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Legislative Assembly for the ACT: 2002 Week 6 Hansard (16 May) . . Page.. 1775 ..

MS DUNDAS (6.48): I move amendment No 2 circulated in my name [see schedule 1 at page 1779].

This amendment is similar to the one the Assembly has chosen not to accept. It is about making the process more open and accountable. This amendment would have the effect of the Assembly being notified of any changes put up by the schemes the minister approves.

We know what the regulations are, and we can disapprove them. I am suggesting that we add the provision that if any scheme established under these regulations is changed after the initial approval it be notifiable.

As I have said many times tonight, as this fidelity fund is such a new, untested scheme, I believe it is important that the Assembly take a watching brief on how the scheme is functioning and on any modifications the minister seeks to approve as part of the process.

MR CORBELL (Minister for Education, Youth and Family Services, Minister for Planning and Minister for Industrial Relations) (6.49): Mr Speaker, the government will be supporting Ms Dundas' amendment. It is substantially different from her previous amendment, in that it provides for decisions to approve or refuse changes to an approved fidelity fund scheme to be a notifiable instrument. It makes the process transparent. We welcome the suggestion and support the amendment.

MS TUCKER (6.50): We also support this amendment. It makes a change to an approval for a fidelity fund to be a notifiable instrument. At present there is no notification. It seems reasonable that these changes be notifiable, on the basis that the original approval of this scheme is notifiable.

Amendment agreed to.

MS TUCKER (6.51): I seek leave to move two amendments together.

Leave granted.

MS TUCKER: I move amendments 1 and 2 circulated in my name [see schedule 2 at page 1780].

The aim of these amendments is to ensure that the prudential standards determined by the minister impose on fidelity funds obligations similar to those which APRA apply to insurance companies providing building warranty protection. This is to ensure that there is fair competition between all providers of building warranty protection, whether they are an insurance company or a fidelity fund. It should also provide increased comfort to home buyers that their building warranty protection is regulated to the highest industry standard.

These are technical amendments suggested by the drafters, as the quoted section 32 of the Insurance Act was amended recently and will not be coming into effect until 1 July. I acknowledge that the minister has said that the prudential standards to be applied to the

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