Securities Industry Regulations (Cth)
SECURITIES INDUSTRY REGULATIONS
(#DATE 30:09:1996)
(#DATE 30:09:1996)
- In force under the Securities Industry Act 1980
Table of Statutory Rules
Year and Date of Date of Application
Number Notification commencement saving or
in Gazette transitional
provisions
1981 No. 127(a) 12 June 1981 1 July 1981
1982 No. 124(b) 16 June 1982 1 July 1982 -
125(b) 16 June 1982 16 June 1982 -
1983 No. 108(b) 22 July 1983 22 July 1983 -
303 16 Dec 1983 1 Jan 1984 -
1986 No. 35 21 Mar 1986 31 Mar 1986 -
148 20 June 1986 1 July 1986 -
1987 No. 48 31 Mar 1987 31 Mar 1987 -
129 25 June 1987 1 July 1987 -
173 31 Aug 1987 1 Sept 1987 -
1988 No. 263 4 Nov 1988 4 Nov 1988 -
264 4 Nov 1988 4 Nov 1988 -
1989 No. 294 31 Oct 1989 1 Nov 1989 (see -
Gazette 1989,
No. S345)
369 21 Dec 1989 21 Dec 1989 -
1990 No. 138 25 June 1990 25 June 1990 -
351 16 Nov 1990 16 Nov 1990 -
(a) The form of introductory words used to make Statutory Rules 1981 No. 127 was as follows:
"WHEREAS it is provided by subsection (5) of section 150 of the Securities Industry Act 1980 that the power of the Governor-General to make regulations under that Act shall be exercised only in accordance with advice that is consistent with resolutions of the Ministerial Council for Companies and Securities established under the agreement made on 22 December 1978 between the Commonwealth and the States:
"AND WHEREAS it is provided by section 16A of the Acts Interpretation Act 1901 that a reference in an Act to the Governor-General is, unless the contrary intention appears, to be deemed to include the person for the time being administering the Government of the Commonwealth of Australia and is, unless the contrary intention appears, to be read as referring to that person acting with the advice of the Federal Executive Council:
"AND WHEREAS the making of the following Regulations is in accordance with advice that is consistent with those resolutions:
"NOW THEREFORE I, the Administrator of the Government of the Commonwealth of Australia, acting with the advice of the Federal Executive Council and in pursuance of section 4 of the Acts Interpretation Act 1901, hereby make the following Regulations under the Securities Industry Act 1980."
(b) The form of introductory words used to make Statutory Rules 1983 No. 108 was as follows:
"WHEREAS it is provided by subsection 150 (5) of the Securities Industry Act 1980 that the power of the Governor-General to make regulations under that Act shall be exercised only in accordance with advice that is consistent with resolutions of the Ministerial Council for Companies and Securities:
"AND WHEREAS the making of the following Regulation is in accordance with advice that is consistent with those resolutions:
"NOW THEREFORE I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the Securities Industry Act 1980."
The form of introductory words used to make Statutory Rules 1982 Nos. 124 and 125 was similar to the form set out above.
Table of Amendments
ad=added or inserted am=amended rep=repealed rs=repealed and substituted
Provision affected How affected
R. 2 am. 1988 No. 263; 1989 Nos. 294 and 369
R. 4A ad. 1989 No. 294
R. 5A ad. 1987 No. 173
R. 5B ad. 1990 No. 138
am. 1990 No. 351
R. 6 am. 1982 Nos. 124 and 125; 1986 Nos. 35
and 148
R. 12 rep. 1986 No. 35
R. 15 rep. 1989 No. 294
R. 16 am. 1986 No. 35; 1989 No. 294
R. 17 rep. 1989 No. 294
R. 17A ad. 1983 No. 303
R. 18 am. 1983 No. 303
R. 19A ad. 1986 No. 35
rs. 1989 No. 369
R. 19B ad. 1986 No. 35
rep. 1989 No. 369
R. 24 rs. 1989 No. 294
Rr. 24A-24C ad. 1989 No. 369
R. 25 rs. 1989 No. 294
R. 25A ad. 1989 No. 369
R. 26 am. 1982 No. 124; 1989 No. 294
R. 27 am. 1982 No. 124
R. 27A ad. 1989 No. 369
R. 28 am. 1986 No. 35
R. 29 am. 1982 No. 124
R. 30 am. 1986 No. 35
R. 31 am. 1987 No. 129
R. 34 am. 1987 No. 129
R. 35 am. 1982 No. 124
R. 35A ad. 1982 No. 124
R. 36 rep. 1987 No. 129
R. 42 am. 1989 Nos. 294 and 369
Rr. 45A-45D ad. 1988 No. 264
R. 46 am. 1982 No. 124
R. 46A ad. 1987 No. 48
R. 47 am. 1982 No. 124
R. 49 ad. 1983 No. 303
R. 50 ad. 1986 No. 35
Schedule 1 am. 1982 Nos. 124 and 125; 1983 Nos. 108
and 303; 1986 No. 35; 1987 No. 129; 1988
No. 264; 1989 No. 369
Form 1 1981 No. 127
rs. 1983 No. 108
Form 2 1981 No. 127
am. 1982 No. 125
Form 3 1981 No. 127
rep. 1986 No. 35
Form 4 1981 No. 127
am. 1986 No. 35
rs. 1989 No. 369
Form 5 1981 No. 127
am. 1982 No. 124; 1986 No. 35
rs. 1989 No. 369
Form 6 1981 No. 127
am. 1986 No. 35
rep. 1989 No. 369
Form 7 1981 No. 127
rep. 1989 No. 369
Form 8 1981 No. 127
Form 9 1981 No. 127
am. 1982 No. 125; 1986 No. 35
rs. 1989 No. 369
Form 10 1981 No. 127
am. 1986 No. 35
rs. 1989 No. 369
Form 11 1981 No. 127
am. 1982 Nos. 124 and 125; 1986 No. 35
rs. 1989 No. 369
Form 12 1981 No. 127
rs. 1989 No. 369
Forms 12A, 12B ad. 1989 No. 369
Form 13 1981 No. 127
Form 13A ad. 1982 No. 124
Form 14 1981 No. 127
rep. 1987 No. 129
Form 15 1981 No. 127
am. 1986 No. 35
Forms 16-18 1981 No. 127
Form 19 1981 No. 127
rs. 1989 No. 369
Forms 20-22 1981 No. 127
am. 1986 No. 35
Form 23 ad. 1983 No. 303
Forms 24-26 ad. 1988 No. 264
Schedule 3 ad. 1983 No. 303
SECURITIES INDUSTRY REGULATIONS - TABLE OF PROVISIONS TABLE
TABLE OF PROVISIONS
Regulation
1. Citation
2. Interpretation
3. Compliance with forms
4. Directions and instructions to be followed
4A. Annexures accompanying forms
5. General requirements for documents
5A. Prescribed interests: exemption of franchise rights or
interests
5B. Option contract: prescribed indexes
6. Prescribed offices under section 5 of the Act
7. Evidence of authority under subsection 8 (2) of the Act
8. Notice under subsection 12 (3D) of the Act
9. Notice under subsection 19 (1) of the Act
10. Allowances and expenses payable to persons being
examined
11. Record of examination
13. Application by a natural person for dealers or
investment advisers licence
14. Application by a corporation for dealers or investment
advisers licence
16. Application for licence to be enclosed in sealed
envelope
17A. Prescribed amount for the purposes of paragraph
51 (2) (d)
18. Conditions to which licence is subject
19. Return of security in certain circumstances
19A. Conditions to which licences are subject
20. Particulars to be entered in Register of Licence Holders
21. Notification of change in registered particulars
22. Annual statement by a dealer or investment adviser who
is a natural person
23. Annual statement by a dealer or investment adviser that
is a corporation
24. Register of holders of proper authorities: prescribed
information
24A. Form of notice under subsection 60F (2) or (3) of the
Act
24B. Form of notice under subsection 60F (4) or (6) of the
Act
24C. Form of notice under subsection 60F (5) of the Act
25. Amount payable for copy of a register
25A. Licensees to notify Commission of location and contents
of registers
26. Exemption from licensing etc.
27. Sale of forfeited shares exempt
27A. Life offices: exemption from Part VI of the Act
28. Exempt dealer
29. Exemption of certain securities
30. Transactions in prescribed circumstances
31. Exempted transaction
32. Form of document to be issued to client
33. Exemption of sale of exchange traded options
34. Exemption of short sale covered by exchange traded
options
35. Dealer's trust accounts - exempt
35A. Return of members of firm of auditors
37. Dealer, who is a natural person, to lodge accounts etc.
38. Dealer, that is a corporation, to lodge accounts etc.
39. Auditor's report
40. Register of interests in securities
41. Entry of particulars in Register
42. Notice under subsection 90 (2) or (3) of the Act
43. Notice of appeal
44. Notice calling for claims against fund
45. Notice of disallowance of claim
45A. Prescribed information for purposes of section 122GE of
the Act
45B. Notice calling for claims against Corporation
45C. Prescribed rate of interest - subsection 122YC (2) of
the Act
45D. Notice of disallowance of claim against Corporation
46. Prohibition of dealings in securities by insiders
46A. Exemption from subsection 131 (1) of the Act
47. Dealings by employees of holders of licences
48. Period for which documents are to be retained
49. Prescribed offences and penalties
50. Futures contracts
SCHEDULE 1
FORMS
SCHEDULE 2
WITNESSES' FEES AND TRAVELLING EXPENSES
SCHEDULE 3
PRESCRIBED OFFENCES - PROVISIONS AND PENALTIES
SECURITIES INDUSTRY REGULATIONS - REG 1
Citation
1. These Regulations may be cited as the Securities Industry Regulations.*1* SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .
SECURITIES INDUSTRY REGULATIONS - REG 2
Interpretation
2. In these Regulations, unless the contrary intention appears:
"bank" means a bank as defined in section 5 of the Banking Act 1959 of the Commonwealth or a bank constituted under a law of a State or Territory;
"corporation" means any body corporate, whether formed or incorporated within or outside the Territory;
"franchise" means a contract, agreement or arrangement, whether express or implied, oral or written, between 2 or more persons by which:
(a) a party to the contract, agreement or arrangement (in this definition referred to as "the franchisor") authorises or permits another party (in this definition referred to as "the franchisee"), or a person associated with the franchisee, to exercise the right to engage in the business of offering, selling or distributing goods or services in Australia, or in an external Territory of Australia, under a marketing plan or system controlled by the franchisor or a person associated with the franchisor;
(b) the business carried on by the franchisee or the person associated with the franchisee, as the case may be, is, or is capable of being, identified by the public as being substantially associated with a mark identifying, commonly connected with or controlled by the franchisor or a person associated with the franchisor;
(c) the franchisor exerts, or has authority to exert, a significant degree of control over that business, including, but not limited to, control over the organisation, promotional activities, management, marketing plan or the affairs of that business; and
(d) it may reasonably be expected that, in carrying on that business, the franchisee or a person associated with the franchisee is, or will be, substantially dependent on goods or services supplied by the franchisor or a person associated with the franchisor;
"life office" means a body corporate registered under the Life Insurance Act 1945;
"mark" includes a symbol, design, colour, device, brand, heading, label, ticket, name, signature, word, letter or numeral or any combination of 2 or more of these;
"superannuation scheme" means a complying superannuation fund within the meaning of section 267 of the Income Tax Assessment Act 1936;
"the Act" means the Securities Industry Act 1980;
"trustee" in relation to a superannuation scheme includes a person responsible for the administration and management of the scheme.
SECURITIES INDUSTRY REGULATIONS - REG 3
Compliance with forms
3. Strict compliance with the forms in Schedule 1 is not necessary and substantial compliance, or such compliance as the particular circumstances allow, is sufficient.
SECURITIES INDUSTRY REGULATIONS - REG 4
Directions and instructions to be followed
4. (1) A form in Schedule 1 shall be completed in accordance with such directions and instructions as are specified in the form.
(2) In these Regulations a reference to a form by number is a reference to the form in Schedule 1 which bears that number.
SECURITIES INDUSTRY REGULATIONS - REG 4A
Annexures accompanying forms
4A. (1) In this Regulation, "annexure" includes a document that is with or attached to a form.
(2) An annexure to a form must:
(a) have an identifying mark; and
(b) be endorsed with the words:
"This is the annexure of (insert the number of pages) pages marked (insert an identifying mark) referred to in the (insert a description of the form) signed by (insert 'me' or 'us') and dated (insert the date of signing)"; and
(c) be signed by each person signing the form to which the document is annexed.
(3) The pages in an annexure must be numbered consecutively.
(4) Where a form has a document annexed, the following particulars of the annexure must be written on the form:
(a) the identifying mark; and
(b) the number of pages; and
(c) a brief description of its nature and contents.
SECURITIES INDUSTRY REGULATIONS - REG 5
General requirements for documents
5. The Commission may refuse to receive a document for filing or lodging under the Act or these Regulations unless:
(a) the document is legibly and clearly printed, typewritten or hand-written:
(i) in ink of a type to provide a satisfactory
reproduction; and
(ii) on paper of medium weight, of good quality and of
foolscap folio size or international sheet size A4;
(b) the document has margins of not less than 25 millimetres on the left hand side and not less than 13 millimetres on the right hand side;
(c) in the case of a document comprising two or more sheets:
(i) the sheets are bound together securely; and
(ii) each sheet has a margin of not less than 25
millimetres on the side on which it is bound in addition to any space required for binding; and
(d) the document has endorsed on it the name, address and telephone number of the person by whom or on whose behalf it is filed or lodged, or of the person acting on behalf of such a person.
SECURITIES INDUSTRY REGULATIONS - REG 5A
Prescribed interests: exemption of franchise rights or interests
5A. For the purposes of the definition of "prescribed interest" in subsection 4 (1) of the Act, any right to participate, or any interest, as franchisee in a franchise is declared to be an exempt right or interest.
SECURITIES INDUSTRY REGULATIONS - REG 5B
Option contract: prescribed indexes
5B. For the purposes of subsection 4 (8A) of the Act, each of the following indexes is prescribed:
(a) the Nikkei Index;
(b) the S & P 500 Composite Stock Price Index;
(c) the FT-SE 100 Index;
(d) the Australian Stock Exchange Fifty Leaders Share Price Index;
(e) the Australian Stock Exchange Twenty Leaders Share Price Index.
SECURITIES INDUSTRY REGULATIONS - REG 6
Prescribed offices under section 5 of the Act
6.
