10th Feb 2022, 11:59 AM – Senate Regulations and Determinations - Treasury Laws Amendment (Greater Transparency of Proxy Advice) Regulations 2021 - Disallowance

The majority voted in favour of a disallowance motion introduced by SA Senator Rex Patrick (Independent), which means it succeeded and the Treasury Laws Amendment (Greater Transparency of Proxy Advice) Regulations 2021 will no longer have legal force.

What do the regulations do?

According to the explanatory memorandum:

The Regulations amend the Corporations Regulations 2001 to specify:

• circumstances in which voting advice is proxy advice (a kind of financial service); and

• obligations for financial services licensees who provide proxy advice to:

• provide any proxy advice to the entity that is the subject of the proxy advice on the same day it is provided to the client; and

• be independent of their clients.

The Regulations also amend the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations) to expand the range of information that Registrable Superannuation Entity (RSE) licensees must make publicly available on the registrable superannuation entity’s website to include a summary of how voting rights attaching to shares in listed companies that the trustee of the registrable superannuation entity holds, or in which the trustee holds beneficial interests, have been exercised.

Motion text

That the Treasury Laws Amendment (Greater Transparency of Proxy Advice) Regulations 2021, made under the Corporations Act 2001 and the Superannuation Industry (Supervision) Act 1993, be disallowed [F2021L01801].