Part 1 Preliminary

1 Short title

This Act may be cited as the Financial Sector Reform (Tasmania) Act 1999 .

2 Commencement

(1)  Part 1 , Subdivisions 4 , 5 and 6 of Division 3 of Part 5 and sections 25 , 49 , 52 , 53 , 54 and 55 commence on the day on which this Act receives the Royal Assent.

(2)  The remaining provisions of this Act commence on the transfer date.

3 Interpretation

In this Act, unless the contrary intention appears –

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 the Code set out in section 21 of the AFIC Act;

AFIC (Tasmania) Code means the provisions applying as a law of Tasmania before the transfer date because of section 5 of the Financial Institutions (Application of Laws) Act 1992 , and includes the AFIC (Tasmania) Regulations applying as regulations before the transfer date because of section 6 of that Act;

appropriately qualified, in relation to the delegation of a power, includes having the qualifications, experience or standing to exercise the power;

APRA means the Australian Prudential Regulation Authority established by the APRA Act;

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 established by the Australian Securities and Investments Commission Act 1989 of the Commonwealth;

authorised APRA officer in a provision of Part 4 , means a person authorised under section 9 to perform or exercise the functions or powers of an authorised APRA officer under the provision;

Credit Unions Contingency Fund means the fund of that name established under section 97(1) of the Financial Institutions (Tasmania) Code;

employee, of TOFS, includes a person engaged by TOFS 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 means the Code set out in section 30 of the Financial Institutions (Queensland) Act 1992 of Queensland;

financial institutions legislation see section 8 of the AFIC Code;

Financial Institutions (Tasmania) Code means the provisions applying as a law of Tasmania before the transfer date because of section 8 of the Financial Institutions (Application of Laws) Act 1992 , and includes the Financial Institutions (Tasmania) Regulations applying as regulations before the transfer date because of section 9 of that Act;

fiscal bodies legislation see section 3 of the AFIC Code;

Friendly Societies Code means the Code set out in Schedule 1 to the Friendly Societies (Victoria) Act 1996 of Victoria;

Friendly Societies (Tasmania) Code means the provisions applying as a law of Tasmania before the transfer date because of section 5 of the Friendly Societies (Tasmania) Act 1997 and includes the Friendly Societies (Tasmania) Regulations applying as regulations because of section 6 of that Act;

Friendly Societies (Tasmania) Regulations means the provisions applying as regulations because of section 6 of the Financial Institutions (Application of Laws) Act 1992 ;

FSR Act means the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 of the Commonwealth;

FS(TB) Act means the Financial Sector (Transfers of Business) Act 1999 of the Commonwealth;

relevant Commonwealth body means APRA or ASIC;

SSA means State supervisory authority;

Supervision Fund means the fund of that name established under section 94(1) of the Financial Institutions (Tasmania) Code;

TOFS means the Tasmanian Office of Financial Supervision;

TOFS Act means the Tasmanian Office of Financial Supervision Act 1992 ;

transfer date means the date that, under section 3 (16) of the FSR Act, is specified as the transfer date for the purposes of that Act.

4 Act binds Crown

(1)  This Act binds the Crown in right of Tasmania and, in so far as the legislative power of Parliament permits, in all its other capacities.

(2)  Nothing in this section permits the Crown in any of its capacities to be prosecuted for an offence.

Part 2 Registration of certain entities as companies

5 Transferring financial institutions

(1)  On the transfer date, each transferring financial institution of this jurisdiction is taken, in accordance with Schedule 4 of the Corporations Law of Tasmania, to become registered as a company under that law under the name under which the institution was registered under the previous governing Code immediately before the transfer date.

(2)  Subsection (1) applies even if the institution is an externally administered body corporate immediately before the transfer date.

(3)  Registration under the Corporations Law of Tasmania of a transferring financial institution of this jurisdiction as a company does not create a new legal entity.

(4)  In this section –

previous governing Code has the same meaning as in Schedule 4 of the Corporations Law;

transferring financial institution of this jurisdiction has the same meaning as in Schedule 4 of the Corporations Law.

Part 3 Conferral of functions and powers on APRA and ASIC

6 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 Tasmania in the performance or exercise of a function or power conferred or expressed to be conferred on APRA by or under a law of another jurisdiction corresponding to this Act.

(3)  [Section 6 Subsection (3) inserted by No. 42 of 2001, Sched. 1, Applied:15 Jul 2001] Without limiting the operation of section 3 of the Acts Interpretation Act 1931 , this section does not purport to impose a duty on APRA to perform any functions or exercise any powers conferred or expressed to be conferred on it by or under this Act if the imposition of the duty would be beyond the legislative power of the Parliament of the State.

7 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 Tasmania in the performance or exercise of a function or power conferred or expressed to be conferred on ASIC by or under a law of another jurisdiction corresponding to this Act.

(3)  [Section 7 Subsection (3) inserted by No. 42 of 2001, Sched. 1, Applied:15 Jul 2001] Without limiting section 3 of the Acts Interpretation Act 1931 , this section does not purport to impose a duty on ASIC to perform any functions or exercise any powers conferred or expressed to be conferred on it by or under this Act if the imposition of the duty would be beyond the legislative power of the Parliament of the State.

Part 4 Authorised deposit-taking institutions and life insurance companies: transfer of business

8 Words defined in FS(TB) Act

Unless the contrary intention appears, words defined in the FS(TB) Act have the same respective meanings in this Part.

9 Authorised APRA officer

(1)  APRA may, in writing, authorise a person who is an APRA Board member, or an APRA staff member, to perform or exercise the functions or powers of an authorised APRA officer under a particular provision of this Part.

(2)  The functions and powers necessary for the purposes of this section are conferred on APRA.

10 Voluntary transfers

(1)  The purpose of this section is to facilitate voluntary transfers of business under Part 3 of the FS(TB) Act for regulated bodies.

(2)  This section applies when a certificate of transfer issued under section 18 of the FS(TB) Act comes into force under Division 3 of Part 3 of that Act.

(3)  The receiving body is taken to be the successor in law of the transferring body, to the extent of the transfer.

(4)  In particular –

(a) if the transfer is a total transfer, all the assets and liabilities of the transferring body become respectively the assets and liabilities of the receiving body without any transfer, conveyance or assignment; and

(b) if the transfer is a partial transfer, all the assets and liabilities of the transferring body included in the list of assets and liabilities specified in the statement of detail become respectively assets and liabilities of the receiving body without any transfer, conveyance or assignment; and

(c) to the extent of the transfer, the duties, obligations, immunities, rights and privileges applying to the transferring body apply to the receiving body.

(5)  If there is an approved statement under section 20 of the FS(TB) Act in relation to the transfer specifying –

(a) that particular things are to happen or are taken to be the case, those things are taken to happen, or to be the case, in accordance with the statement; or

(b) a mechanism for deciding things that are to happen or are taken to be the case, things decided in accordance with that mechanism are taken to happen, or to be the case, as decided in accordance with that mechanism.

11 Compulsory transfers

(1)  The purpose of this section is to facilitate compulsory transfers of business under Part 4 of the FS(TB) Act for regulated bodies.

(2)  This section applies when a certificate of transfer issued under section 33 of the FS(TB) Act comes into force under Division 3 of Part 4 of that Act.

(3)  The receiving body is taken to be the successor in law of the transferring body, to the extent of the transfer.

(4)  In particular –

(a) if the transfer is a total transfer, all the assets and liabilities of the transferring body become respectively the assets and liabilities of the receiving body without any transfer, conveyance or assignment; and

(b) if the transfer is a partial transfer, all the assets and liabilities of the transferring body that are included in the list, referred to in section 33(2)(c) of the FS(TB) Act, included in, or attached to, the certificate of transfer become respectively assets and liabilities of the receiving body without any transfer, conveyance or assignment; and

(c) to the extent of the transfer, the duties, obligations, immunities, rights and privileges applying to the transferring body apply to the receiving body.

(5)  If the certificate of transfer includes provisions of a kind referred to in section 33(3) of the FS(TB) Act specifying –

(a) that particular things are to happen or are taken to be the case, those things are taken to happen, or to be the case, in accordance with those provisions; or

(b) a mechanism for deciding things that are to happen or are taken to be the case, things decided in accordance with that mechanism are taken to happen, or to be the case, as decided in accordance with that mechanism.

(6)  If there is an approved statement under section 30 of the FS(TB) Act in relation to the transfer specifying –

(a) that particular things are to happen or are taken to be the case, those things are taken to happen, or to be the case, in accordance with the statement; or

(b) a mechanism for deciding things that are to happen or are taken to be the case, things decided in accordance with that mechanism are taken to happen, or to be the case, as decided in accordance with that mechanism.