(3) For the purposes of paragraph 5 (8) (b) of the Act, each of the following offices is prescribed:
(a) the office of Treasurer of the Commonwealth;
(b) the office of the trustee under, or continued under, Parts IV, X and XI of the Bankruptcy Act 1966 of the Commonwealth;
(c) the office of Controller of Enemy Property under the National Security (Enemy Property) Regulations of the Commonwealth;
(d) the office of Treasurer of the State of Western Australia;
(e) the office of Commissioner for Corporate Affairs for the State of Western Australia;
(f) the office of Public Trustee under the Public Trustee Act 1941 of the State of Western Australia;
(g) the office of Master and the office of Registrar of the Supreme Court, within the meaning of the Supreme Court Act 1935 of the State of Western Australia;
(h) the office of Treasurer of the State of Victoria;
(i) the office of Commissioner for Corporate Affairs for the State of Victoria;
(j) the office of Public Trustee under the Public Trustee Act 1958 of the State of Victoria;
(k) the office of Master of the Supreme Court of Victoria within the meaning of the Supreme Court Act 1958 of the State of Victoria;
(l) the office of Treasurer of the State of New South Wales;
(m) the office of Public Trustee under the Public Trustee Act, 1913, of the State of New South Wales;
(n) the office of Master under Division 1 of Part VIII of the Supreme Court Act, 1970, of the State of New South Wales;
(o) the office of Supervisor of Loan Fund Companies under the Loan Fund Companies Act, 1976, of the State of New South Wales;
(p) the office of Protective Commissioner under the Mental Health Act, 1958, of the State of New South Wales;
(q) the office of Treasurer of the State of Queensland;
(r) the office of Commissioner for Corporate Affairs for the State of Queensland;
(s) the office of Public Trustee under the Public Trustee Act 1978 of the State of Queensland;
(t) the office of Registrar under the Supreme Court Acts 1861-1980 of the State of Queensland;
(u) the office of Treasurer of the State of South Australia;
(v) the office of Curator of Prisoners Property under the Criminal Law Consolidation Act 1935-1980 of the State of South Australia;
(w) the office of Public Trustee under the Administration and Probate Act 1919-1980 of the State of South Australia;
(x) the office of Master or accountant under the Supreme Court Act 1935-1980 of the State of South Australia;
(y) the office of administrator under Chapter XLIX of the Criminal Code of the State of Tasmania;
(z) the office of Treasurer of the State of Tasmania;
(za) the office of Commissioner for Corporate Affairs for the State of Tasmania;
(zb) the office of Public Trustee under the Public Trustee Office Act 1930 of the State of Tasmania;
(zc) the office of Registrar of the Supreme Court under the Supreme Court Act 1959 of the State of Tasmania;
(zd) the office of the Public Trustee under the Administration and Probate Ordinance 1929 and the Public Trustee Ordinance 1985 of the Australian Capital Territory;
(ze) the office of Registrar of the Supreme Court under the Australian Capital Territory Supreme Court Act 1933 of the Commonwealth;
(zf) the office of Treasurer of the Northern Territory;
(zg) the office of the Public Trustee for the Northern Territory under the Public Trustee Act 1979 of the Northern Territory;
(zh) the office of the Master of the Supreme Court of the Northern Territory;
(zi) the office of the Commissioner for Corporate Affairs under section 4 of the Companies (Administration) Act 1986 of the Northern Territory.
SECURITIES INDUSTRY REGULATIONS - REG 7
Evidence of authority under subsection 8 (2) of the Act
7. Where a person produces a document that is issued by the Commission and that document states that the person may require the production of books in accordance with paragraph 8 (2) (a) or 8 (2) (b), as the case may be, of the Act, that document shall be evidence of the person's authority to require the production of books in accordance with the paragraph specified in that document.
SECURITIES INDUSTRY REGULATIONS - REG 8
Notice under subsection 12 (3D) of the Act
8. A notice under subsection 12 (3D) of the Act shall be in accordance with Form 1.
SECURITIES INDUSTRY REGULATIONS - REG 9
Notice under subsection 19 (1) of the Act
9. (1) A notice under subsection 19 (1) of the Act shall be in accordance with Form 2.
(2) A notice under subsection 19 (1) of the Act shall be given by:
(a) delivering a copy of the notice to the prescribed person personally;
(b) sending the notice by pre-paid post addressed to the prescribed person at his usual or last known place of residence or business; or
(c) leaving a copy of the notice at the last known place of residence or business of the prescribed person with a person apparently resident or employed at that place and apparently over the age of 16 years.
SECURITIES INDUSTRY REGULATIONS - REG 10
Allowances and expenses payable to persons being examined
10. For the purposes of subsection 19 (11) of the Act, the allowances and expenses to which a person who attends at an examination under section 19 of the Act is entitled are such allowances as the inspector allows in accordance with the scale in Schedule 2 to these Regulations.
SECURITIES INDUSTRY REGULATIONS - REG 11
Record of examination
11. Where a record of the questions asked or answers given at an examination under Division 2 of Part II of the Act is in writing the record may be authenticated:
(a) by the person or persons who prepared the record of examination, or under whose supervision the record was prepared, certifying in writing under that person's hand that the record is a true transcript of the record of examination; or
(b) by any person present at the examination, or any part of the examination, signing his name at the bottom of each page of the written record which records a part of the examination at which that person was present.
SECURITIES INDUSTRY REGULATIONS - REG 13
Application by a natural person for dealers or investment advisers licence
13. An application to the Commission by a natural person for a dealers licence or an investment advisers licence shall be in accordance with Form 4.
SECURITIES INDUSTRY REGULATIONS - REG 14
Application by a corporation for dealers or investment advisers licence
14. An application to the Commission by a corporation for a dealers licence or an investment advisers licence shall be in accordance with Form 5.
