Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

The Labor Party supports this bill and we support its expeditious passage through this place and the other place. I note that the government has provided a full briefing to the opposition, which the opposition appreciates, and we understand the reasons why the government has moved in this direction. ASIC has discovered that certain delegations being relied upon did not meet particular requirements under the ASIC Act, leading to a defect in the employment of staff and consultants, in some instances, and the potential for some legal uncertainty.

It is best that the House and the Senate remedy this situation where the functions and powers of affected staff members included coercive powers such as compelling the production of documents that may then have been used in evidence in court proceedings, so a range of outcomes under those acts and other laws ASIC administers may have been open to legal challenge. The bill before us today is to validate certain agreements to employ or engage ASIC staff that were purportedly made before the end of 9 March 2017, going back for quite some period, over many years, and to provide a legal basis for the exercise, by affected staff members, of delegated functions and powers of ASIC.

The amendments also deal with the consequences of validating those agreements for the purposes of provisions of the Corporations Act and the ASIC Act dealing with the transition from the old corporations and ASIC legislation. ASIC, of course, plays a vital role in our economy. It is vital that the decisions and actions taken by senior ASIC staff over a considerable period of years have the force of law and be respected. The opposition appreciates how this situation arose. We support the government's efforts to remedy the situation and accordingly we will vote for this bill in both houses.

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

Firstly, I would like to thank members who have contributed to this debate, including the shadow Treasurer just now. In summing up, the bill makes technical amendments to the Australian Securities and Investments Commission Act 2001, ASIC Act, and the Corporations Act 2001. The amendments respond to the recent discovery of the invalid delegations of power to a small number of purported ASIC employees. These invalid delegations were, largely, due to an administrative error that occurred in 1999.

These invalid delegations created a risk that action taken under the purported delegation will be challenged on the basis that it was not legally valid action. The bill eliminates these risks by retrospectively amending the ASIC Act and the Corporations Act to deem those affected staff as always having been validly appointed. The bill will have no practical impact on ASIC's current or former staff but resolves any legal uncertainties or risks, and with that I commend this bill to the House.

Question agreed to.