12 Certificate evidencing operation of Part 4

(1)  An authorised APRA officer may, by a certificate in writing signed by the officer, certify anything relating to the effect of this Part, and, in particular, may certify that –

(a) a particular asset of a transferring body has become a transferred asset of a receiving body; or

(b) a particular liability of a transferring body has become a transferred liability of a receiving body.

(2)  For all purposes and in all proceedings, a certificate under subsection (1) is evidence of the matters certified.

13 Certificates relating to land and interest in land

(1)  This section applies if –

(a) a receiving body becomes, under this Part, the owner of land, or an interest in land, situated in the State; and

(b) there is lodged with the Recorder of Titles a certificate that –

(i) is signed by an authorised APRA officer; and

(ii) identifies the land or interest; and

(iii) states that the receiving body has, under this Part, become the owner of that land or interest.

(2)  The Recorder of Titles may –

(a) register or record the matter in the same way as dealings in land or interests in land of that kind are registered or recorded; and

(b) deal with, and give effect to, the certificate.

14 Certificates relating to other assets

(1)  This section applies if –

(a) an asset, other than land or an interest in land, becomes, under this Part, an asset of a receiving body; and

(b) there is lodged with the entity that has, under the law, responsibility for keeping a register or record relating to assets of that kind a certificate that –

(i) is signed by an authorised APRA officer; and

(ii) identifies the asset; and

(iii) states that the asset has, under this Part, become an asset of the receiving body.

(2)  The entity may –

(a) register or record the matter in the same way as transactions relating to assets of that kind are registered or recorded; and

(b) deal with, and give effect to, the certificate.

(3)  This section does not affect the operations of the Corporations Law.

15 Documents purporting to be certificates

A document purporting to be a certificate mentioned in section 13 or 14 is taken to be a certificate of that type unless the contrary intention is established.

16 Relationship of Part 4 with other laws

(1)  This Part has effect despite anything in a contract, deed, undertaking, agreement or other instrument.

(2)  Nothing done under this Part –

(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 for a particular purpose, the advice is taken to have been obtained or the consent is taken to have been given.

Part 5 Transitional

Division 1 Continuation of AFIC

17 AFIC continues to have certain powers

(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 (Application of Laws) Act 1992 and Friendly Societies (Tasmania) Act 1997 .

(2)  While AFIC continues in existence under the Financial Sector Reform (Queensland) Act 1999 of Queensland it has power to do –

(a) any act in or in respect of Tasmania that it considers necessary or expedient to do for the purposes for which it continues in existence; and

(b) any act in respect of a society that it considers necessary or expedient to do for the purposes for which it continues in existence; and

(c) any other act that it is authorised to do by this Act.

(3)  The Board of AFIC may delegate AFIC's powers under subsection (2) to an appropriately qualified employee of AFIC.

(4)  In this section,

society means an entity that, immediately before the transfer date, was a society under the Financial Institutions (Tasmania) Code or Friendly Societies (Tasmania) Code.

Division 2 Proceedings involving AFIC

18 Continuation and preservation of certain civil proceedings

(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 started before the transfer date to which AFIC was a party immediately before that date, the State of Queensland may be substituted for AFIC as a party to the proceeding.

(3)  For the purposes of a proceeding not started before the transfer date and which could if started after that date be brought against AFIC, or but for the commencement of section 56 and the dissolution of AFIC could have 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.

19 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 started 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.

Division 3 Provisions relating to TOFS

Subdivision 1 TOFS to continue

20 Continuation of TOFS for certain purposes

(1)  This section applies despite the repeal of the TOFS Act.

(2)  TOFS and its Board continue in existence, but only for the following purposes:

(a) to give effect to anything relating to the transfer, under a law of the Commonwealth or this Act, of any of its functions as an SSA under the fiscal bodies legislation to APRA or ASIC;

(b) to prepare its final report and financial statements under the Financial Management and Audit Act 1990 ;

(c) to do other things under this Division;

(d) winding-up itself as soon as practicable but, in any case, within 12 months after the transfer date;

(e) to exercise and perform its powers and functions under the Co-operative Housing Societies Act 1963 , and to enable the chief executive officer of TOFS to exercise and perform powers and functions as Registrar under that Act;

(f) prescribed purposes.

(3)  Without limiting subsection (2)(a) , TOFS must comply with clause 4 of Schedule 4 of the Corporations Law.

