Victorian Fit and Proper Test Framework

Details

Topic:: Regulatory reform
Audiences:: All audiences, State government - regulatory policy, State government - regulatory operations
Regulatory functions:: Legislation, Permissions, Practice and processes
Industry:: All relevant industries
Document types:: Framework, Guide, Template
Author:: Department of Treasury and Finance
Date published:: 20 September 2024

The Victorian Fit and Proper Test Framework is a set of guides and templates that helps policy makers and regulators develop fit and proper tests (FPTs) that are appropriate, well designed and efficiently administered.

The framework provides step-by-step guidance to ensure that fit and proper tests:

align with best practice
reflect the level of risk being managed
minimise burden on business and regulators, such as by standardising administration.

Apply the framework to new or existing FPT schemes, informed by the guide. Use the template to document and analyse your findings.

How this tool can help

The Victorian Fit and Proper Tests Framework can help policy makers and regulators:

decide when an FPT is an appropriate tool to mitigate harm
design an FPT that mitigates risk and is efficient to administer.

This will help in designing fit and proper tests that effectively reduce the risk of harm and are straightforward to administer, while reducing burden on businesses.

Support to apply this tool

The Department of Treasury and Finance (DTF) can also run workshops with teams that are reviewing or developing fit and proper tests. These have proved useful for teams, with one participant stating:

‘We’ve been very happy to participate in the workshops with you; the workshops have been incredibly helpful for us.’

Contact the DTF at reg.reform@dtf.vic.gov.au to: