Corporations Amendment (Compensation Arrangements) Regulation 2013 (Cth)

Corporations Amendment (Compensation Arrangements) Regulation 2013

Select Legislative Instrument No. 190, 2013

I, Quentin Bryce AC CVO, Governor‑General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulation under the Corporations Act 2001.

Dated 25 July 2013

Quentin Bryce

Governor‑General

By Her Excellency’s Command

Bernie Ripoll

Parliamentary Secretary to the Treasurer

Contents

1............ Name of regulation............................................................................. 1

2............ Commencement.................................................................................. 1

3............ Authority............................................................................................ 1

4............ Schedule(s)......................................................................................... 1

Schedule 1—Amendments                                                                       2

Corporations Regulations 2001                                                           2

1Name of regulation

This regulation is the Corporations Amendment (Compensation Arrangements) Regulation 2013.

2Commencement

This regulation commences on the day after it is registered.

3Authority

This regulation is made under the Corporations Act 2001.

4Schedule(s)

Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1—Amendments

Corporations Regulations 2001

1  Regulation 8.2.04 (table item 1)

Omit “New Zealand Registrar of Companies”, substitute “Registrar of Financial Service Providers of New Zealand”.

2  Regulation 8.2.04 (table item 2)

Omit “New Zealand Securities Commission”, substitute “Financial Markets Authority of New Zealand”.

3  Item 6 of Schedule 8C (heading)

Omit “Subsection”, substitute “After subsection”.

4  Item 6 of Schedule 8C

Omit “substitute”, substitute “Insert:”.

5  Item 6 of Schedule 8C

Omit “(2) If”, substitute “(2A) Despite subsection (2), if”.

6  At the end of item 6 of Schedule 8C

Add:

        (2B)  Despite subsection (2), if:

                   (a)  the requirements of subsection 885C(1) are satisfied in relation to a participant and a financial market; and

                   (b)  the loss is also connected (see section 888A) with a financial market to which Division 4 applies; and

                   (c)  the person did not (expressly or impliedly) instruct the participant to use a particular one of those markets; and

                   (d)  it is not reasonably apparent from the usual business practice of the participant which of those markets the participant would use when acting for the person; and

                   (e)  the loss is connected with a transaction effected through a financial market to which Division 3 applies; and

                    (f)  a claim cannot be made, or has been disallowed, under Division 4 (see subsection 888A(1));

the loss is taken to be a Division 3 loss and not to be a loss that is connected with a financial market to which Division 4 applies.