Part of a comprehensive analysis of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
All Parts in This Series
- PART 1
- PART 2
- PART 3
- PART 4
- PART 5
- PART 5
- PART 6
- PART 7
- PART 8
- PART 9
- PART 10
- PART 11
- PART 12
- PART 13 (this article)
Part of a comprehensive analysis of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
All Parts in This Series
- PART 1
- PART 2
- PART 3
- PART 4
- PART 5
- PART 5
- PART 6
- PART 7
- PART 8
- PART 9
- PART 10
- PART 11
- PART 12
- PART 13 (this article)
Part of a comprehensive analysis of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
All Parts in This Series
- PART 1
- PART 2
- PART 3
- PART 4
- PART 5
- PART 5
- PART 6
- PART 7
- PART 8
- PART 9
- PART 10
- PART 11
- PART 12
- PART 13 (this article)
Part of a comprehensive analysis of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
All Parts in This Series
- PART 1
- PART 2
- PART 3
- PART 4
- PART 5
- PART 5
- PART 6
- PART 7
- PART 8
- PART 9
- PART 10
- PART 11
- PART 12
- PART 13 (this article)
Analysis of Key Provisions in Part 13: Miscellaneous of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
Part 13 of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 (the “Act”) contains a range of miscellaneous provisions that serve to support the effective administration, enforcement, and operation of the Act. These provisions address liability protections, confidentiality, regulatory powers, procedural requirements, penalties, and cross-references to other legislation. This article provides a detailed examination of these key provisions, explaining their purposes and legal implications.
Protection from Liability and Indemnity for Agency Officers
"No liability shall be incurred by — (a) the Agency; (b) any director, officer, employee or agent of the Agency; or (c) any person acting under the direction of the Agency, as a result of anything done (including any statement made) or omitted to be done in good faith in — (d) the exercise or purported exercise of any power under this Act; (e) the performance or purported performance of any function or duty under this Act; or (f) the execution or purported execution of this Act." — Section 79
Verify Section 79 in source document →
Section 79 provides crucial protection from liability for the Agency and its officers when acting in good faith under the Act. This immunity encourages diligent and decisive action by the Agency without fear of personal or institutional legal repercussions, provided their conduct is honest and in accordance with the Act. It ensures that the Agency can perform its regulatory and protective functions effectively, especially in sensitive financial matters.
"The Agency must indemnify a person mentioned in subsection (2) against all costs and expenses reasonably incurred by the person in connection with any action, suit or other legal proceedings to which the person is a party by reason of anything done (including any statement made) or omitted to be done in good faith in the course of or in connection with any of the matters mentioned in section 79(d), (e) or (f)." — Section 79A
Verify Section 79A in source document →
Complementing Section 79, Section 79A mandates indemnification by the Agency for its officers against legal costs arising from good faith actions under the Act. This provision further safeguards individuals from financial burdens associated with defending legitimate actions taken in their official capacity, promoting confidence and accountability in the Agency’s operations.
Confidentiality of Information and Related Penalties
"No person who is or has been a member, a director, an officer, an employee or an agent of the Agency may disclose any information relating to the affairs of the Agency or of any other person which has been obtained by the firstmentioned person in the performance of his or her duties or the exercise of his or her functions unless such disclosure is made — (a) with the permission of the person from whom the information was obtained or, where the information is the confidential information of a third person, with the permission of that third person; (b) for the purpose of the performance of his or her duties or the exercise of his or her functions under this Act; (c) in compliance with the requirement of any court or any written law; or (d) for the purpose of assisting any public officer or officer of any other statutory board in the investigation or prosecution of any offence under any written law." — Section 80(1)
Verify Section 80 in source document →
Section 80(1) imposes strict confidentiality obligations on Agency personnel regarding information obtained in the course of their duties. This provision protects sensitive financial and personal data, maintaining trust in the Agency and safeguarding privacy. Exceptions are carefully delineated to allow necessary disclosures for legal compliance or enforcement purposes.
"Any person who contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both." — Section 80(4)
Verify Section 80 in source document →
The severe penalties under Section 80(4) underscore the importance of confidentiality. They act as a deterrent against unauthorized disclosures that could undermine the integrity of the deposit insurance and policy owners’ protection schemes or harm affected parties.
Ministerial Exemption Powers
"The Minister may, by regulations, exempt any person or class of persons from all or any of the provisions of this Act, subject to such terms or conditions as may be prescribed." — Section 81(1)
Verify Section 81 in source document →
Section 81 empowers the Minister to grant exemptions from the Act’s provisions, allowing flexibility to accommodate unique circumstances or evolving regulatory needs. This power ensures that the Act remains adaptable and responsive without requiring frequent legislative amendments.
"Any person who contravenes any term or condition prescribed under subsection (1) or specified by the Minister under subsection (3)(a) shall be guilty of an offence." — Section 81(4)
Verify Section 81 in source document →
To maintain the integrity of exemptions, Section 81(4) imposes penalties for breaches of exemption conditions. This ensures that exemptions are not exploited and that compliance remains enforceable.
Appointment of Assistants and Public Servant Status
"The Authority may, subject to such conditions or restrictions as it thinks fit, appoint any person to exercise any of its powers or perform any of its functions or duties under this Act, either generally or in any particular case, except the power to make subsidiary legislation." — Section 82(1)
Verify Section 82 in source document →
Section 82 allows the Authority to delegate powers and functions to appointed assistants, facilitating operational efficiency and specialization. This delegation is essential for managing complex regulatory tasks and ensuring timely execution of duties.
"Any person appointed by the Authority under subsection (1) or (2) is deemed to be a public servant for the purposes of the Penal Code 1871." — Section 82(3)
Verify Section 82 in source document →
By deeming appointed persons as public servants under the Penal Code, Section 82(3) subjects them to legal standards of conduct and accountability applicable to public officials. This provision reinforces ethical behaviour and legal responsibility in the exercise of delegated powers.
Inspection and Information-Gathering Powers
"The Authority may from time to time inspect, under conditions of secrecy, the books of any DI Scheme member or PPF Scheme member for the purposes of this Act." — Section 83(1)
Verify Section 83 in source document →
Section 83 grants the Authority inspection powers over the records of Deposit Insurance (DI) Scheme and Policy Owners’ Protection Fund (PPF) Scheme members. This oversight is vital for monitoring compliance, detecting irregularities, and protecting the interests of insured depositors and policy owners.
"Any person who, without reasonable excuse, contravenes subsection (2) or a requirement of the Authority under subsection (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction." — Section 83(5)
Verify Section 83 in source document →
The penalties in Section 83(5) deter obstruction or non-compliance with inspection requirements, ensuring that the Authority can effectively carry out its supervisory role.
"The Authority may, by written notice, require a DI Scheme member or PPF Scheme member to — (a) provide such information; or (b) produce any book, at such time and in such manner as the Authority may reasonably require for the proper discharge of its functions." — Section 84(1)
Verify Section 84 in source document →
Section 84 empowers the Authority to demand information and documents necessary for its functions. This power is fundamental to regulatory transparency and enforcement.
"Any DI Scheme member or PPF Scheme member which fails to or neglects to provide any information or produce any book required by the Authority under this section shall be guilty of an offence." — Section 84(4)
Verify Section 84 in source document →
"Any DI Scheme member or PPF Scheme member which in purported compliance with subsection (1), without reasonable care, provides any information or produces any book that is inaccurate, false or misleading shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000." — Section 84(5)
Verify Section 84 in source document →
Sections 84(4) and 84(5) impose strict obligations and penalties to ensure truthful and timely compliance with information requests, which is essential for the Authority’s effective regulation and protection of scheme members.
Service of Documents and Electronic Service
"Any notice, order or document required or authorised by this Act to be served on any person may be served — (a) by delivering it to the person or to some adult member or employee of his or her family or household at his or her last known place of residence; (b) by leaving it at his or her usual or last known place of residence or business in an envelope addressed to the person; (c) by sending it by registered post addressed to the person at his or her usual or last known place of residence or business; or (d) in the case of a body corporate, firm or body of persons — (i) by delivering it to the secretary or other similar officer of the body corporate, firm or body of persons at its registered office or principal place of business; or (ii) by sending it by registered post addressed to the body corporate, firm or body of persons at its registered office or principal place of business." — Section 85(1)
Verify Section 85 in source document →
Section 85 sets out detailed methods for serving documents, ensuring clarity and fairness in procedural communications. Proper service is critical for upholding due process and enabling parties to respond appropriately.
Admissibility of Evidence
"Any copy or print-out of that electronic record, is admissible as evidence of the facts stated or contained therein if that electronic record, copy or print-out (d) is duly authenticated in the manner specified in subsection (8) or is otherwise authenticated in the manner provided in the Evidence Act 1893 for the authentication of computer output." — Section 86(6)(d)
Verify Section 86 in source document →
Section 86(6)(d) facilitates the use of electronic records as evidence in legal proceedings, reflecting modern evidentiary standards and supporting efficient enforcement of the Act.
Application and Non-Application of Other Acts
"Nothing in this Act, with the exception of sections 58, 59, 60, 62 and 79, affects the operation of the Companies Act 1967 in relation to its application to a company that is designated as the deposit insurance and policy owners’ protection fund agency under section 56." — Section 88
Verify Section 88 in source document →
Section 88 clarifies that the Companies Act 1967 generally continues to apply to the Agency, except for specific provisions. This ensures that the Agency remains subject to corporate governance and regulatory standards, preserving legal consistency.
"The provisions of the Insurance Act 1966 (except where expressly mentioned) do not apply to the Agency and anything done by it under this Act." — Section 89
Verify Section 89 in source document →
Section 89 exempts the Agency from the Insurance Act 1966, recognizing its distinct statutory role and avoiding regulatory overlap or conflict.
"The Public Trustee is not under a duty to do any of the following: (a) take any step to trace or contact any entitled person for the purpose of making payment of the compensation moneys to the person; (b) despite section 10(3) of the Public Trustee Act 1915 and rule 22 of the Public Trustee Rules, invest any compensation moneys for the benefit of any entitled person; (c) despite section 21 of the Public Trustee Act 1915 and rule 22 of the Public Trustee Rules, pay any interest on any compensation moneys to any entitled person." — Fifth Schedule, paragraph 2
Verify source in source document →
The Fifth Schedule limits the duties of the Public Trustee in relation to compensation moneys, streamlining the administration of funds and clarifying responsibilities.
"A person is not qualified for appointment as an auditor under paragraph 3 unless he or she is a public accountant who is registered or deemed to be registered under the Accountants Act 2004." — Sixth Schedule, paragraph 4; Seventh Schedule, paragraph 4
Verify source in source document →
The Sixth and Seventh Schedules require auditors to be qualified public accountants, ensuring professional standards in auditing DI Scheme and PPF Scheme members.
Penalties for Non-Compliance
The Act imposes significant penalties to enforce compliance and deter misconduct:
- Confidentiality breaches: Up to $125,000 fine and/or 3 years imprisonment (Section 80(4)).
- Exemption condition violations: Offence liability (Section 81(4)).
- Obstruction of Authority inspections: Up to $100,000 fine and/or 2 years imprisonment, plus daily fines for continuing offences (Section 83(5)).
- Failure to provide information or produce books: Offence liability (Section 84(4)).
- Providing false or misleading information: Up to $125,000 fine (Section 84(5)).
- Obstruction of auditors: Up to $4,000 fine (Sixth and Seventh Schedules, Section 10).
These penalties emphasize the seriousness of compliance and the protection of the integrity of the deposit insurance and policy owners’ protection schemes.
Saving and Transitional Provisions
"Any exemption granted by the Authority under section 6(2) of the repealed Act immediately before 1 May 2011 continues and is deemed to have been granted under section 6(2) of this Act, and any condition to which the exemption was subject immediately before that date continues and is deemed to have been imposed under section 6(5) of this Act." — Section 92(1)
Verify Section 92 in source document →
Section 92 ensures continuity and legal certainty by preserving exemptions and conditions from the repealed Act, facilitating a smooth transition to the current legislative framework.
Conclusion
Part 13 of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 provides essential miscellaneous provisions that underpin the effective functioning of the Agency and the Authority. By establishing protections for officers, enforcing confidentiality, enabling regulatory oversight, prescribing penalties, and clarifying interactions with other legislation, these provisions collectively ensure that the deposit insurance and policy owners’ protection schemes operate with integrity, transparency, and accountability.
Sections Covered in This Analysis
- Section 79 – Protection from liability
- Section 79A – Indemnity for legal costs
- Section 80 – Confidentiality and penalties
- Section 81 – Ministerial exemption powers and penalties
- Section 82 – Appointment of assistants and public servant status
- Section 83 – Inspection powers and penalties
- Section 84 – Information and book production powers and penalties
- Section 85 – Service of documents
- Section 86 – Admissibility of electronic evidence
- Section 88 – Application of Companies Act 1967
- Section 89 – Non-application of Insurance Act 1966
- Section 90 – Amendment of Schedules
- Section 91 – Making of regulations
- Section 92 – Saving and transitional provisions
- Fifth Schedule – Duties and limitations of Public Trustee
- Sixth and Seventh Schedules – Auditor qualifications and offences
Source Documents
For the authoritative text, consult SSO.