Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill is an administrative technical amendment to the Australian Securities and Investments Commission Act 2001and the Corporations Act 2001. The bill eliminates potential legal risks that have recently become apparent by validating certain past agreements that were made to employ or engage a small proportion of ASIC staff before the end of 9 March 2017.

From the commencement of this bill, the validation of the agreements means that those affected staff will be taken to have always been valid staff members who were effectively delegated ASIC's functions and powers.

These amendments address various administrative oversights including one that occurred in 1999. At that time, legislative changes shifted the power to employ or engage staff outside of the Public Service Act from ASIC itself to ASIC's chairperson. However, relevant delegation instruments were not updated to reflect this change.

ASIC only recently became aware of this oversight. Successive previous governments have not been aware of it. The irregularities only potentially affect a small proportion of ASIC staff employed outside of the Public Service Act.

The passage of this bill ensures that previous actions taken by those ASIC staff will be effective. In turn this will remove any doubt about the validity of any sanctions that have otherwise been legitimately imposed on people; and any doubt about the effectiveness of the relief that ASIC has provided.

The amendments will have no impact on any current or former ASIC staff members beyond ensuring the validity of their employment and actions. The legislation maintains the status quo, under which the chairperson of ASIC has the ongoing ability to employ or engage staff members and for ASIC to delegate its powers and functions to them.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.