(4)  TOFS has the powers necessary or desirable for it to act under subsection (2) or (3) including the power to –

(a) employ staff; and

(b) execute a contract, deed or other document necessary for its winding-up.

(5)  Also, to the extent it is necessary or desirable to allow TOFS to act under subsection (2) and for its financial statements to be audited, the provisions of the fiscal bodies legislation and the TOFS Act continue to apply despite the repeal of all or any of the legislation or of the Act.

(6)  In this section,

winding-up includes TOFS realising its assets and discharging its liabilities.

21 Contracts and agreements with TOFS continue

The repeal of the TOFS Act does not of itself terminate a contract or other agreement between TOFS and another person.

22 Delegation of TOFS powers

(1)  The Board of TOFS may delegate TOFS' powers to an appropriately qualified employee of TOFS.

(2)  In this section,

employee, of TOFS, includes the chief executive officer of TOFS.

Subdivision 2 Provisions relating to certain funds

23 Continuation and abolition of Supervision Fund

(1)  The Supervision Fund continues in existence despite the repeals effected by section 56.

(2)  However, when the distribution mentioned in section 24(3)(b) has been made the Supervision Fund is abolished.

24 Supervision Fund

(1)  TOFS may pay out of the Supervision Fund –

(a) to APRA –

(i) such amounts for liabilities relating to leave and other entitlements of employees of TOFS who become APRA employees under section 30 , being liabilities existing immediately before the transfer date, as is agreed by TOFS and APRA; and

(ii) such amounts for other liabilities of TOFS that become liabilities of APRA by reason of this Act, as is agreed by TOFS and APRA; and

(b) to ASIC –

(i) such amounts for liabilities relating to leave and other entitlements of employees of TOFS mentioned in section 31(1) , being liabilities existing immediately before the transfer date, as is agreed by TOFS and ASIC; and

(ii) such amounts for other liabilities of TOFS that become liabilities of ASIC by reason of this Act as is agreed by TOFS and ASIC.

(2)  Also TOFS may pay into or out of the Supervision Fund amounts for performing its functions and exercising its powers under this Division.

(3)  Immediately before TOFS is dissolved, it is to –

(a) determine the amount that is left standing to the credit of the Supervision Fund; and

(b) distribute that amount to the financial bodies that contributed to the Supervision Fund in the same proportion as their contributions.

(4)  This section applies despite sections 94(2) and (3) of the Financial Institutions (Tasmania) Code.

(5)  In this section,

employees, of TOFS, includes the chief executive officer of TOFS.

25 Credit Unions Contingency Fund

(1)  On the day immediately before the transfer date TOFS must, under section 99A of the Financial Institutions (Tasmania) 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 (Tasmania) Code does not apply.

(3)  Immediately after TOFS 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 (Tasmania) Code.

(5)  On TOFS complying with subsection (3) , the Credit Unions Contingency Fund is abolished.

(6)  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 (Tasmania) Code are treated as a deferred asset in the accounts of the credit unions;

credit union means a credit union under the Financial Institutions (Tasmania) Code;

retained earnings has the same meaning as in section 99A of the Financial Institutions (Tasmania) Code.

26 Financial statements for Credit Unions Contingency Fund

(1)  As soon as practicable after the transfer date, TOFS must prepare financial statements for the Credit Unions Contingency Fund.

(2)  The financial statements must be audited by the Auditor-General.

(3)  For the purposes of the audit, the Financial Management and Audit Act 1990 applies as though the financial statements formed part of the financial statements of TOFS.

27 Auditor-General to report on funds

[Section 27 Amended by No. 50 of 2008, Sched. 1, Applied:01 Mar 2009] On completion of the audit of the final financial statements of TOFS, including the financial statements for the Credit Unions Contingency Fund, under the Audit Act 2008 , the Auditor-General must give the Minister a written report about whether the Supervision Fund and the Credit Unions Contingency Fund were applied for the purposes for which they were established and under sections 24 and 25 .

Subdivision 3 Dissolution of TOFS

28 Dissolution of TOFS

TOFS is dissolved, and the directors of the Board of TOFS cease to hold office, on the earlier of the following:

(a) 12 months after the transfer date;

(b) a day determined by the Minister by notice published in the Gazette.