SECURITIES INDUSTRY REGULATIONS - REG 16
Application for licence to be enclosed in sealed envelope
16. Where an applicant lodges with the Commission an application under regulation 13 or 14, the application shall be enclosed in a sealed envelope on which there are clearly marked:
(a) words indicating the nature of the application; and
(b) the name, address and telephone number of the applicant.
SECURITIES INDUSTRY REGULATIONS - REG 17A
Prescribed amount for the purposes of paragraph 51 (2) (d)
17A. For the purposes of paragraph 51 (2) (d) of the Act, the prescribed amount is $20,000.
SECURITIES INDUSTRY REGULATIONS - REG 18
Conditions to which licence is subject
18. (1) For the purposes of section 51 of the Act, a licence is granted subject to a condition that the holder of the licence shall immediately notify the local authority in writing of any matter that may adversely affect the financial position of the holder of the licence.
(2) Where, in accordance with section 51 of the Act, a licence is subject to a condition that the holder of the licence lodges with the local authority a security approved by the Commission for an amount not exceeding the amount prescribed for the purposes of paragraph 51 (2) (d) of the Act, the whole or part of which is payable to the local authority in certain circumstances, the licence is also subject to a condition that that amount be applied in accordance with subregulation (5) for the purposes of compensating a person who has suffered pecuniary loss and whose claim is allowed in accordance with subregulation (4).
(3) A person referred to in subregulation (2) shall be deemed to have suffered pecuniary loss if the loss was suffered from defalcation or fraudulent misuse of securities or documents of title to securities or of other property committed after the commencement of these Regulations by the holder of the licence or by an employee or servant of the holder in relation to money or other property which, whether before or after the commencement of these Regulations, in the course of or in connection with the business of dealing in securities or advising other persons concerning securities carried on by the holder of the licence:
(a) was entrusted to or received by the holder for or on behalf of any person; or
(b) where the holder of the licence was the sole trustee or a trustee with another person in respect of the money or other property: was entrusted to, or received by, the holder, or an employee or servant of the holder, as trustee, or for or on behalf of the trustees, of the money or property;
whether or not the person who committed the defalcation or fraudulent misuse of securities or documents of title to securities or of other property has been convicted of an offence in respect of the defalcation or fraudulent misuse.
(4) For the purposes of subregulation (2), a claim shall be allowed where:
(a) the claim is made in writing given to the local authority not later than:
(i) a date specified by the local authority, being not
earlier than 3 months after the local authority seeks claims, in respect of the defalcation or fraudulent misuse, by notice published in a newspaper circulating generally in the Territory and, if the local authority so requires, in a newspaper circulating generally in a State or Territory where the holder of the licence carried on business to which the licence relates;
(ii) where no such notice is published - 6 months after the
person became aware of the defalcation or fraudulent misuse; or
(iii) such later date as the local authority in a
particular case allows; and
(b) the local authority is satisfied that the claim is a proper claim.
(5) For the purposes of subregulation (2), an amount that is paid to the local authority shall be applied by the local authority:
(a) where the amounts of the claims that are allowed do not in the aggregate exceed the amount paid to the local authority - in the payment of those claims in full; or
(b) where the amounts of the claims that are allowed exceed in the aggregate the amount paid to the local authority - in the payment of part of each of such claims being the part that bears to the total amount of the claim the same proportion as the amount paid to the local authority bears to the aggregate amount of those claims.
(6) In this regulation "pecuniary loss" in relation to a claim of a person for compensation means the amount of the pecuniary loss suffered by that person (together with the reasonable costs of and disbursements incidental to the making and proof of the claim) less the amount or value of all moneys or other benefits paid or payable to him by a person other than the local authority in reduction of that loss.
SECURITIES INDUSTRY REGULATIONS - REG 19
Return of security in certain circumstances
19. (1) Subject to subregulation (2), where, in accordance with a condition to which a licence is subject, a security has been lodged with the local authority by the person to whom the licence is issued or by or on behalf of that person and:
(a) the person by whom or on whose behalf the security was so lodged ceases to be the holder of the licence;
(b) the licence of which he is the holder ceases to be subject to the condition that a security be lodged; or
(c) the person who is the holder of a licence ceases to conduct a substantial part of the business to which the licence relates;
the local authority may, on the application of the holder of the licence or any person who is the obligor under the security or by whom or on whose behalf the security was given:
(d) discharge the security wholly or in part;
(e) release any security wholly or in part;
(f) return wholly or in part any money or other property lodged as security; or
(g) release any surety wholly or in part.
(2) The local authority shall not exercise any power pursuant to subregulation (1) until 3 months after the date on which a notice in accordance with Form 8 is published:
(a) in a newspaper circulating generally in the Territory; and
(b) if the local authority so requires, in a newspaper circulating generally in a State or Territory where the holder of the licence carried on business to which the licence relates;
asking for particulars in writing of any claim in respect of the security to which the application relates and specifying a date on or before which such claims are to be made.
(3) Publication of a notice referred to in subregulation (2) shall be arranged by, and effected at the expense of, the person making the application to the local authority.
