National Companies and Securities Commission (State Provisions) Amendment Act 1986 (NSW)

NATIONAL COMPANIES AND SECURITIES

COMMISSION (STATE PROVISIONS) AMENDMENT ACT

1986 No. 67

NEW SOUTH WALES

TABLE OF PROVISIONS

1.       Short title

2.        Commencement

3.        Principal Act

4.        Amendment of Act No. 60, 1981

SCHEDULE 1—AMENDMENTS TO THE PRINCIPAL ACT IN CONSEQUENCE OF THE ENACTMENT OF PART III OF THE COMPANIES AND SECURITIES LEGISLATION AMENDMENT (FUTURES INDUSTRY) ACT 1986 OF THE COMMONWEALTH

SCHEDULE 2—MISCELLANEOUS AMENDMENTS TO THE PRINCIPAL ACT

NATIONAL COMPANIES AND SECURITIES COMMISSION

(STATE PROVISIONS) AMENDMENT ACT 1986 No. 67

NEW SOUTH WALES

Act No. 67, 1986

An Act to amend the National Companies and Securities Commission (State Provisions) Act 1981 in consequence of the enactment by the Commonwealth Parliament of certain amendments to the National Companies and Securities Commission Act 1979 of the Commonwealth. [Assented to, 21 May 1986]

National Companies and Securities Commission (State Provisions)

Amendment 1986

BE it enacted by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Council and Legislative Assembly of New South Wales in Parliament assembled, and by the authority of the same, as follows:

Short title

1. This Act may be cited as the "National Companies and Securities Commission (State Provisions) Amendment Act 1986".

Commencement

2. (1) Except as provided by subsections (2)-(4), this Act shall commence on the date of assent to this Act.

(2) Section 4, in its application to a provision of Schedules 1 and 2, shall commence or be deemed to have commenced on the day on which the provision commences or commenced.

(3) Schedule 1 shall commence on the day on which Part III of the Companies and Securities Legislation Amendment (Futures Industry) Act 1986 of the Commonwealth comes into operation.

(4) Schedule 2 shall commence or be deemed to have commenced on the day on which Part VI of the Companies and Securities Legislation (Miscellaneous Amendments) Act 1985 of the Commonwealth comes or came into operation.

Principal Act

3. The National Companies and Securities Commission (State Provisions)

Act 1981 is referred to in this Act as the Principal Act.

Amendment of Act No. 60, 1981

4. The Principal Act is amended in the manner set forth in Schedules 1

and 2.

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National Companies and Securities Commission (State Provisions)

Amendment 1986

SCHEDULE 1

(Sec. 4)

AMENDMENTS TO THE PRINCIPAL ACT IN CONSEQUENCE OF THE ENACTMENT OF PART III OF THE COMPANIES AND SECURITIES LEGISLATION AMENDMENT (FUTURES INDUSTRY) ACT 1986 OF THE COMMONWEALTH

(1) Section 3 (Interpretation)—

Section 3 (1), definition of "futures contract"—

After the definition of "functions", insert:

"futures contract" means a futures contract within the meaning of the Futures Industry (New South Wales) Code or of the provisions of a law in force in a participating State or in a participating Territory that correspond with that Code;

(2) Section 16 (Restrictions on dealings in securities and futures

contracts)—

(a) Section 16 (1), (2)—

Omit the subsections, insert instead:

(1) A person who—
(a) is, or has at any time been—

(i)  appointed for the purposes of this Act or any other prescribed Act or law;

(ii)  engaged as a member of the staff of the

Commission; or

(iii)  authorized to perform or exercise any function or power of the Commission or any function or power on behalf of the Commission; and

(b) has, by reason that the person is, or has at any time been, so appointed, engaged or authorized, information that is not generally available but, if it were, would be likely materially to affect—

(i) the price of securities; or
(ii) the price for dealing in a futures contract,

National Companies and Securities Commission (State Provisions)

Amendment 1986

SCHEDULE 1—continued

AMENDMENTS TO THE PRINCIPAL ACT IN CONSEQUENCE OF THE ENACTMENT OF PART III OF THE COMPANIES AND SECURITIES LEGISLATION AMENDMENT (FUTURES INDUSTRY) ACT 1986 OF THE COMMONWEALTH—continued

shall not—

(c)	in a case where paragraph (b) (i) applies—deal in, or cause or procure any other person to deal in, those securities; or
(d)	in a case where paragraph (b) (ii) applies—deal in, or cause or procure any other person to deal in, that futures contract or a futures contract of the same kind as that futures contract.

Penalty: $20,000 or imprisonment for 5 years.

