Corporations Amendment Regulations 1999 (No. 1) (Cth)
Corporations Amendment Regulations 1999 (No. 1)
Statutory Rules 1999
No. 38
I, WILLIAM PATRICK DEANE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulations under the
Corporations Act 1989. Dated 17 March 1999.
WILLIAM DEANE
Governor-General
By His Excellency’s Command,
JOE HOCKEY
Minister for Financial Services and Regulation
made under the
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These regulations are the
Corporations Amendment Regulations 1999 (No. 1) .
These regulations commence on gazettal.
Schedule 1 amends the
Corporations Regulations 1990 .
(regulation 3)
insert
7.4.01A Exemption from certain requirements in
relation to contract notes
(1) In this regulation:
order means an instruction to buy or sell securities.
(2) Section 842 of the Corporations Law has effect in relation to a dealer to the extent that the requirements of the section are subject to this regulation.
Sending a contract note electronically
(3) The requirement of subsection 842 (2) of the Corporations Law that, in respect of a transaction of sale or purchase of securities, a dealer immediately give a contract note that complies with subsection 842 (3) of the Law to the person for whom the dealer entered into the transaction (the
client ) is satisfied if, in respect of the transaction, the following conditions are satisfied:
(a) the client has given to the dealer prior authorisation to send any contract note electronically to the client in relation to that transaction or all transactions (or all transactions included in a class in which that transaction is included) entered into for the client by the dealer;
(b) the dealer sends the contract note electronically to the client in accordance with the authorisation.
Giving a single contract note for multiple transactions (4)The requirement of subsection 842 (2) of the Corporations Law that, in respect of a transaction of sale or purchase of securities, a dealer immediately give a contract note that complies with subsection 842 (3) of the Law to the person for whom the dealer entered into the transaction (the
client ) is satisfied if, in respect of the transaction, the following conditions are satisfied:
(a) the dealer is a member of a securities exchange;
(b) the transaction takes place in accordance with the business rules of the securities exchange;
(c) the transaction forms part of a series of transactions made to complete an order placed with the dealer;
(d) the client has given to the dealer, in relation to that order or all orders (or all orders included in a class in which that order is included) placed with the dealer by the client, prior authorisation to give to the client a single contract note in respect of a series of transactions carried out under the order instead of an individual contract note in respect of each transaction in the series;
(e) the dealer gives to the client a single contract note in respect of a series of transactions in which the transaction is included that:
(i) is in accordance with the authorisation; and
(ii) subject to subregulation (5), complies with subsection 842 (3) of the Law;
(f) the contract note is given:
(i) before the end of the business day on which that series of transactions was carried out; or
(ii) otherwise as permitted by the business rules of the securities exchange.
Price averaging
(5) The requirement of paragraph 842 (3) (g) of the Corporations Law that a contract note in respect of a transaction of sale or purchase of securities given to a person (the
client ) by a dealer specify the price per unit of the securities to which the transaction relates is satisfied if the following conditions are satisfied:
(a) the dealer is a member of a securities exchange;
(b) the transaction takes place in accordance with the business rules of the securities exchange;
(c) the transaction forms part of a series of transactions made to complete an order placed with the dealer;
(d) the client has, in accordance with the business rules of the securities exchange, given to the dealer, in relation to that order or all orders (or all orders included in a class in which that order is included) placed with the dealer by the client, prior authorisation to give to the client a single contract note in respect of the series of transactions that specifies the average price per unit of securities sold or purchased in the series of transactions, instead of an individual contract note in respect of each transaction in the series that specifies the price per unit of the securities bought or sold in the transaction to which each contract note relates;
(e) the dealer gives the contract note to the client in accordance with the authorisation;
(f) unless otherwise provided by the business rules of the securities exchange, the dealer, if requested to do so by the client, also gives to the client a document that specifies the price per unit of the securities sold or bought in each transaction in the series.
Authorisations
(6) For this regulation, an authorisation given by a person to a dealer:
(a) must be given orally, or in writing, by the person; and
(b) is effective until it is revoked, either orally or in writing, by the person.
(7) If a person gives an oral authorisation to a dealer, or revokes an authorisation orally, the dealer must:
(a) make a written record of the authorisation or revocation; and
(b) send a copy of the written record to the person.
insert
7.4.04A Charging brokerage on principal
transactions
(1) Subsection 843 (4) of the Corporations Law has effect in relation to a dealer to the extent that it does not prevent a dealer who is a member of a securities exchange from charging a non-dealer brokerage, commission or any other fee in respect of a transaction if the non-dealer has given to the dealer prior authorisation to so charge the non-dealer in respect of any transaction entered into by the dealer with the non‑dealer.
(2) For this regulation, an authorisation given to a dealer by a non-dealer:
(a) must be given orally, or in writing, by the non‑dealer; and
(b) is effective until it is revoked, either orally or in writing, by the non-dealer.
(3) If a non-dealer gives an oral authorisation to a dealer, or revokes an authorisation orally, the dealer must:
(a) make a written record of the authorisation or revocation; and
(b) send a copy of the written record to the non‑dealer.
insert
8.4.01B Exemption from certain requirements in
relation to contract notes
(1) In this regulation:
order means an instruction, or a series of instructions, to acquire or dispose of a futures contract.