SECURITIES INDUSTRY REGULATIONS - REG 19A
Conditions to which licences are subject
19A. (1) For the purposes of section 51 of the Act, a licence is subject to the conditions that the holder of the licence must ensure that each representative of the holder:
(a) is adequately supervised in the performance of the duties that he or she is required by the holder to perform; and
(b) is sufficiently trained in relation to those duties before acting as a representative; and
(c) keeps up to date in relation to those duties by means of continuing training programs.
(2) The Commission may, by notice in writing, require a holder of a licence to satisfy it that the conditions referred to in subregulation (1) have been met by the holder.
SECURITIES INDUSTRY REGULATIONS - REG 20
Particulars to be entered in Register of Licence Holders
20. For the purposes of subsection 54 (5) of the Act, the following matters are prescribed:
(a) particulars of the type of licence;
(b) the name of the State or Territory in which the licence was granted;
(c) the address of the principal place of business of the licence holder; and
(d) the name or style under which the business is carried on.
SECURITIES INDUSTRY REGULATIONS - REG 21
Notification of change in registered particulars
21. For the purposes of section 55 of the Act, a notice, giving particulars of an event referred to in that section, shall be in accordance with Form 9.
SECURITIES INDUSTRY REGULATIONS - REG 22
Annual statement by a dealer or investment adviser who is a natural person
22. For the purposes of subsection 56 (1) of the Act, the statement, required to be lodged with the Commission by a person (other than a corporation) who is or has been the holder of a dealers licence or investment advisers licence, shall be in accordance with Form 10.
SECURITIES INDUSTRY REGULATIONS - REG 23
Annual statement by a dealer or investment adviser that is a corporation
23. For the purposes of subsection 56 (1) of the Act, the statement, required to be lodged with the Commission by a corporation that is or has been the holder of a dealers licence or an investment advisers licence, shall be in accordance with Form 11.
SECURITIES INDUSTRY REGULATIONS - REG 24
Register of holders of proper authorities: prescribed information
24. For the purposes of paragraph 60E (3) (e) of the Act, the date of birth of each person who holds a proper authority from the licensee is prescribed information.
SECURITIES INDUSTRY REGULATIONS - REG 24A
Form of notice under subsection 60F (2) or (3) of the Act
24A. A notice under subsection 60F (2) or (3) of the Act must be in accordance with Form 12.
SECURITIES INDUSTRY REGULATIONS - REG 24B
Form of notice under subsection 60F (4) or (6) of the Act
24B. A notice under subsection 60F (4) or (6) of the Act must be in accordance with Form 12A.
SECURITIES INDUSTRY REGULATIONS - REG 24C
Form of notice under subsection 60F (5) of the Act
24C. A notice under subsection 60F (5) of the Act must be in accordance with Form 12B.
SECURITIES INDUSTRY REGULATIONS - REG 25
Amount payable for copy of a register
25. For the purposes of subsection 60G (3) of the Act, the prescribed amount is:
(a) for each page, or part of a page, not exceeding foolscap folio size, of the copy given - $0.50; or
(b) if required by the licensee - for each 100 words, or part, of the copy given - $0.50.
SECURITIES INDUSTRY REGULATIONS - REG 25A
Licensees to notify Commission of location and contents of registers
25A. Subsections 60E (4), (5) and (6) and 60F (4), (5) and (6) of the Act do not have effect in relation to a person:
(a) of a kind referred to in subparagraph 150 (2) (a) (i) of the Act; and
(b) who has established a register under section 60E of the Act of more than 100 persons;
if that person complies with the requirements of each of those subsections within 12 business days after the beginning of the period referred to in each respective subsection.
SECURITIES INDUSTRY REGULATIONS - REG 26
Exemption from licensing etc.
26. (1) Parts IV, VI and VII and section 64 of the Act do not have effect in relation to:
(a) the acquisition or disposal of, or an agreement to acquire or dispose of, securities or documents of title to securities; or
(b) a mortgage or charge in respect of securities or documents of title to securities;
effected or entered into by a person whose ordinary business includes the lending of money and effected or entered into principally by way of security for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money or the provision of credit.
(2) Parts IV, VI and VII and section 64 of the Act do not have effect in relation to a person with respect to a dealing in or with a prescribed interest as defined in subsection 5 (1) of the Companies Act 1981, being a prescribed interest in relation to which there was not, and was not required to be, in force an approved deed within the meaning of section 165 of the Companies Act 1981.
(3) Subject to subregulation (4), Parts IV, VI and VII and section 64 of the Act do not have effect in relation to:
(a) a dealing entered into between a person and a government, local government authority or a body corporate or unincorporate in securities of that government, authority or body; or
(b) a transaction entered into by a sub-underwriter of an issue of securities that relates only to the sub-underwriting of the issue.
(4) Paragraph (3) (a) does not have effect in relation to a dealing entered into between a person and an investment company in securities of that investment company.
(5) In subregulation (4) "investment company" means a body corporate or unincorporate that carries on a business of investment in securities or interests in land or both (whether by acquisition and disposal or otherwise), the funds invested being funds subscribed directly or indirectly following an offer to the public, or an invitation to the public, (within the meaning of subsection 5 (4) of the Companies Act 1981) on terms that the funds subscribed would be so invested.
