taken to be omitted; and (i) a reference in section 63(2) of the Code to the Ministerial Council is taken to be a reference to the Minister administering this Act; and (j) the Code applies with all other necessary changes. (4) This section does not limit section 26. 28—Financial Institutions Code provisions (1) The following provisions continue to apply on and after the transfer date in relation to anything done or omitted to be done before that date: (a) Subdivision 1A of Division 2 of Part 2 (except for sections 75, 79 and 82), Part 10 and sections 392, 397, 398 and 404 of the Financial Institutions Code; and (b) the other provisions of the Code relevant to the provisions mentioned in paragraph (a). (2) Despite subsection (1), a provision, or part of a provision, applying under that subsection that creates an offence is not limited in its application to anything done or omitted to be done before the transfer date. (3) For the purposes of subsection (1)— (a) a reference in the Code to the SSA is taken to be a reference to the relevant Commonwealth body; and (b) a reference in the Code to a financial body is taken to be a reference to an entity that on the transfer date is a company under the Corporations Law and that, immediately before that date, was a financial body under the Code; and (c) a reference in the Code to a society is taken to be reference to an entity that on the transfer date is a company under the Corporations Law and that, immediately before that date, was a society under the Code; and (d) in section 76(1) of the Code, the words "the financial institutions legislation" are taken to be omitted and the words "investigating whether an offence against the financial institutions legislation has been committed" are taken to be substituted; and (e) a reference in section 76(1)(a) or (b) of the Code to an employee of the SSA is taken to be a reference to an employee of the relevant Commonwealth body; and (f) section 76(5) of the Code is taken to be omitted; and (g) in the definition of financial body to which this section applies in section 397(1) of the Code, paragraphs (a), (b), (d), (e) and (f) are taken to be omitted; and (h) section 397(2) of the Code is taken to be omitted; and (i) in the definition of financial body to which this section applies in section 398(1) of the Code, paragraphs (a), (b), (d), (e) and (f) are taken to be omitted; and (j) in the definition of prescribed person in section 398(1) of the Code, paragraphs (a) and (b) are taken to be omitted; and (k) section 398(2) of the Code is taken to be omitted; and (l) a reference in section 404(2) of the Code to the Minister is taken to be a reference to the Minister administering this Act; and (m) the Code applies with all other necessary changes. (4) This section does not limit section 26. 29—Friendly Societies Code provisions (1) The following provisions continue to apply on and after the transfer date in relation to anything done or omitted to be done before that date: (a) Subdivision 2 of Division 2 of Part 2 (except for sections 31, 35 and 38), Divisions 3 and 4 of Part 4A, Part 10 and sections 460, 465, 466 and 471 of the Friendly Societies Code; and (b) the other provisions of the Code relevant to the provisions mentioned in paragraph (a). (2) Despite subsection (1), a provision, or part of a provision, applying under that subsection that creates an offence is not limited in its application to anything done or omitted to be done before the transfer date. (3) For the purposes of subsection (1)— (a) a reference in the Code to the SSA is taken to be a reference to the relevant Commonwealth body; and (b) a reference in the Code to a society is taken to be a reference to an entity that on the transfer date is a company under the Corporations Law and that, immediately before that date, was a society under the Code; and (c) in section 32(1) of the Code, the words "the friendly societies legislation" are taken to be omitted and the words "investigating whether an offence against the friendly societies legislation has been committed" are taken to be substituted; and (d) a reference in section 32(1)(a) or (b) of the Code to an employee of the SSA is taken to be a reference to an employee of the relevant Commonwealth body; and (e) section 32(4) of the Code is taken to be omitted; and (f) in the definition of society to which this section applies in section 465(1) of the Code, paragraphs (a), (b), (d), (e) and (f) are taken to be omitted; and (g) section 465(2) of the Code is taken to be omitted; and (h) in the definition of society to which this section applies in section 466(1) of the Code, paragraphs (a), (b), (d), (e) and (f) are taken to be omitted; and (i) in the definition of prescribed person in section 466(1) of the Code, paragraphs (a) and (b) are taken to be omitted; and (j) section 466(2) of the Code is taken to be omitted; and (k) a reference in section 471(2) of the Code to the Minister is taken to be a reference to the Minister administering this Act; and (l) the Code applies with all other necessary changes. (4) This section does not limit section 26. 30—Conferral of functions and powers The functions and powers necessary for the purposes of this Part are conferred on APRA and ASIC. Part 6—Other transitional provisions 31—Dormant accounts (1) This section applies if— (a) before the transfer date a society transferred an amount from a person's deposit account with the society to another account under section 138A(4)(c) of the Financial Institutions Code; and (b) immediately before the transfer date the amount has not been lawfully totally paid out as mentioned in section 138A(6)(b) of that Code. (2) Immediately before the transfer date the amount remaining in that other account for the person is taken to have been transferred back to the person's deposit account as if the deposit account had never been classified as a dormant account or closed under section 138A of the Financial Institutions Code. (3) In this section— society means an entity that, immediately before the transfer date, was a society under the Financial Institutions (South Australia) Code. 32—Withdrawable shares in building societies (1) A person who, immediately before the transfer date, was entitled to a withdrawable share of a building society, is taken to have become on that date the holder of a deposit with the building society of an amount equal to the amount paid up on the share. (2) Any withdrawable shares of a building society on issue immediately before the transfer date and converted to deposits under subsection (1) are taken to have been cancelled. (3) Despite the cancellation of a person's withdrawable shares under subsection (2), the person continues as a member of the building society but is otherwise subject to the rules of the society. (4) In this section— building society means a transferring financial institution of this jurisdiction (within the meaning of Part 1 of Schedule 4 to the Corporations Law) authorised under the Financial Institutions Code to operate as a building society immediately before the transfer date; withdrawable share means a withdrawable share within the meaning of the Financial Institutions Code. 33—Matters in relation to deregistered financial bodies and societies (1) This section applies to an entity that was, at some time before the transfer date— (a) a society under the Financial Institutions Code or the Friendly Societies Code; or (b) a building society under the Building Societies Act 1990 or a corresponding previous enactment; or (c) a credit union under the Credit Unions Act 1989 or a corresponding previous enactment; or (d) a friendly society under the Friendly Societies Act 1919, and the registration of which had been cancelled under an applicable law before that date. (2) If property formerly vested in an entity to which this section applies vests in ASIC under section 17 and was held by that entity on trust, ASIC may— (a) continue to act as trustee; or (b) apply to a court for the appointment of a new trustee. (3) If