(2) Section 1206 of the Corporations Law has effect in relation to a futures broker to the extent that the requirements of the section are subject to this regulation.
Sending a contract note electronically
(3) The requirement of subsection 1206 (1) of the Corporations Law that, in respect of a transaction, being the acquisition or disposal of a futures contract, a futures broker give, as soon as practicable, a contract note that complies with subsection 1206 (3), (4) or (5) of the Law to the person on whose behalf the broker entered into the transaction (the
client ) is satisfied if, in respect of the transaction, the following conditions are satisfied:
(a) the client has given to the broker prior authorisation to send any contract note electronically to the client in relation to that transaction or all transactions (or all transactions included in a class in which that transaction is included) entered into on behalf of the client by the broker; and
(b) the broker sends the contract note electronically to the client in accordance with the authorisation.
Giving a single contract note for multiple transactions
(4) The requirement of subsection 1206 (1) of the Corporations Law that, in respect of a transaction, being the acquisition or disposal of a futures contract, a futures broker give, as soon as practicable, a contract note that complies with subsection 1206 (3) of the Law to the person on whose behalf the broker entered into the transaction (the
client ) is satisfied if, in respect of the transaction, the following conditions are satisfied:
(a) the broker is a member of a futures exchange;
(b) the transaction takes place in accordance with the business rules of the futures exchange;
(c) the transaction forms part of a series of transactions made to complete an order placed with a broker;
(d) the client has given to the broker, in relation to that order or all orders (or all orders included in a class in which that order is included) placed with a broker by the client, prior authorisation to give to the client a single contract note in respect of a series of transactions carried out under the order instead of an individual contract note in respect of each transaction in the series;
(e) the broker gives to the client a single contract note in respect of a series of transactions in which the transaction is included that:
(i) is in accordance with the authorisation; and
(ii) subject to subregulation (5), complies with subsection 1206 (3) of the Law;
(f) the contract note is given:
(i) before the end of the business day on which that series of transactions was carried out; or
(ii) otherwise as permitted by the business rules of the futures exchange.
Price averaging
(5) The requirement of subparagraph 1206 (3) (d) (i) and sub-subparagraph 1206 (3) (d) (ii) (B) of the Corporations Law that a contract note in respect of a transaction, being the acquisition or disposal of a futures contract, given to a person (the
client ) by a futures broker include a statement of the contract price is satisfied if the following conditions are satisfied:
(a) the broker is a member of a futures exchange;
(b) the transaction takes place in accordance with the business rules of the futures exchange;
(c) the transaction forms part of a series of transactions made to complete an order placed with a broker;
(d) the client has, in accordance with the business rules of the futures exchange, given to the broker, in relation to that order or all orders (or all orders included in a class in which that order is included) placed with a broker by the client, prior authorisation to give to the client a single contract note in respect of the series of transactions that specifies the average contract price of the futures contracts acquired or disposed of in the series of transactions, instead of an individual contract note in respect of each transaction in the series that specifies the contract price of the futures contract acquired or disposed of in the transaction to which each contract note relates;
(e) the broker gives the contract note to the client in accordance with the authorisation;
(f) unless otherwise provided by the business rules of the futures exchange, the broker, if requested to do so by the client, gives to the client a document that includes a statement of the contract price of each futures contract acquired or disposed of in each transaction in the series.
Authorisations
(6) For this regulation, an authorisation given by a person to a broker:
(a) must be given orally, or in writing, by the person; and
(b) is effective until it is revoked, either orally or in writing, by the person.
(7) If a person gives an oral authorisation to a broker, or revokes an authorisation orally, the broker must:
(a) make a written record of the authorisation or revocation; and
(b) send a copy of the written record to the person.
insert
8.4.03B Sending a monthly statement
electronically
(1) Subsection 1207 (1) of the Corporations Law has effect in relation to a futures broker to the extent that the requirement of that subsection that the broker send a monthly statement to a client of the broker is satisfied if:
(a) the client has given to the broker a prior authorisation to send any monthly statement to the client electronically; and
(b) subject to regulation 8.4.03A, the broker sends the monthly statement to the client electronically within the time specified in section 1207.
(2) For this regulation, an authorisation given to a broker by a client of the broker:
(a) must be given orally, or in writing, by the client; and
(b) is effective until it is revoked, either orally or in writing, by the client.
(3) If a client of a broker gives an oral authorisation to the broker, or revokes an authorisation orally, the broker must:
(a) make a written record of the authorisation or revocation; and
(b) send a copy of the written record to the client.
1. These regulations amend Statutory Rules 1990 No. 455, as amended by 1991 Nos. 218, 219, 281, 341, 453, 478 and 479; Act No. 200, 1991; Statutory Rules 1992 Nos. 230, 281, 364, 395 and 450; 1993 Nos. 135, 207 and 277; 1994 Nos. 35, 108, 153, 221, 251, 302 and 430; 1995 Nos. 222, 344, 345 and 398; 1996 Nos. 26, 51, 55, 90, 205, 218 and 343; 1997 Nos. 10, 81, 102 and 142; 1998 Nos. 9, 22, 109, 128, 161, 185, 186, 239 and 293.
2. Made by the Governor-General on 17 March 1999, and notified in the
Commonwealth of Australia Gazette
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