29 Directors' superannuation

(1)  A benefit that is payable to a person who ceases to be a director of TOFS consequent on section 28 is to be calculated in accordance with –

(a) regulation 54 of the Retirement Benefits Regulations 1994 if the person has attained the age of 55 years before the termination day; or

(b) regulation 55 of the Retirement Benefits Regulations 1994 if the person has not attained the age of 55 years before the termination day.

(2)  TOFS must, immediately before the termination day, pay to the Public Account an amount equal to –

(a) the aggregate of the benefit entitlements of the persons who cease to be directors of TOFS on that day, calculated in accordance with subsection (1) ; and

(b) the aggregate of the benefit entitlements that immediately before the termination day are payable to former directors of TOFS and which have been preserved in the compulsory preservation account established under regulation 63 of the Retirement Benefits Regulations 1994 .

(3)  In this section –

former director means a person who has at any time been a director of TOFS but who was not a director of TOFS immediately before the termination day;

termination day means the day on which TOFS is dissolved and the directors of the Board of TOFS cease to hold office as provided by section 28 .

Subdivision 4 Provisions relating to TOFS staff

30 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 to the FSR Act that determines or provides that particular employees of TOFS 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.

31 Effect of transfer of TOFS employees, &c.

(1)  This section applies if a person –

(a) becomes an APRA employee under section 30 ; or

(b) 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 was, immediately before the appointment, an employee of TOFS.

(2)  If the person is the chief executive officer of TOFS, the person's appointment or employment with TOFS ends immediately.

(3)  If the person is another employee of TOFS, the employee's appointment or employment under the TOFS Act ends immediately.

(4)  A person is not entitled to receive from TOFS any payment or other benefit, whether under a contract or otherwise, because the person's appointment or employment ends under this section.

32 Statement of accrued benefits, &c.

Before an employee of TOFS becomes an APRA employee under section 30 or is appointed to the Australian Public Service as mentioned in section 31(1)(b) , TOFS must give the person, and APRA or the Commonwealth Public Service Commissioner, a written statement setting out particulars of the benefits to which the person has an accrued entitlement, the person's remuneration and the person's length of service with TOFS.

Subdivision 5 Information may be given to APRA or ASIC

33 Giving of information

(1)  This section applies to –

(a) a director of the Board of TOFS; and

(b) an employee of TOFS, including its chief executive officer; and

(c) a person appointed by TOFS 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 410 of the Financial Institutions Code or section 477 of the Friendly Societies Code.

Subdivision 6 Transfer of TOFS assets and liabilities

34 Transfer of assets and liabilities

(1)  The Minister may enter into a transfer agreement under Division 3 of Part 1 of Schedule 8 to the FSR Act connected with the transfer of assets or liabilities of TOFS to APRA or ASIC.

(2)  The transfer agreement has effect according to its terms.

Subdivision 7 Proceedings involving TOFS

35 Continuation and preservation of civil proceedings involving TOFS

(1)  For the purposes of a proceeding started before the transfer date to which TOFS was a party immediately before that date, the State is substituted for TOFS as a party to the proceeding.

(2)  For the purposes of a proceeding not started before the transfer date and which could if started after that date be brought against TOFS, or but for the commencement of section 56 and the dissolution of TOFS could have been brought against TOFS, 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 TOFS is admissible for or against the State.

(4)  This section does not apply to a proceeding for an offence.

36 Continuation of certain offence proceedings

(1)  This section applies to a proceeding for an offence brought under section 404 of the Financial Institutions (Tasmania) Code or section 471 of the Friendly Societies (Tasmania) Code by TOFS, or a person authorised in writing by TOFS, that started 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 TOFS or the person authorised by TOFS, and APRA or ASIC may be substituted in the proceeding for TOFS or the person.

(3)  The functions and powers necessary for this section are conferred on APRA and ASIC.

Division 4 APRA's and ASIC's functions and powers under Codes

37 Conferral of functions and powers relating to financial institutions and friendly societies

(1)  Either relevant Commonwealth body has the same enforcement powers relating to anything done or omitted to be done under a Code before the transfer date as AFIC or TOFS 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 the AFIC (Tasmania) Code, Financial Institutions (Tasmania) Code or Friendly Societies (Tasmania) Code.

38 AFIC Code provisions

(1)  The following provisions of the AFIC Code continue to apply on and after the transfer date in relation to anything done or omitted to be done before that date as if section 56 had not commenced:

(a) Part 8, other than sections 50, 51, 55 and 58;

(b) the other provisions of the Code relevant to the Part.