(6) Part VII of the Act does not have effect in relation to a corporation in respect of prescribed interests made available by that corporation in accordance with the provisions of Division 6 of Part IV of the Companies Act 1981.
(7) Parts IV, VI and VII of the Act do not have effect in relation to a dealer who is a trustee for a superannuation scheme and deals in securities only in relation to the management and administration of the superannuation scheme.
(8) Section 60A and Part VII of the Act do not have effect in relation to a person employed by, or acting for or by arrangement with, a dealer referred to in subregulation (7) by reason only that he is so employed or so acts in respect of any act to which, if done by that dealer, subregulation (7) would apply.
(9) Parts VI and VII and sections 43 and 64 of the Act do not have effect in relation to a bank by reason only that, in relation to the carrying on of the business of banking, the bank:
(a) deals in securities issued or proposed to be issued by a government, a local government authority or a public authority; or
(b) accepts appointment as, or acts as, banker in respect of an issue of securities.
(10) Section 60A and Part VII of the Act do not have effect in relation to a person employed by a bank that deals in securities only in relation to the carrying on the business of banking by reason only that the person does an act on behalf of the bank in relation to:
(a) a dealing by the bank in securities issued or proposed to be issued by a government, local government authority or public authority; or
(b) the appointment of the bank as a banker in respect of an issue of securities.
SECURITIES INDUSTRY REGULATIONS - REG 27
Sale of forfeited shares exempt
27. Parts IV, VI, VII and section 64 of the Act do not have effect in relation to a transaction of sale or purchase of any share in a no liability company that is offered for sale by public auction under section 479 of the Companies Act 1981 by a person who is the holder of a licence under a law relating to the licensing of auctioneers.
SECURITIES INDUSTRY REGULATIONS - REG 27A
Life offices: exemption from Part VI of the Act
27A. Part VI of the Act does not have effect in relation to a life office that only deals in securities in relation to the carrying on of the life insurance business.
SECURITIES INDUSTRY REGULATIONS - REG 28
Exempt dealer
28. Section 64 of the Act does not have effect in relation to a transaction of sale or purchase of securities effected by a dealer as agent for another person through a member of a securities exchange in Australia if the dealer forthwith gives to the other person the contract note, or a copy of the contract note, given by the member under that section or a corresponding provision of a law of a State or Territory.
SECURITIES INDUSTRY REGULATIONS - REG 29
Exemption of certain securities
29. Sections 64, 66 and 67 of the Act do not have effect in relation to the sale or purchase of securities or prescribed interests by a corporation by which the securities or prescribed interests were made available in accordance with the provisions of Division 1 or Division 6, as the case may be, of Part IV of the Companies Act 1981.
SECURITIES INDUSTRY REGULATIONS - REG 30
Transactions in prescribed circumstances
30. For the purposes of subsection 64 (5) of the Act, a transaction takes place in prescribed circumstances if the transaction takes place on the trading floor at an official meeting of a securities exchange in Australia between persons who are members of a securities exchange in Australia.
SECURITIES INDUSTRY REGULATIONS - REG 31
Exempted transaction
31. (1) Section 66 of the Act does not apply in relation to a transaction entered into by a dealer with a registered trader for the acquisition or disposal of an option, where:
(a) the registered trader is a person associated with the dealer by reason only that the dealer is that registered trader's clearing member and the transaction is cleared by the registered trader through the dealer in accordance with the provisions of the Stock Options Trading Regulations of Australian Stock Exchange (Sydney) Limited; and
(b) the registered trader is not employed by the dealer or by the firm in which the dealer is a partner.
(2) In subregulation (1), the terms "registered trader" and "clearing member" have the same meaning as in the Stock Options Trading Regulations of Australian Stock Exchange (Sydney) Limited, and the term "option" means an option taken or written in accordance with those Regulations.
SECURITIES INDUSTRY REGULATIONS - REG 32
Form of document to be issued to client
32. For the purposes of paragraph 67 (b) of the Act, the document to be furnished to a client shall be in accordance with Form 13.
SECURITIES INDUSTRY REGULATIONS - REG 33
Exemption of sale of exchange traded options
33. Section 68 of the Act does not have effect in relation to a sale of securities that is effected by the giving or writing of an option that is registered with Options Clearing House Proprietary Limited.
SECURITIES INDUSTRY REGULATIONS - REG 34
Exemption of short sale covered by exchange traded options
34. (1) In this regulation:
"exchange traded options" means options registered with Options Clearing House Proprietary Limited in accordance with the Stock Options Trading Regulations of Australian Stock Exchange (Sydney) Limited;
"vendor", where a sale is effected by an agent, means the principal.
(2) Subject to subregulations (3), (4) and (5), section 68 of the Act does not apply in relation to a sale of shares to which the vendor does not, at the time of the sale, have a presently exercisable and unconditional right to vest in the purchaser, if the vendor is, at the time of the sale, able to obtain, by exercising exchange traded options, shares equal in number to, and of the same class as, the total number of shares of that class sold by the vendor:
(a) in that sale; and
(b) in previous sales that have not been completed by the transfer of shares to the purchaser, being sales of shares to which, at the time of the sale referred to in paragraph (a), the vendor does not have a presently exercisable and unconditional right to vest in the purchaser.