any property formerly so vested was not held by the entity on trust, ASIC— (a) may dispose of or deal with the property as it sees fit; and (b) may apply any money it receives to— (i) defray expenses incurred by ASIC in exercising its powers in relation to the entity; and (ii) make payments authorised by subsection (4); and (c) must deal with the balance (if any) of that money under Part 9.7 of the Corporations Act 2001 of the Commonwealth as applying under this section. (3a) Money received by ASIC on a disposal of, or dealing with, property of an entity under subsection (3)(a) that is not applied under subsection (3)(b) is declared to be an applied Corporations legislation matter for the purposes of Part 3 of the Corporations (Ancillary Provisions) Act 2001 in relation to the provisions of Part 9.7 of the Corporations Act 2001 of the Commonwealth as if the entity had been a company. (3b) For the purposes of subsection (3a), Part 3 of the Corporations (Ancillary Provisions) Act 2001 has effect as if that Part did not contain sections 16(1)(b) and 17. (4) The property remains subject to all liabilities imposed on the property under a law and does not have the benefit of any exemption that the property might otherwise have because it is vested in ASIC. (5) ASIC's obligation under subsection (4) is limited to satisfying the liabilities out of the entity's property to the extent that the property is properly available to satisfy those liabilities. (6) ASIC must keep— (a) a record of the property to which this section applies; and (b) a record of its dealings with that property; and (c) accounts of all money received from those dealings; and (d) all accounts, vouchers, receipts and papers relating to the property and that money. (7) ASIC may do an act on behalf of the entity or the entity's liquidator if ASIC is satisfied that the entity or liquidator would be bound to do the act if the entity still existed. (8) A person may recover from an insurer of the entity an amount that was payable to the entity under the insurance contract if— (a) the entity had a liability to the person; and (b) the insurance contract covered the liability immediately before the cancellation of the registration. (9) The functions and powers that are necessary for the purposes of this section are conferred on ASIC. 34—Mergers and transfers of engagements commenced under Financial Institutions (South Australia) Code (1) This section applies if a transfer of engagements or merger commenced before the transfer date under Part 7 of the Financial Institutions (South Australia) Code and immediately before that date has not been completed, or been given effect. (2) The transfer of engagements or merger may be completed, or be given effect, under Part 7 of the Financial Institutions (South Australia) Code on or after the transfer date and, for that purpose, that Part and other provisions of the Code relevant to that Part continue to apply. (3) For the purposes of subsection (2)— (a) a reference in the Financial Institutions (South Australia) Code to the SSA is taken to be a reference to the relevant Commonwealth body; and (b) a reference in the Financial Institutions (South Australia) Code to the SSA of a participating State is taken to be a reference to the relevant Commonwealth body; and (c) the Financial Institutions (South Australia) Code applies with all other necessary changes. (4) For the purposes of this section, a transfer of engagements was commenced before the transfer date under Part 7 of the Financial Institutions (South Australia) Code if, before that date— (a) one of the following conditions was satisfied in relation to each society or foreign society involved: (i) the transfer was approved by a special resolution of the society or foreign society, in accordance with the relevant Financial Institutions Code; or (ii) the relevant SSA made a determination, under the relevant Financial Institutions Code, that the transfer may be approved by the board of the society or foreign society; or (b) in a case where each entity involved in the transfer is a society, SAOFS gave a direction, under the Financial Institutions (South Australia) Code, requiring the transfer. (5) For the purposes of this section, a merger was commenced before the transfer date if, before that date, one of the following conditions was satisfied in relation to each society or foreign society involved: (a) the merger was approved by a special resolution of the society or foreign society, in accordance with the relevant Financial Institutions Code; or (b) the relevant SSA made a determination, under the relevant Financial Institutions Code, that the merger may be approved by the board of the society or foreign society. (6) The functions and powers of SAOFS that are necessary for the purposes of this section are conferred on the relevant Commonwealth body. (7) In this section— financial institutions agreement has the same meaning as in section 3 of the AFIC Code; foreign society means a body corporate that, before the transfer date, was a society under the financial institutions legislation of another participating State, whether or not it was registered as a foreign society under Part 11 of the Financial Institutions (South Australia) Code; participating State means a State or Territory that, immediately before the transfer date, was a party to the financial institutions agreement and in which, immediately before that date, the foreign society was incorporated; relevant Financial Institutions Code means— (a) in relation to a society, the Financial Institutions (South Australia) Code; or (b) in relation to a foreign society, the law of another participating State corresponding to the Financial Institutions (South Australia) Code; relevant SSA means— (a) in relation to a society, SAOFS; or (b) in relation to a foreign society, the State Supervisory Authority under the financial institutions legislation of the other participating State; society means an entity that, immediately before the transfer date, was a society under the Financial Institutions (South Australia) Code. 35—Mergers and transfers of engagements commenced under Friendly Societies (South Australia) Code (1) This section applies if a transfer of engagements or merger commenced before the transfer date under Part 7 of the Friendly Societies (South Australia) Code and immediately before that date has not been completed, or been given effect. (2) The transfer of engagements or merger may be completed, or be given effect, under Part 7 of the Friendly Societies (South Australia) Code on or after the transfer date and, for that purpose, that Part and other provisions of the Code relevant to that Part continue to apply. (3) For the purposes of subsection (2)— (a) a reference in the Friendly Societies (South Australia) Code to the SSA is taken to be a reference to the relevant Commonwealth body; and (b) a reference in the Friendly Societies (South Australia) Code to the SSA of a participating State is taken to be a reference to the relevant Commonwealth body; and (c) the Friendly Societies (South Australia) Code applies with all other necessary changes. (4) For the purposes of this section, a transfer of engagements was commenced before the transfer date under Part 7 of the Friendly Societies (South Australia) Code if, before that date— (a) one of the following conditions was satisfied in relation to each society or foreign society involved: (i) the transfer was approved by a special resolution of the society or foreign society, in accordance with the relevant Friendly Societies Code; or (ii) the relevant SSA made a determination, under the relevant Friendly Societies Code, that the transfer may be approved by the board of the society or foreign society; or (b) in a case where each entity involved in the transfer is a society, SAOFS gave a direction, under the Friendly Societies (South Australia) Code, requiring the transfer. (5) For the purposes of this section, a merger was commenced before the transfer date if, before that