Draft Banking Regulation 2016 Released
Thursday 6 October 2016 @ 9.53 a.m. | Legal Research
The Treasury has released a draft copy of the proposed Banking Regulation 2016 for public comment. The new Regulation is a remake of the existing Banking Regulations 1966, which is currently due to sunset on 1 April 2017. The proposed Regulation will also incorporate the substantive provisions of the Banking (Unclaimed Money) Regulations 1993. There are no significant changes to the content of the regulation, with the emphasis on updating and simplifying the currently existing provisions. The closing date for submissions on the draft is Friday, 28 October 2016.
According to the Explanatory Memorandum, the “key changes” made by the regulation are:
- Consolidating the Banking Regulations 1966 and the Banking (Unclaimed Moneys) Regulations 1993 into a single Regulation;
- Repealing redundant provisions, such as those that relate to dates which have passed and now have no effect;
- Repealing spent or redundant associated regulations, including those due to sunset in the next two years;
- Using more consistent language throughout the Regulation, for example referring to ‘accounts’ throughout the Regulation rather than using various similar terms; and
- Making language and formatting changes to reflect contextual changes and align with current drafting practices, such as referring to ‘sections’ rather than ‘regulations’.
The proposed section 11 of the Regulations “Financial claims scheme – limit on payments” now prescribes a limit of $250,000 in relation to a protection account or accounts that an account holder has with a particular declared authorised deposit-taking institution. This replaces the current prescription in section 5 of the 1966 Regulations of a method for working out the limit.
Redundant regulations being repealed in Schedule 1 include the Banking (Unclaimed Moneys) Regulations 1992, the Commonwealth Bank (Conversion into Public Company) Regulations, the Commonwealth Banking Corporation Service Regulations, the Commonwealth Banks Regulations and the Proceeds of Crime (Commonwealth Bank of Australia) Regulations.
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