(2)  Despite subsection (1) , a provision, or part of a provision, applying under the 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 the application mentioned in subsection (1)  –

(a) a reference in the Code to AFIC is taken to be a reference to either 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 was, immediately before that date, 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 either 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 either 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 either relevant Commonwealth body; and

(h) sections 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 37 .

39 Financial Institutions Code provisions

(1)  The following provisions of the Financial Institutions Code continue to apply on and after the transfer date in relation to anything done or omitted to be done before that date as if section 56 had not commenced:

(a) Subdivision 1A of Division 2 of Part 2, other than sections 75, 79 and 82;

(b) Part 10;

(c) sections 392, 397, 398 and 404;

(d) the other provisions of the Code relevant to the provisions mentioned in paragraphs (a) , (b) and (c) .

(2)  Despite subsection (1) , a provision, or part of a provision, applying under the 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 the application mentioned in subsection (1)  –

(a) a reference in the Code to the SSA is taken to be a reference to either 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 was, immediately before that date, a financial body under the Code; and

(c) 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 was, immediately before that date, 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 either relevant Commonwealth body; and

(f) section 76(5) of the Code is taken to be omitted; and

(g) in the definition "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 "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 "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 37 .

40 Provisions for Financial Institutions Code as applied under section 40 of AFIC Code

(1)  The following provisions continue to apply on and after the transfer date in relation to anything done or omitted to be done before the date as if section 56 had not commenced:

(a) section 40 of the AFIC Code to the extent that it applies the relevant provisions;

(b) the relevant provisions as applied under section 40 of the AFIC Code;

(c) the other provisions of the AFIC Code and Financial Institutions Code relevant to section 40 of the AFIC Code and the relevant provisions.

(2)  Despite subsection (1) , a provision, or part of a provision, applying under the 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 the application mentioned in subsection (1)  –

(a) a reference in section 40 of the AFIC Code or in regulation 5 of the AFIC Regulations to a special services provider is taken to be a reference to an entity that on the transfer date is a company under the Corporations Law and was, immediately before that date, a special services provider under the Code; and

(b) a reference in section 40 of the AFIC Code or in regulation 5 of the AFIC Regulations is taken to be a reference to either relevant Commonwealth body; and

(c) in section 76(1) of the Financial Institutions 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

(d) section 76(5) of the Financial Institutions Code is taken to be omitted; and

(e) in the definition "financial body to which this section applies" in section 397(1) of the Financial Institutions Code, paragraphs (a), (b), (d), (e) and (f) are taken to be omitted; and

(f) section 397(2) of the Financial Institutions Code is taken to be omitted; and

(g) in the definition "financial body to which this section applies" in section 398(1) of the Financial Institutions Code, paragraphs (a), (b), (d), (e) and (f) are taken to be omitted; and

(h) in the definition "prescribed person" in section 398(1) of the Financial Institutions Code, paragraphs (a) and (b) are taken to be omitted; and

(i) section 398(2) of the Financial Institutions Code is taken to be omitted; and

(j) a reference in section 404(2) of the Financial Institutions Code to the Minister is taken to be a reference to the Minister administering this Act; and

(k) the AFIC Code and the Financial Institutions Code apply with all other necessary changes.

(4)  In this section –

AFIC Regulations means the regulations applying before the transfer date under Part 5 of the AFIC Act;

relevant provisions means –

(a) Subdivision 1A of Division 2 of Part 2 of the Financial Institutions Code, other than sections 75, 79 and 82; and

(b) Part 10 of the Financial Institutions Code; and

(c) sections 392, 397, 398 and 404 of the Financial Institutions Code.

(5)  This section does not limit section 37 .

41 Friendly Societies Code provisions

(1)  The following provisions of the Friendly Societies Code continue to apply on and after the transfer date in relation to anything done or omitted to be done before that date as if section 56 had not commenced:

(a) Subdivision 2 of Division 2 of Part 2 (other than sections 31, 35 and 38);

(b) Divisions 3 and 4 of Part 4A;

(c) Part 10;

(d) sections 460, 465, 466 and 471;

(e) the other provisions of the Code relevant to the provisions mentioned in paragraphs (a) , (b) , (c) and (d) .

(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 the application mentioned in subsection (1)  –

(a) a reference in the Code to the SSA is taken to be a reference to either 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 was, immediately before that date, 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 either relevant Commonwealth body; and

(e) section 32(4) of the Code is taken to be omitted; and

(f) in the definition "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 "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 "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 37 .