date, one of the following conditions was satisfied in relation to each society or foreign society involved: (a) the merger was approved by a special resolution of the society or foreign society in accordance with the relevant Friendly Societies Code; or (b) the relevant SSA made a determination, under the relevant Friendly Societies Code, that the merger may be approved by the board of the society or foreign society. (6) The functions and powers of SAOFS that are necessary for the purposes of this section are conferred on the relevant Commonwealth body. (7) In this section— financial institutions agreement has the same meaning as in section 3 of the AFIC Code; foreign society means a body corporate that, before the transfer date, was a society under the friendly societies legislation of another participating State, whether or not it was registered as a foreign society under Part 11 of the Friendly Societies (South Australia) Code; friendly societies legislation has the same meaning as in section 8A of the AFIC Code; participating State means a State or Territory which, immediately before the transfer date, was a party to the financial institutions agreement and in which, immediately before that date, the foreign society was incorporated; relevant Friendly Societies Code means— (a) in relation to a society, the Friendly Societies (South Australia) Code; or (b) in relation to a foreign society, the law of another participating State corresponding to the Friendly Societies (South Australia) Code; relevant SSA means— (a) in relation to a society, SAOFS; or (b) in relation to a foreign society, the State Supervisory Authority under the friendly societies legislation of the other participating State; society means an entity that, immediately before the transfer date, was a society under the Friendly Societies (South Australia) Code. 36—Australian Financial Institutions Appeals Tribunal (1) All applications made to the Australian Financial Institutions Appeal Tribunal under a Code for review of a decision that have not been decided are taken to have been withdrawn on the transfer date. (2) In this section— Code means— (a) the AFIC Code; or (b) the Financial Institutions Code; or (c) the Friendly Societies Code. Part 7—Miscellaneous 37—Registration or record of transfer (1) The Registrar-General or any other authority required or authorised under a law of the State to register or record transactions affecting assets or liabilities, or documents relating to such transactions, must, on application under this section accompanied by such documents evidencing a transaction under a transfer agreement given effect to by this Act as the Registrar-General or other authority may require, register or record in an appropriate manner the transfer or transfers to which the application relates. (2) No fee is payable in respect of an application under subsection (1). 38—Exemption from State taxes (1) No stamp duty or other duty or tax is chargeable under any Act in respect of anything effected by or done under a transfer agreement given effect to by this Act. (2) No obligation arises under an Act for the assessment or imposition of any such duty or tax— (a) to lodge a statement or return relating to the vesting of an asset under such a transfer agreement; or (b) to include information about such vesting in a statement or return. 39—Relationship of Act with other laws (1) This Act has effect despite anything in a contract, deed, undertaking, agreement or other instrument. (2) Nothing effected by or done under this Act— (a) places a receiving body, a transferring body or another person in breach of contract or confidence or otherwise makes any of them guilty of a civil wrong; or (b) places a receiving body, a transferring body or another person in breach of— (i) a law of the State; or (ii) a contractual provision prohibiting, restricting or regulating the assignment or transfer of an asset or liability or the disclosure of information; or (c) releases a surety, wholly or partly, from all or any of the surety's obligations. (3) Without limiting subsection (1), if, apart from this section, the advice or consent of a person would be necessary in a particular respect, the advice is taken to have been obtained or the consent is taken to have been given. 40—Regulations The Governor may make such regulations as are necessary or expedient for the purposes of this Act. Legislative history Notes • For further information relating to the Act and subordinate legislation made under the Act see the Index of South Australian Statutes or www.legislation.sa.gov.au. Legislation repealed by principal Act The Financial Sector Reform (South Australia) Act 1999 repealed the following: Financial Institutions (Application of Laws) Act 1992 Friendly Societies (South Australia) Act 1997 Legislation amended by principal Act The Financial Sector Reform (South Australia) Act 1999 amended the following: Aboriginal Lands Trust Act 1966 Acts Interpretation Act 1915 Adelaide Festival Theatre Act 1964 Administration and Probate Act 1919 Associations Incorporation Act 1985 Bank Mergers (South Australia) Act 1997 Benefit Associations Act 1958 Botanic Gardens and State Herbarium Act 1978 Business Names Act 1996 Carrick Hill Trust Act 1985 Community Titles Act 1996 Conveyancers Act 1994 Co-operatives Act 1997 Corporations (South Australia) Act 1990 Criminal Assets Confiscation Act 1996 Criminal Law Consolidation Act 1935 Da Costa Samaritan Fund (Incorporation of Trustees) Act 1953 Economic Development Act 1993 Enfield General Cemetery Act 1944 Enforcement of Judgments Act 1991 Evidence Act 1929 Fair Trading Act 1987 Family and Community Services Act 1972 Firearms Act 1977 The Flinders University of South Australia Act 1966 Government Financing Authority Act 1982 History Trust of South Australia Act 1981 Holidays Act 1910 Housing and Urban Development (Administrative Arrangements) Act 1995 Industrial and Employee Relations Act 1994 Land Agents Act 1994 Landlord and Tenant Act 1936 Legal Practitioners Act 1981 Local Government Finance Authority Act 1983 Motor Accident Commission Act 1992 Oaths Act 1936 Outback Areas Community Development Trust Act 1978 Pay-roll Tax Act 1971 Pharmacists Act 1991 Primary Industry Funding Schemes Act 1998 Public Charities Funds Act 1935 Public Finance and Audit Act 1987 Public Trustee Act 1995 Renmark Irrigation Trust Act 1936 Residential Tenancies Act 1995 Retail and Commercial Leases Act 1995 Retirement Villages Act 1987 Security and Investigation Agents Act 1995 South Australian Co-operative and Community Housing Act 1991 South Australian Housing Trust Act 1995 South Australian Motor Sport Act 1984 South Australian Multicultural and Ethnic Affairs Commission Act 1980 South Australian Office of Financial Supervision Act 1992 South Australian Tourism Commission Act 1993 State Lotteries Act 1966 Strata Titles Act 1988 Supreme Court Act 1935 Taxation Administration Act 1996 Trustee Act 1936 Unclaimed Moneys Act 1891 West Beach Recreation Reserve Act 1987 Wheat Marketing Act 1989 WorkCover Corporation Act 1994 Wrongs Act 1936 Principal Act and amendments New entries appear in bold. Year No Title Assent Commencement 1999 33 Financial Sector Reform (South Australia) Act 1999 17.6.1999 17.6.1999: s 2(1) except ss 3, 5—8, 15, 16, 21, 23, 24, 26—30, 32—36 and Sch (item 53(a), (c)—(j) & (n))—1.7.1999 being the date specified under section 3(16) of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 of the Commonwealth as the transfer date for the purposes of that Act: s 2(2) 2001 23 Statutes Amendment (Corporations) Act 2001 14.6.2001 Pt 15 (ss 74 & 75)—15.7.2001 being the day on which the Corporations Act 2001 of the Commonwealth came into operation: Commonwealth of Australia Gazette No. S 285, 13 July 2001 (Gazette 21.6.2001 p2270) Provisions amended New entries appear in bold. Entries that relate to provisions that have been deleted appear in italics. Provision How varied Commencement Long title amended under Legislation Revision and Publication Act 2002