(2) Where a person to whom subsection (1) applies has information as mentioned in that subsection and, in contravention of that subsection—

(a)	deals in, or causes or procures another person to deal in, securities; or
(b)	deals in, or causes or procures another person to deal in, a futures contract,

the first-mentioned person is liable to compensate any other party to the transaction for any loss sustained by that party by reason of—

(c)	were dealt in in that transaction and the price at which	they would be likely to have been dealt in in such a
any difference between the price at which the securities
transaction at the time when the first-mentioned transaction took place if the information had been generally available; or
(d)	any difference between the price at which that dealing in that futures contract took place and the price at which it would be likely to have taken place if the information had been generally available,

as the case may be.

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National Companies and Securities Commission (State Provisions)

Amendment 1986

SCHEDULE 1—continued

\MENDMENTS TO THE PRINCIPAL ACT IN CONSEQUENCE OF THE ENACTMENT OF PART III OF THE COMPANIES AND SECURITIES LEGISLATION AMENDMENT (FUTURES INDUSTRY) ACT 1986 OF THE COMMONWEALTH—continued

(b) Section 16 (5)—

Omit the subsection, insert instead:

(5) An action under this section for recovery of compensation for a loss is not maintainable after the end of the period of 2 years commencing on the day of completion of—

(a)	the transaction in which securities were dealt in and in which the loss occurred; or
(b)	the dealing in a futures contract, being the dealing in which the loss occurred,

as the case requires.

(c) Section 16 (8)—

After section 16 (7), insert:

(8) An expression (other than a reference to a futures contract)

used—

(a) in a provision of subsection (1) (b) (ii) or (d), (2) (b) or (d) or (5) (b); or

(b) in a provision of the Futures Industry (New South Wales)

Code,

has the same meaning in that provision as it has in that Code.

(3) Section 17 (Notification of interests)—

(a) Section 17(1) (ca), (cb)—

After section 17(1) (c), insert:

(ca) a futures contract in which the person has a relevant

interest;

(cb) a futures contract that is of the same kind as a futures

contract in which the person has a relevant interest;

National Companies and Securities Commission (State Provisions)

Amendment 1986

SCHEDULE I—continued

AMENDMENTS TO THE PRINCIPAL ACT IN CONSEQUENCE OF THE ENACTMENT OF PART III OF THE COMPANIES AND SECURITIES LEGISLATION AMENDMENT (FUTURES INDUSTRY) ACT 1986 OF THE COMMONWEALTH—continued

(b) Section 17 (2)—

Omit "or particular securities", insert instead ", particular securities or a particular futures contract,".

(c) Section 17 (3)—

After "securities", insert ", or in a futures contract, whether a futures contract is of the same kind as another futures contract".

SCHEDULE 2

(Sec. 4)

MISCELLANEOUS AMENDMENTS TO THE PRINCIPAL ACT

(1) Section 3 (Interpretation)—

Section 3 (1), definition of "investment contract"—

Omit the definition.

(2) Section 8 (Power to summon witnesses and take evidence)—

Section 8 (3)—

Omit the subsection, insert instead:

(3) The oath or affirmation to be taken or made by a person for the purposes of this section is an oath or affirmation that the evidence that the person will give will be true.

(3) Section 9 (Proceedings at hearings)—

(a) Section 9 (1) (d)—

Omit "and".

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Amendment 1986

SCHEDULE 2—continued

MISCELLANEOUS AMENDMENTS TO THE PRINCIPAL ACT—

continued

(b) Section 9 (1) (e), (f)—

Omit section 9(1) (e), insert instead:

(e)	except in the case of a hearing before a Division of the Commission—the provisions of section 20 of the Commission Act (other than subsections (3A) and (3B)) apply, so far as they are capable of application, as if the hearing were a meeting of the Commission; and
(f)	in the case of a hearing before a Division of the Commission—the provisions of section 20 of the Commission Act (other than subsections (3A) and (3B)) and of section 21 of that Act (other than subsections (4A) and

(4B)) apply, so far as they are capable of application, as if

the hearing were a meeting of that Division.

(4) Section 12 (Delegation by Commission)—

(a) Section 12 (1A)—

After section 12 (1), insert:

(1A) Without limiting the generality of subsection (1), the Commission may, either generally or as otherwise provided by the instrument of delegation, by writing under its common seal, delegate to a member or acting member all or any powers of the Commission under section 7, 8, 9 or 10.

(b) Section 12 (6A)—

After section 12 (6), insert: 

(6A) Any act or thing done in the exercise of a power by a person to whom that power has been delegated by the Commission under subsection (1A) shall be deemed to have been done by the Commission.

(c) Section 12 (7), (8), (13)—

After "subsection (1)" wherever occurring, insert "or (1A)".

National Companies and Securities Commission (State Provisions)

Amendment 1986

SCHEDULE 2—continued

MISCELLANEOUS AMENDMENTS TO THE PRINCIPAL ACT—

continued

(d) Section 12 (13) (a)—

After "section 9(1) (e)", insert "and (0".