James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

TREASURY LAWS AMENDMENT (2017 MEASURES NO. 3) BILL 2017

This Bill is an administrative technical amendment to the Australian Securities and Investments Commission Act 2001 and 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.

Katy Gallagher (ACT, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak in support of the Treasury Laws Amendment (2017 Measures No. 3) Bill 2017 and its expeditious passage through the chamber. 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, and legal uncertainty as to whether people employed by ASIC were lawfully entitled to exercise certain functions and powers. Those functions and powers include 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 the other laws ASIC had administered, may be 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, and thus 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 are 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.

It is important that the operations of our corporate markets and financial services regulator are beyond reproach. A properly well-functioning regulator ensures there is confidence that the financial system is operating properly for the benefit of all Australians. As I stated in my opening remarks, Labor supports this bill and will support its speedy passage through the Senate this morning.

Scott Ryan (Victoria, Liberal Party, Special Minister of State) Share this | Link to this | Hansard source

Given the motion passed yesterday and the understanding of the Senate in allowing this to be dealt with in this period of legislation, I will not add a great deal to the debate, other than to thank senators for their understanding. I commend the bill to the Senate.

The Acting Deputy President:

The question is that the bill be now read a second time.

Question agreed to.

Bill read a second time.