Pt 1

ss 2 and 3 omitted under Legislation Revision and Publication Act 2002

Pt 2

s 6A inserted by 23/2001 s 74 15.7.2001 Pt 6

s 33

s 33(3) amended by 23/2001 s 75(a) 15.7.2001 s 33(3a) and (3b) inserted by 23/2001 s 75(b) 15.7.2001 Sch omitted under Legislation Revision and Publication Act 2002

1 Financial Sector Reform (South Australia) Act 1999

The Act organises several recurring legal constructs and implements multiple transitional concepts. Below are the main concepts expressed in the text and where they appear.

Conferral of powers to Commonwealth bodies (ss 5-6, 30). APRA and ASIC are given the functions and powers “conferred or expressed to be conferred” on them by the Act (ss 5(1), 6(1)). The Act also confers “the functions and powers necessary” for Part 5 enforcement on APRA and ASIC (s 30).
Transfer agreements under Commonwealth schedules (ss 10, 14, 17, 18). The Act repeatedly authorises Ministers to enter into transfer agreements “under Division 2/3 of Part 1 of Schedule 8 of the Commonwealth Reform Act” to effect staff, asset and liability transfers (ss 10, 14, 17, 18). Those transfer agreements take effect “according to their terms” (ss 10(2), 14(2), 17(2), 18(2)).
Preservation and substitution for pending and future proceedings (ss 15-16, 23-24). For civil proceedings in which AFIC or SAOFS were parties before the transfer date, substitution is required (the State of Queensland for AFIC (s 15(2)), the State for SAOFS (s 23(1))). For certain incompleted offence proceedings commenced before the transfer date, APRA or ASIC may continue the prosecution and be substituted as the prosecuting party (ss 16(2), 24(2)).
Continuation of Code provisions for enforcement of pre-transfer conduct (Part 5, ss 26-29). The Act preserves specified parts of the AFIC, Financial Institutions and Friendly Societies Codes as they apply to acts or omissions before the transfer date, with textual adaptations (for example references to SSA or AFIC read as “the relevant Commonwealth body”) (ss 27-29). Notably, provisions that create offences are not limited to pre-transfer conduct (see ss 27(2), 28(2), 29(2)).
Employee transfer and accrued benefits (ss 10-12, 18-20). The Act contemplates staff becoming APRA employees; where transfer occurs, the State employment ends immediately (ss 11(3)-(4), 19(2)) and no payment is payable merely because employment ends (ss 11(5), 19(3)). AFIC and SAOFS must provide written statements of accrued benefits etc before transfer (ss 12, 20).
Treatment of State funds and member rights (ss 21-22, 31-32). SAOFS’s Supervision Fund and the Credit Unions Contingency Fund are preserved until SAOFS fulfils obligations (s 21(1)); SAOFS must make specific payments from the Supervision Fund to APRA/ASIC for liabilities associated with employees who transfer and other liabilities that become liabilities of APRA or ASIC (s 21(2)), and distribute any surplus to transferring institutions as the Minister considers fair (s 21(5)). Withdrawable shares in building societies convert to deposits on the transfer date (s 32). Dormant-account transfers effected under the Financial Institutions Code are treated as reversed immediately before the transfer date, restoring deposit accounts (s 31).
Information disclosure and secrecy overrides (ss 13, 25). Persons previously bound by State supervisory secrecy provisions (for AFIC and SAOFS) are explicitly permitted to disclose to APRA or ASIC information they acquired under fiscal bodies legislation (ss 13(2), 25(2)). The Act states these permissions operate “despite” specified Code secrecy sections (ss 13(3), 25(3)).
Non-derogation and overriding effect (s 39). The Act states it has effect despite anything in contracts or instruments (s 39(1)), and that actions under the Act do not put receiving or transferring bodies in breach of contract or law (s 39(2)). If particular advice or consent would otherwise be necessary, that advice/consent is “taken to have been obtained” (s 39(3)).
Administrative-law overlay (s 6A). The Corporations (Administrative Actions) Act 2001 is applied to APRA and ASIC actions taken pursuant to functions conferred by this Act (s 6A(2)), identifying a framework for merits review and administrative-action obligations. The section also contains a textual limitation that the Act does not purport to confer duties on APRA or ASIC if that conferral would be beyond the State’s legislative power (s 6A(3)).

These concepts are not merely descriptive. The Act creates transferability, substitution, continuity of enforcement, and administrative-law visibility while setting explicit treatments for staff, funds and member rights. Each main concept is implemented with specific statutory text that modifies existing Codes, prescribes substitutions in proceedings and delegates authority to enter transfer agreements.

The Act affects a discrete set of institutional actors, persons and categories of property and rights; the statutory text identifies them precisely.

Commonwealth bodies: APRA and ASIC are the principal receiving bodies. Sections 5 and 6 confer functions and powers on APRA and ASIC respectively. The Corporations (Administrative Actions) Act 2001 is applied to APRA/ASIC actions under s 6A(2).
State supervisory bodies: AFIC (the Australian Financial Institutions Commission established under the AFIC Act) and SAOFS (the South Australian Office of Financial Supervision) are the transferring bodies whose powers, staff, assets and liabilities are the subject of the Act (Parts 3 and 4). The Act continues AFIC in existence for limited purposes (s 7(2)), and preserves SAOFS’s funds until its obligations are met (s 21(1)).
Employees and officers: employees of AFIC and SAOFS are directly affected. The Act permits transfer agreements to provide that particular employees become APRA employees (ss 10(1), 18(1)); on transfer, State employment ends immediately (ss 11(4), 19(2)) and no entitlement to payment arises solely because employment ends (ss 11(5), 19(3)). Before transfer, AFIC and SAOFS must give written statements of accrued benefits, remuneration and service length to the person and APRA or the Commonwealth Public Service Commissioner (ss 12, 20).
Building societies, credit unions and friendly societies: entities that immediately before the transfer date were financial institutions under the State Codes are affected as “transferring financial institutions”. Their regulatory status is changed to being companies under the Corporations Law (long title and definitions). Specific substantive effects on members include conversion of withdrawable shares in building societies to deposits (s 32) and distribution entitlements from the Supervision Fund and Credit Unions Contingency Fund (ss 21(5), 22).
Members, depositors and insurers: depositors and members are affected by dormant-account treatment (s 31) and by the conversion of withdrawable shares (s 32). Insurers and claimants linked to deregistered entities are affected by ASIC’s powers to deal with property and insurers (s 33(2)-(4), (8)).
Courts and prosecuting bodies: the State of Queensland and the State of South Australia assume substituted positions in civil proceedings previously involving AFIC or SAOFS (ss 15(2), 23(1)). APRA or ASIC are authorised to continue incomplete offence proceedings commenced by AFIC or SAOFS (ss 16(2), 24(2)).
Registrars, Ministers and obligations for record-keeping: the Registrar-General or other authority required to register transactions must register transfers effected under approved transfer agreements on application and without fee (s 37). ASIC must keep records and accounts for property that vested in ASIC from deregistered entities (s 33(6)).
Third parties with contractual rights or confidences: the Act’s override of contractual or statutory restrictions (s 39(1)-(3)) affects counterparties because the Act declares that actions taken under it do not put receiving or transferring bodies in breach of contract or law (s 39(2)). Section 39(3) deems necessary consents or advices to have been obtained where, apart from the section, they would be required.

In short, the transfer touches State regulators, Commonwealth regulators, employees, mutual financial institutions and their members, as well as registrars and third-party counterparties. The Act’s specific treatment of funds, staff statements and conversion of member rights directly imposes new legal statuses and administrative requirements on these actors.

The Act creates specific duties and codifies rights, mostly transitional or facilitative, which parties must observe to effect the transfer and wind-up steps described. The following are the principal duties and rights created or recognised in the text.

Duties conferred on APRA and ASIC

APRA and ASIC “have the functions and powers conferred or expressed to be conferred on” them by this Act (ss 5(1), 6(1)). Those sections thereby give APRA and ASIC an express statutory role in exercising transferred regulatory functions in South Australia. Section 5(2) and s 6(2) also permit both regulators to do acts in South Australia “in the performance or exercise of any function or power conferred by or under a law of another jurisdiction corresponding to [this Act]”.
APRA and ASIC are conferred the enforcement powers that AFIC or SAOFS had immediately before the transfer date, in relation to acts or omissions under repealed Codes (s 26(1)). Part 5 then specifies which Code provisions continue to apply for pre-transfer conduct and adapts textual references to the Commonwealth bodies (ss 27-29).