42 Conferral of functions and powers

The functions and powers necessary for the purposes of this Division are conferred on APRA and ASIC.

Division 5 Matters relating to deregistered societies

43 Definition for Division 5

In this Division,

society means an entity that, before the transfer date, was –

(a) a society under the Financial Institutions (Tasmania) Code or Friendly Societies (Tasmania) Code; or

(b) a building society under the Building Societies Act 1876; or

(c) a credit union under the Co-operative Industrial Societies Act 1928; or

(d) a friendly society under the Friendly Societies Act 1888.

44 Application of Division 5

This Division applies to a society whose registration has been cancelled, before the transfer date, under –

(a) the Financial Institutions (Tasmania) Code; or

(b) the Friendly Societies (Tasmania) Code.

45 Society property vested in ASIC under section 34

(1)  This section applies to property vested in ASIC under section 34 that was held by a society to which this Division applies.

(2)  If the property was held by the society 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 the property was not held by the society on trust, ASIC –

(a) may dispose of or deal with the property as it sees fit and apply any money it receives to defray expenses incurred by ASIC in exercising its powers in relation to the society and to make payments authorised by subsection (4) ; and

(b) [Section 45 Subsection (3) amended by No. 42 of 2001, Sched. 1, Applied:15 Jul 2001] must deal with the balance of the property remaining after acting under paragraph (a) , if any, under Part 9.7 of the Corporations Act as applying under this section.

(3A)  [Section 45 Subsection (3A) inserted by No. 42 of 2001, Sched. 1, Applied:15 Jul 2001] Money received by ASIC on a disposal of, or dealing with, property of a society under paragraph (a) of subsection (3) that is not applied under that paragraph 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 as if the society had been a company.

(3B)  [Section 45 Subsection (3B) inserted by No. 42 of 2001, Sched. 1, Applied:15 Jul 2001] 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 society'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 that it knows this section applies to; 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 that property and that money.

46 ASIC may act for society

ASIC may do an act on behalf of the society or the society's liquidator if ASIC is satisfied the society or liquidator would be bound to do the act if the society still existed.

47 Recovery from society insurer

A person may recover from an insurer of the society an amount that was payable to the society under the insurance contract if –

(a) the society had a liability to the person; and

(b) the insurance contract covered the liability immediately before the cancellation of the registration.

48 Conferral of functions and powers

The functions and powers necessary for the purposes of this Division are conferred on ASIC.

Division 6 Miscellaneous

49 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 (Tasmania) 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 the other account for the person is taken to have been transferred back to the person's deposit account as if it had never been classified as a dormant account or closed under section 138A of the Financial Institutions (Tasmania) Code.

50 Mergers and transfers of engagements started under Financial Institutions (Tasmania) Code

(1)  This section applies if a transfer of engagements or merger started before the transfer date under Part 7 of the Financial Institutions (Tasmania) 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 (Tasmania) Code on or after the transfer date and, for that purpose, the Part, and other provisions of the Code relevant to the Part continue to apply as if section 56 had not commenced.

(3)  For the purposes of the application mentioned in subsection (2)  –

(a) a reference in the Financial Institutions (Tasmania) Code to the SSA is taken to be a reference to either relevant Commonwealth body; and

(b) a reference in the Financial Institutions (Tasmania) Code to the SSA of a participating State is taken to be a reference to either relevant Commonwealth body; and

(c) the Financial Institutions (Tasmania) Code applies with all other necessary changes.

(4)  For the purposes of this section a transfer of engagements was started before the transfer date under Part 7 of the Financial Institutions (Tasmania) 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, as required by the relevant Financial Institutions Code;

(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, the SSA gave a direction, under the Financial Institutions (Tasmania) Code, requiring the transfer.

(5)  For the purposes of this section, a merger was started before the transfer date if, before the 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, as required by the relevant Financial Institutions Code;

(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 the SSA that are necessary for the purposes of this section are conferred on each relevant Commonwealth body.

(7)  In this section –

financial institutions agreement see 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 (Tasmania) 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 Financial Institutions Code means –

(a) in relation to a society, the Financial Institutions (Tasmania) Code; or

(b) in relation to a foreign society, the law of another participating State corresponding to the Financial Institutions (Tasmania) Code;

relevant SSA means –

(a) in relation to a society, TOFS; 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 (Tasmania) Code.