Duties of AFIC and SAOFS in winding up and transfers

AFIC is continued in existence but limited to matters relating to transfers of its functions and to preparing reports and financial statements (s 7(2)). AFIC’s board may delegate powers to appropriately qualified employees (s 8).
SAOFS retains particular financial obligations: it must pay from the Supervision Fund to APRA or ASIC amounts determined by SAOFS that relate to employee leave entitlements that become liabilities of the receiving Commonwealth bodies, and other liabilities that by reason of the Act become those bodies’ liabilities (s 21(2)). SAOFS must also pay expenses incurred before the transfer date (s 21(3)), must continue to receive amounts that would otherwise be payable into the Supervision Fund (s 21(4)), and must distribute any remaining balance fairly to transferring institutions in proportions as the Minister determines (s 21(5)).

Employee-related duties and rights

AFIC and SAOFS must provide written statements to employees before transfer, setting out particulars of accrued entitlements, remuneration and length of service, and provide copies to APRA or the Commissioner (ss 12, 20). These are pre-transfer information duties.
If an employee becomes an APRA employee under the transfer agreement, State employment ends immediately and the person is not entitled to any payment or other benefit merely because employment ends under that section (ss 11(3)-(5); cf s 19(2)-(3) for SAOFS employees). This creates a right to transition to a Commonwealth position where provided in the transfer agreement and a corresponding loss of State employment status without an automatic severance right under these sections.

Rights to disclosure and use of information

Persons who were directors, employees or appointees under AFIC, or members or employees under SAOFS, are explicitly authorised to disclose to APRA or ASIC information they acquired under State fiscal bodies legislation (ss 13(2), 25(2)). The statute states those disclosures are permitted “despite” specified secrecy sections in the State Codes (ss 13(3), 25(3)). This creates a right to transfer supervisory information to the relevant Commonwealth body.

Procedural rights in proceedings

For civil proceedings commenced before the transfer date to which AFIC or SAOFS were parties, the Act substitutes the State as the party (ss 15(2), 23(1)), preserving procedural rights in progress. For incomplete criminal proceedings commenced under specified Code provisions, the Act permits APRA or ASIC to continue prosecutions and to be substituted for AFIC or SAOFS (ss 16(2), 24(2)). That creates procedural continuity rights for both prosecutors and defendants.

Registration and tax treatment

Registrars are obliged to register or record transfers effected by transfer agreements on application without fee (s 37(1)-(2)). Section 38(1) creates an exemption from State stamp duty or other duty or tax in respect of anything effected under a transfer agreement given effect by the Act. Section 38(2) declares no duty-assessment obligations arise in respect of statements or returns relating to such vesting. Together these provisions produce rights to registration without cost and protection from State duties.

Overriding effect and assisted consents

Section 39(1) declares the Act has effect despite any contract, deed, undertaking or other instrument. Section 39(2) states nothing effected by or done under the Act places a receiving or transferring body in breach of contract or other law. Section 39(3) deems necessary advice or consent to have been obtained if, apart from the section, that would have been required. Those provisions give legal certainty to parties performing transfers under the Act, and create rights and duties that may override pre-existing private-law rights but protect receiving/transferring bodies from breach claims.

Administrative-law duties

Section 6A applies the Corporations (Administrative Actions) Act 2001 to APRA and ASIC actions taken under this Act (s 6A(2)), thereby subjecting APRA/ASIC actions to Commonwealth administrative-action requirements. However s 6A(3) limits the Act from purportedly imposing duties on APRA or ASIC that would be beyond the State’s legislative power.

In sum, the Act creates duties of performance (entry into transfer agreements, payments from funds, disclosure obligations, provision of statements to staff, registration of transfers), confers rights to receive transferred records and funds, and preserves prosecutorial and civil procedural continuity. Many duties are framed as discrete, procedural, or contingent on transfer agreements and Ministerial decisions, rather than as open-ended obligations.

The Act itself does not create a new set of standalone criminal sanctions; rather, its enforcement architecture protects and transfers existing enforcement powers under the State Codes and creates statutory substitutions and continuations of prosecutions. The statutory structure repeatedly preserves criminal liability and enforcement capacity for pre-transfer conduct and enables APRA/ASIC to assume prosecutorial responsibility.

Continuation of existing enforcement regimes

Section 26(1) expressly confers on APRA and ASIC “the same enforcement powers relating to anything done or omitted to be done under a Code before the transfer date as AFIC or SAOFS had immediately before that date.” The section states that “a Code applies with all necessary changes” for that purpose. The Act defines “enforcement power” to include functions or powers relating to the investigation of an offence, the institution or carrying on of a prosecution of an offence, or matters relating to an investigation or prosecution of an offence (definition in s 4(1)). Thus investigatory and prosecutorial powers under the repealed Codes remain enforceable after substitution by APRA or ASIC.

Specific Code provisions preserved

Part 5 sets out which parts of each Code continue to apply in relation to pre-transfer conduct (ss 27-29). Each of those sections includes an express saving that provisions that create offences are not limited in their application to pre-transfer conduct (see ss 27(2), 28(2), 29(2)). The textual adaptations in ss 27(3), 28(3), 29(3) convert references to State supervisory authorities to references to the “relevant Commonwealth body”, and effect other necessary textual changes to accommodate substitution.

Substitution in ongoing proceedings

For certain offence prosecutions already commenced by AFIC or SAOFS but not completed before the transfer date, APRA or ASIC may continue the prosecution and be substituted for AFIC or SAOFS as the prosecuting party (ss 16(2), 24(2)). Those sections also state the functions and powers necessary for continuation are conferred on APRA and ASIC (ss 16(3), 24(3)). That operatively ensures continuity of criminal process and enforcement.

Administrative law and review

Section 6A subjects APRA or ASIC administrative actions taken pursuant to functions conferred by this Act to the Corporations (Administrative Actions) Act 2001 (s 6A(2)). That brings APRA/ASIC decisions within a Commonwealth administrative-law framework for certain administrative actions. The application of that Act may create rights to merits review, or other review or procedural obligations specified in the Corporations (Administrative Actions) Act as it applies.

Limits and caveats

Section 6A(3) provides a textual limitation: the Act “does not purport to confer any duty on APRA or ASIC to perform a function, or to exercise a power, conferred, or purportedly conferred, by or under this Act if the conferral of the duty would be beyond the legislative power of the Parliament of the State.” That restricts the scope of enforcement duties the State can unilaterally impose on Commonwealth bodies.
The Act’s saving provisions for civil proceedings (ss 15(2) and 23(1)) substitute the State as party in proceedings where AFIC or SAOFS were involved, but explicitly these sections do not apply to proceedings for an offence (ss 15(5), 23(4)). Criminal prosecution continuity is handled separately under ss 16 and 24.

Operational implications

Operationally, the statute places APRA and ASIC in the position to investigate, prosecute and otherwise enforce contraventions that occurred before the transfer date under State Codes. The Act makes textual changes so that existing Code enforcement provisions are exercisable by the relevant Commonwealth body. The Act also confers necessary powers to ensure APRA and ASIC can complete prosecutions or commence enforcement actions that State authorities would otherwise have pursued.

In sum, enforcement under this Act is a function of substituted statutory authority and preserved Code provisions. The Act ensures continuity of investigatory and prosecutorial powers for pre-transfer conduct, supplies procedural substitutions in ongoing matters, and places APRA and ASIC within an administrative-law framework for actions taken under the Act. The Act does not itself create a new catalogue of specific penalties but preserves the existing penalty architecture of the State Codes for the relevant subject matter.

The Act is explicitly designed to interact with Commonwealth legislation, State Codes that it repeals or replaces, and a range of other State and Commonwealth instruments. The text contains multiple cross-references and operates as a transitional instrument bridging State and Commonwealth regulatory regimes.

Interaction with Commonwealth Reform Act and Corporations Law

The Act repeatedly cites and depends on the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 of the Commonwealth (the “Commonwealth Reform Act”). Several transfer agreements are authorised “under Division 2/3 of Part 1 of Schedule 8 of the Commonwealth Reform Act” (see ss 10(1), 14(1), 17(1), 18(1)). The Act’s own “transfer date” is the date specified under s 3(16) of the Commonwealth Reform Act (definition in s 4(1)).
The long title and definitions reference transfer of regulation “as companies under the Corporations Law,” which historically refers to Commonwealth corporate law. Section 6A applies the Corporations (Administrative Actions) Act 2001 to APRA and ASIC actions under this Act (s 6A(2)), explicitly bringing an element of Commonwealth administrative-law governance to regulatory actions taken by APRA and ASIC under State-transitional authority.

Preservation and adaptation of State Codes and their provisions

The Act repeals earlier State enactments (see legislative history at the end) and then preserves specified powers and provisions of the AFIC Code, the Financial Institutions Code and the Friendly Societies Code for enforcement of pre-transfer conduct (Part 5, ss 26-29). Each preservation section gives textual conversions: references to AFIC or the State supervisory authority become references to the relevant Commonwealth body; references to the Minister sometimes are taken as the Minister administering this Act; and particular sections of the Codes are omitted or adapted where inappropriate. The Act thereby retools the State Codes as frozen, adapted rules for retrospective enforcement.

Relationship to existing private law and contractual obligations

Section 39 declares that the Act has effect “despite anything in a contract, deed, undertaking, agreement or other instrument” (s 39(1)). It further states that nothing done under the Act “places a receiving body, a transferring body or another person in breach of contract or confidence or otherwise makes any of them guilty of a civil wrong” (s 39(2)(a)), and that necessary advice or consent “is taken to have been obtained” (s 39(3)). These provisions operate to displace private-law obstacles to transfer agreements and to limit claims based on assignment or disclosure prohibitions.

Interaction with State tax and registration laws

Section 37 requires registrars to register transfers effected by transfer agreements on application and without a fee (s 37(1)-(2)). Section 38 removes State stamp duties or other duty or tax in respect of anything effected by or done under a transfer agreement given effect by this Act (s 38(1)), and negates obligations to lodge statements or returns for the vesting (s 38(2)). These provisions ensure State tax and registration systems do not impede transfers.

Interaction with other State Acts amended by this Act

The legislative-history table shows this Act amended numerous other State Acts (for example, Corporations (South Australia) Act 1990, South Australian Office of Financial Supervision Act 1992, and many others). Those cross-amendments, recorded in the schedule and notes, indicate the Act’s broad touch across the State statute book to harmonise other provisions with the transfer.

Limits from constitutional or legislative competence

Section 6A(3) states the Act “does not purport to confer any duty on APRA or ASIC to perform a function, or to exercise a power, conferred, or purportedly conferred, by or under this Act if the conferral of the duty would be beyond the legislative power of the Parliament of the State.” This textual proviso acknowledges potential limits on what a State can lawfully require Commonwealth bodies to do and conditions the Act’s conferrals on constitutional competence.

Procedural and evidentiary interaction

The Act provides evidentiary and procedural conversion rules for proceedings involving AFIC and SAOFS: evidence admissible for or against the State body is admissible for or against the substituted party (ss 15(4), 23(3)). In criminal matters, APRA or ASIC may be substituted for AFIC/SAOFS to continue prosecutions (ss 16(2), 24(2)). These provisions ensure procedural continuity across the State-to-Commonwealth interface.

In aggregate, the Act is an integrating, transitional instrument. It operates by layering Commonwealth regulatory administration onto State frameworks for a discrete set of mutual financial institutions, while preserving State enforcement capacity for past conduct and tailoring registries, tax rules and private-law interactions to allow transfers without transactional friction. The Act both imports and adapts Commonwealth administrative law for the new regulatory actors and recognises limits on the State’s ability to attach duties to Commonwealth bodies.

The Act’s legislative-history block at the end of the text records the principal enactment and subsequent formal amendments contained in the published table. Key items from that record follow, with the sections affected noted where the Act itself records amendments.

Principal Act and commencement. The Financial Sector Reform (South Australia) Act 1999 (No. 33 of 1999) received assent on 17 June 1999 and the majority of operative provisions commenced on 17 June 1999; many transfer-related provisions commenced on 1 July 1999, “being the date specified under section 3(16) of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 of the Commonwealth as the transfer date for the purposes of that Act” (legislative-history table).
Statutes Amendment (Corporations) Act 2001 (No. 23 of 2001). This Commonwealth-inspired South Australian amendment inserted s 6A into the Act. The editorial table shows s 6A was inserted by 23/2001 s 74, with commencement 15 July 2001 (the date on which the Corporations Act 2001 commenced). That insertion applied the Corporations (Administrative Actions) Act 2001 to APRA/ASIC actions under the State Act (s 6A).
Amendments to s 33: s 33(3) was amended and ss 33(3a) and (3b) were inserted by 23/2001 s 75, commencing on 15 July 2001. Those inserted subsections concern the treatment of money received by ASIC on disposal of property of a deregistered entity, and declarations about applied Corporations legislation matters and the effect of Part 3 of the Corporations (Ancillary Provisions) Act 2001 (see ss 33(3a) and (3b) as printed). Those provisions reflect the integration of State and Commonwealth company-law administration where ASIC receives assets of previously deregistered State entities.
Statute revision entries. Several provisions (ss 2 and 3 and the Schedule) were omitted under the Legislation Revision and Publication Act 2002 as noted in the legislative-history note. The table in the legislative-history shows a number of “Provisions amended” entries and records that the long title was amended under the Legislation Revision and Publication Act 2002.
Repeals effected by the principal Act. The Act repealed the Financial Institutions (Application of Laws) Act 1992 and the Friendly Societies (South Australia) Act 1997 (legislative-history table notes). Those repeals were part of the operative restructuring of State code regimes in favour of Commonwealth regulation for transferring institutions.
Amendments to other Acts noted in the schedule. The Act also amended a large number of State Acts (a list is printed in the legislative-history), including procedural and taxation Acts. The text records these cross-amendments in the “Legislation amended by principal Act” portion.

The Act’s own text documents the insertion of s 6A and the s 33 variations. The legislative-history table records dates and instruments that brought those numeric changes into the statute. For users, the important amendment landmarks are the 2001 insertions that adapted the Act to the Commonwealth Corporations Act 2001 regime and the 2002 editorial revisions under the State’s Legislation Revision and Publication Act.