51 Mergers and transfers of engagements started under Friendly Societies (Tasmania) Code

(1)  This section applies if a transfer of engagements or merger started before the transfer date under Part 7 of the Friendly Societies (Tasmania) 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 (Tasmania) Code on or after the transfer date and, for that purpose, the Part, and other provisions of the Code relevant for the Part continue to apply as if section 56 had not commenced.

(3)  For the purposes of the application mentioned in subsection (2)  –

(a) a reference in the Friendly Societies (Tasmania) Code to the SSA is taken to be a reference to either relevant Commonwealth body; and

(b) a reference in the Friendly Societies (Tasmania) Code to the SSA of a participating State is taken to be a reference to either relevant Commonwealth body; and

(c) the Friendly Societies (Tasmania) Code applies with all other necessary changes.

(4)  For the purposes of this section a transfer of engagements was started before the transfer date under Part 7 of the Friendly Societies (Tasmania) 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, as required by the relevant Friendly Societies Code;

(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, the SSA gave a direction, under the Friendly Societies (Tasmania) Code, requiring the transfer.

(5)  For the purposes of this section, a merger was started 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, as required by the relevant Friendly Societies Code;

(b) the relevant SSA made a determination, under the Friendly Societies Code, that the merger may be approved by the board of the society or foreign society.

(6)  The functions and powers of the SSA that are necessary for the purposes of this section are conferred on each relevant Commonwealth body.

(7)  In this section –

financial institutions agreement see 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 (Tasmania) Code;

friendly societies legislation see 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 the date, the foreign society was incorporated;

relevant Friendly Societies Code means –

(a) in relation to a society, the Friendly Societies (Tasmania) Code; or

(b) in relation to a foreign society, the law of another participating State corresponding to the Friendly Societies (Tasmania) Code;

relevant SSA means –

(a) in relation to a society, TOFS; 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 (Tasmania) Code.

52 Australian Financial Institutions Appeals Tribunal

(1)  This section applies on the transfer date.

(2)  The Australian Financial Institutions Appeals Tribunal established under section 8 of the AFIC Act ceases to exist and its members go out of office by reason of the Financial Sector Reform (Queensland) Act 1999 of Queensland.

(3)  All applications made to the tribunal under a Code for a review of a decision that have not been decided are taken to have been withdrawn.

(4)  In this section,

Code means the AFIC Code, Financial Institutions Code or Friendly Societies Code.

Part 6 Miscellaneous

53 Regulations

(1)  The Governor may make –

(a) regulations for the purposes of this Act; and

(b) regulations of a savings and transitional nature consequent on the enactment of this Act.

(2)  A provision of any regulations made pursuant to subsection (1)(b) may, if the regulations so provide, take effect –

(a) on and from the day on which this Act receives the Royal Assent or a later date; or

(b) on or from the transfer date or a later date.

(3)  Regulations made under subsection (1)(a) or (b) may –

(a) apply generally or be limited in their application by reference to specified factors; and

(b) apply differently according to different factors, limitations or restrictions of a specified kind; and

(c) authorise any matter to be from time to time determined, applied or regulated by APRA, ASIC or another person or body specified in the regulations.

54 Saving provision

(1)  Nothing in this Act is to be taken as prohibiting or restricting a society from or in carrying on, on and after the transfer date, a pharmaceutical business (whether as owner or otherwise), or holding an interest in a pharmacy or in the business carried on in a pharmacy, in accordance with the laws of this State relating to pharmacies, pharmacists and the practice of pharmacy.

(2)  In this section,

society means an entity that, immediately before the transfer date, was a society under the Friendly Societies (Tasmania) Code.

55 Administration of Act

Until provision is made in relation to this Act by order under section 4 of the Administrative Arrangements Act 1990  –

(a) the administration of this Act is assigned to the Treasurer; and

(b) the department responsible to the Treasurer in relation to the administration of this Act is the Department of Treasury and Finance.

Part 7 Repeals

56 Acts repealed

The Acts specified in Schedule 1 are repealed.

SCHEDULE 1 - Acts repealed SCHEDULE 1 - Acts repealed

Section 56

| Financial Institutions (Application of Laws) Act 1992 (No. 10 of 1992) | | Friendly Societies (Tasmania) Act 1997 (No. 66 of 1997) | | Tasmanian Office of Financial Supervision Act 1992 (No. 11 of 1992) |