Note that the legislative-history in the text is an internal record of parliamentary amendments; it does not catalogue any judicial interpretation or later statutory changes beyond those listed. The Act as printed includes the post-2001 amendments, notably s 6A and the s 33 additions.

The statutory text supplied contains no case law or judicial decisions. It does, however, create the procedural and substantive framework that would govern litigation about: substituted parties in civil litigation, continuation of prosecutions and the application of preserved Code offences and investigatory powers after the transfer date. The Act does not list or refer to any specific litigation; the purchasers and researchers must look to court records or case law databases for subsequent litigation arising under these provisions.

What the Act itself does for litigation risk and procedure

Civil proceedings continuity: For civil proceedings in which AFIC or SAOFS were parties before the transfer date, the Act substitutes the relevant State as party (s 15(2) for AFIC matters, s 23(1) for SAOFS matters), and allows proceedings that could have been brought against AFIC or SAOFS after the transfer date to be brought against the State instead (ss 15(3), 23(2)). Those substitution sections also make evidence admissible for or against the substituted State where it would have been admissible for or against AFIC or SAOFS (ss 15(4), 23(3)). The Act explicitly excludes proceedings for an offence from these substitution sections (ss 15(5), 23(4)), signalling that criminal prosecutions are treated elsewhere.
Criminal prosecutions and continuation: Where AFIC or SAOFS brought offence proceedings under specified Code sections before the transfer date and the proceedings were not completed before that date, the Act permits APRA or ASIC to continue those prosecutions and be substituted in place of the State body or authorised person (ss 16(2), 24(2)). The Act confers the necessary functions and powers on APRA and ASIC to do so (ss 16(3), 24(3)). These provisions were designed to prevent procedural gaps in ongoing prosecutions.
Appeals and administrative relief: The Act withdraws all applications made to the Australian Financial Institutions Appeal Tribunal under a Code that had not been decided by the transfer date (s 36(1)). That extinguishes a tribunal avenue that existed at State level and effectively closes appeal rights pending on the transfer date under those Codes. Given the insertion of s 6A, certain APRA or ASIC administrative actions are subject to the Corporations (Administrative Actions) Act 2001 (s 6A(2)), which creates a Commonwealth administrative-law overlay and potential review paths.

Practical litigation implications implied by statute

Parties to pre-transfer disputes should expect substitution of State parties or continuation by the Commonwealth bodies as provided. Litigation that relied on State supervisory powers may be governed by adapted Code provisions (Part 5) and could involve APRA/ASIC as parties in prosecutions or enforcement actions.
The Act’s deeming provisions (s 39(3)) that take advice or consent to have been obtained may be raised in litigation, for example in contract disputes alleging invalid assignment or unlawful disclosure. The statute’s text states such contraventions do not place receiving/transferring bodies in breach (s 39(2)), but those leaves open factual litigation about whether particular actions were effected “under this Act.”
The Act preserves offences under the Codes and, in ss 27(2), 28(2) and 29(2), states that provisions creating offences are not limited to pre-transfer conduct. That could give rise to prosecutions under Code provisions continuing to apply beyond the transfer date in respect of relevant conduct. APRA and ASIC have the investigatory and prosecutorial powers necessary (s 26(1)).

Because the Act’s text supplies no case law, a practitioner evaluating litigation risks will need to examine post-enactment cases for how courts have treated substitution rules, the continuity of Code offences, the operation of s 39’s overrides, and the administrative-law consequences of s 6A. The Act supplies the procedural mechanics that would be litigated; the outcomes would be found in subsequent jurisprudence, not in the statute itself.

The Act is transition-focused but contains several provisions that create practical traps or operations that can surprise practitioners, institutions or staff unless anticipated and managed. The following “gotchas” are grounded in the statutory text.

No automatic severance or compensation on State employment ending

If an employee of AFIC or SAOFS becomes an APRA employee under the transfer agreement or is appointed to the Commonwealth Public Service, the employee’s State employment “immediately ends” (ss 11(3)-(4), 19(2)). Critically, the Act states a person “is not entitled to receive any payment or other benefit, whether under a contract or otherwise, because the person's appointment or employment ends under this section” (ss 11(5), 19(3)). That negates any automatic entitlement to payment solely because of the termination effected by the transfer. Employers and counsel must therefore examine transfer-agreement terms carefully to see whether the Commonwealth or State offers any transitional payments beyond the statutory minimums.

Deemed conversion of withdrawable shares and cancellation

Building-society members holding withdrawable shares immediately before the transfer date are “taken to have become” holders of deposits with the society equal to the amount paid up on the share (s 32(1)). Those withdrawable shares are taken to have been cancelled (s 32(2)). Although membership continues, the practical and contractual rights associated with shares may be altered materially. Any advice or governance documents that referred to withdrawable-share rights need to be reviewed.

Dormant-account “reverse transfer” effective immediately before the transfer date

Section 31 treats certain amounts transferred to other accounts under s 138A(4)(c) of the Financial Institutions Code as taken immediately before the transfer date to have been transferred back to the depositor’s account as if the account had never been classified dormant. That means institutions must reconstitute deposit accounts and the balances as of the transfer date; operational and ledger reconciliation work will be required.

Secrecy overrides and information migration

Persons who were formerly under statutory secrecy in the AFIC and Financial Institutions Codes are expressly permitted to disclose to APRA or ASIC the information they acquired under the fiscal bodies legislation (s 13(2)) and likewise for SAOFS persons (s 25(2)), “despite” certain Code secrecy sections (ss 13(3), 25(3)). Where institutions previously relied on statutory privacy or contractual confidentiality, the Act displaces that constraint for disclosures to the Commonwealth bodies. Parties relying on commercial confidentiality must reassess whether their prior protections survive.

Discretion retained over Supervision Fund distributions

SAOFS is to pay specified liabilities from the Supervision Fund but is given the power to determine the amounts payable to APRA or ASIC in respect of liabilities relating to employees’ leave or other entitlements and other liabilities “as is determined by SAOFS” (s 21(2)). The Act leaves quantification to SAOFS, and the remaining surplus is to be distributed “in such proportions as the Minister considers fair” (s 21(5)). Those open-ended determinations can generate administrative discretion risks and contestation unless the Minister or SAOFS sets transparent criteria.

Withdrawn tribunal applications

All applications to the Australian Financial Institutions Appeal Tribunal under a Code that had not been decided are taken to have been withdrawn on the transfer date (s 36(1)). Affected parties might lose appeal avenues and should check for alternative review or appeal mechanisms under Commonwealth law or administrative-review provisions (cf s 6A applying the Corporations (Administrative Actions) Act 2001).

Substitution of State in civil proceedings may change litigation posture

For proceedings commenced before the transfer date to which AFIC or SAOFS were parties, the State is substituted as party (ss 15(2), 23(1)). That can alter litigation strategy because a State party may have different resources, indemnity positions or settlement policies than the former agency did.

Enforcement powers preserved and offences not limited

Although the preserved Code provisions are adapted to refer to Commonwealth bodies, ss 27(2), 28(2), 29(2) state that offending provisions are not limited to pre-transfer conduct. Prosecutorial exposure might therefore persist after the transfer date for conduct governed by preserved provisions, and APRA/ASIC have those enforcement powers per s 26(1). Entities should review their pre-transfer conduct for ongoing enforcement risk.

Registrations and exemptions are one-directional

The Act requires registration or record of transfers and bars fees (s 37), and exempts relevant transfers from State taxes (s 38). Parties should ensure they follow the application process because failure to apply may leave the transfer unrecorded despite the exemption; the Act does not itself perform registration for them.

Limits on what the State can confer on Commonwealth bodies

Section 6A(3) explicitly states the Act does not purport to confer on APRA or ASIC any duty if that conferral would be beyond the State’s legislative power. Legal advice is required where a transfer agreement attempts to bind a Commonwealth body to post-transfer duties beyond what the State can impose.

These are statutory “gotchas” to be managed through transfer agreement drafting, employee communications and reconciliations, fund-accounting processes and litigation risk assessments. Each arises directly from the text and is capable of producing operational consequences absent proactive steps.

Compliance under this Act is primarily operational and procedural: institutions, State bodies and Commonwealth recipients must each take specified steps to make transfers, preserve records and implement accountably. Below are specific compliance actions grounded in statutory text and ordered by actor.

For AFIC and SAOFS (transferring State bodies)

Enter transfer agreements as authorised by the Commonwealth Reform Act: AFIC (s 10(1)) and SAOFS (s 18(1)) may have transfer agreements determining that particular employees become APRA employees on a particular date; AFIC and SAOFS may also enter transfer agreements for assets and liabilities (ss 14(1), 17(1)). Ensure agreements are consistent with Division 2/3 of Part 1 of Schedule 8 of the Commonwealth Reform Act (as the Act contemplates).
Provide employee statements: Before an employee becomes an APRA employee or is appointed to the Australian Public Service, AFIC and SAOFS must give the person and APRA or the Commonwealth Public Service Commissioner a written statement containing particulars of accrued benefits, remuneration and length of service (ss 12, 20). That is a statutory pre-transfer compliance obligation.
Arrange Supervision Fund payments and distributions: SAOFS must pay amounts from the Supervision Fund to APRA or ASIC in respect of liabilities determined by SAOFS (s 21(2)), pay expenses incurred before the transfer date (s 21(3)), receive amounts that would have been payable into the Fund (s 21(4)), and distribute any remaining balance to transferring institutions in proportions the Minister considers fair (s 21(5)). SAOFS must thus identify liabilities, determine amounts, keep records of payments and obtain Ministerial direction as necessary.
Distribute Credit Unions Contingency Fund balances: On the day before the transfer date SAOFS must distribute the whole of retained earnings to credit-union contribution accounts (s 22(1)), then immediately pay from the Fund to each credit union the amount credited (s 22(3)). Compliance requires ledger accuracy and timing coordination with the transfer date.
Preserve and transfer records: Keep records of assets to be transferred and provide those to APRA/ASIC or to the Registrar as needed; the Act requires AFIC/SAOFS to provide statements and allows disclosure of information to Commonwealth bodies (ss 13(2), 25(2)).

For APRA and ASIC (receiving Commonwealth bodies)

Accept substituted powers and adapt enforcement practice: APRA and ASIC have enforcement powers relating to pre-transfer Code conduct equivalent to those previously held by AFIC or SAOFS (s 26(1)). APRA/ASIC should map preserved Code provisions (ss 27-29) into their enforcement processes, noting textual conversions of references to Commonwealth bodies and Ministers.
Continue or substitute in proceedings as authorised: For incomplete prosecutions commenced by AFIC or SAOFS before the transfer date, APRA or ASIC may continue those prosecutions and be substituted (ss 16(2), 24(2)). APRA and ASIC should establish internal processes for accepting substitution and for notifying relevant parties and courts.
Observe administrative-law obligations: Administrative actions taken under conferrals in this Act are subject to the Corporations (Administrative Actions) Act 2001 as applied by s 6A(2). APRA/ASIC must ensure decisions and administrative processes comply with that statute.

For transferring financial institutions (building societies, credit unions, friendly societies)

Convert share and account structures: Building-society withdrawable shares become deposits equal to the paid amount on the transfer date and the shares are cancelled (s 32(1)-(2)); members remain members but become governed by society rules (s 32(3)). Dormant accounts transferred under s 138A(4)(c) of the Financial Institutions Code are to be taken to have been transferred back into deposit accounts immediately before the transfer date (s 31). Institutions should reconcile ledgers to show conversion and make member communications explaining deposit status.
Coordinate with registrars and ASIC: Where property or assets of deregistered financial bodies vest in ASIC (s 33), ASIC has powers to act as trustee or to apply to a court for appointment of a new trustee; ASIC may also dispose of property and apply proceeds under Part 9.7 of the Corporations Act as applied (s 33(3)). Institutions must cooperate with ASIC in records transfer to ensure rights holders can be identified.
Ensure regulatory compliance under Commonwealth law post-transfer: Entities becoming companies under the Corporations Law must prepare for corporate-law compliance and APRA prudential supervision. That includes understanding the scope of preserved Code obligations and the new regulatory point of contact.

For registrars and recording authorities

Accept applications to register transfers effected by transfer agreements, register or record in an appropriate manner, and charge no fee for the application (s 37(1)-(2)). Process documentation should be tailored to evidence required by s 37(1).

For Ministers and State authorities

Exercise discretion on fund disposition: The Minister is to consider fairness in distribution of remaining Supervision Fund balances (s 21(5)). Ministers must document reasoning for fairness determinations and ensure distributions comply with statutory priorities.

For staff and individuals

Review pre-transfer statements and employment status: Staff must obtain and retain the written statement of accrued entitlements required by ss 12 and 20 and ascertain whether they are designated in transfer agreements to become APRA employees. They must note the statutory position that no payment arises solely because employment ends (ss 11(5), 19(3)).

General compliance and record-keeping

Ensure that any necessary advice or consent that would otherwise be required is obtained or documented, though s 39(3) deems advice or consent to have been obtained in some circumstances. Best practice is to document the administrative steps taken to effect transfers and any consents relied upon.
Review confidentiality protocols: Given ss 13(2) and 25(2) allow disclosure to Commonwealth bodies “despite” secrecy clauses, entities should map information flows to meet both legal authorisations and operational privacy expectations.
Legal review of transfer agreements and preserved Code obligations: Parties should have transfer agreements and the text of preserved Code provisions reviewed to determine continuing obligations, enforcement risks and the mapping of old Code references to the Commonwealth bodies (cf ss 27(3), 28(3), 29(3)).

Following these steps, and recording the statutory basis for each action (citing the specific sections identified above), will align the practical process with the Act’s mandatory mechanics and time points.

Financial Sector Reform (South Australia) Act 1999

Plain English Summary

Deep Dive

What it does

Current sections

Financial Sector Reform (South Australia) Act 1999

Source text: opening excerpt

1 Financial Sector Reform (South Australia) Act 1999

Main concepts

Who it affects

Key duties and rights

Penalties and enforcement

How it interacts with other laws

Amendment history

Litigation history

Gotchas

How to comply