(3) For the purposes of subregulation (2), where the vendor is, at the time of the sale, able to exercise, and have exercised against him, exchange traded options, the number of shares of the same class as those sold by the vendor which he is able to obtain by the exercise of exchange traded options shall be determined by subtracting from the number of shares of that class over which he can exercise exchange traded options the number of shares of that class over which he has given or written exchange traded options that have not expired or been exercised at that time.
(4) Subregulation (2) does not apply to a sale of shares, that would otherwise satisfy the requirements of that subregulation, if, were the vendor to exercise at the time of the sale the exchange traded options required to yield shares of the same class as, and equal in number to, the shares the subject of that sale:
(a) the total price that would be payable by the vendor pursuant to the exercise of those options would be greater than the total price that would be payable to him under that sale; and
(b) the vendor has not deposited with Options Clearing House Proprietary Limited, before and in relation to that sale, an amount not less than the difference between the two prices referred to in paragraph (a).
(5) For the purposes of paragraph (4) (a) the total price that would be payable by a vendor pursuant to the exercise of the required options shall be calculated by referring first to the option with the lowest exercise price, then to the option with the second lowest exercise price, and so on in ascending order of price until the necessary number of options would have been exercised.
SECURITIES INDUSTRY REGULATIONS - REG 35
Dealer's trust accounts - exempt
35. (1) Sections 67 and 73 of the Act do not have effect in relation to a dealing in securities carried on by a corporation to which this regulation applies, being a dealing which is carried on in the course of performing the principal functions of the corporation or incidentally to the performance of those functions.
(2) This regulation applies to a corporation that is a public company as defined in subsection 5 (1) of the Companies Act 1981 or of a law of a State or of a Territory corresponding to the Companies Act 1981 and has a paid-up capital of not less than $2,000,000, the principal functions of which include:
(a) underwriting issues of securities;
(b) advising and assisting corporations in relation to:
(i) the raising of capital;
(ii) corporate reconstructions and amalgamations; or
(iii) the acquisition of securities primarily for the
purpose of controlling another corporation or other corporations; or
(c) doing anything incidental to the management and administration of investments of clients where the amount of the investments managed or administered for each client is not less than $100,000.
SECURITIES INDUSTRY REGULATIONS - REG 35A
Return of members of firm of auditors
35A. For the purposes of paragraph 75 (3) (e) of the Act, the return to be lodged with the Commission shall be in accordance with Form 13A.
SECURITIES INDUSTRY REGULATIONS - REG 37
Dealer, who is a natural person, to lodge accounts etc.
37. For the purposes of subsection 78 (2) of the Act, a dealer who is a natural person shall prepare a true and fair profit and loss account and balance sheet in accordance with Form 15.
SECURITIES INDUSTRY REGULATIONS - REG 38
Dealer, that is a corporation, to lodge accounts etc.
38. For the purposes of subsection 78 (2) of the Act, a dealer that is a corporation shall prepare a true and fair profit and loss account and balance sheet in accordance with Form 16.
SECURITIES INDUSTRY REGULATIONS - REG 39
Auditor's report
39. (1) For the purposes of subsection 78 (2) of the Act, the auditor's report required to be lodged with the Commission in relation to a true and fair profit and loss account and balance sheet shall be in accordance with Form 17.
(2) For the purpose of preparing the auditor's report referred to in subregulation (1), the auditor shall conduct a check or test examination of:
(a) the internal procedures for recording transactions relating to securities;
(b) the internal procedures relating to securities held for sale and for safe custody;
(c) the balancing of scrip accounts; and
(d) the operation and control of trust account procedures;
and, in relation to any dealer who does not act only as a principal:
(e) securities on hand and outstanding transactions, including confirmation from clients or other persons holding scrip;
(f) the clients' ledger, including the reconciliation of the trust account, the market value of security held for unpaid accounts and the incidence of doubtful debts; and
(g) broker's agents and such other ledgers or records as the auditor considers it necessary to examine.
SECURITIES INDUSTRY REGULATIONS - REG 40
Register of interests in securities
40. (1) A register required to be maintained under subsection 89 (1) of the Act shall be maintained:
(a) in accordance with Form 18; or
(b) in a manner that enables the particulars required to be disclosed by Form 18 to be readily ascertained.
(2) Where the person who maintains the Register is the holder of a licence who carries on business in partnership with another person, the Register shall contain particulars of the securities in which the partnership has an interest.
SECURITIES INDUSTRY REGULATIONS - REG 41
Entry of particulars in Register
41. For the purposes of subsections 89 (2) and (3) of the Act, particulars of securities shall be entered in the Register in handwriting in ink of a type to provide a satisfactory reproduction, or in typewriting of a type to provide a satisfactory reproduction.
SECURITIES INDUSTRY REGULATIONS - REG 42
Notice under subsection 90 (2) or (3) of the Act
42. A notice under subsection 90 (2) or (3) or section 90A of the Act shall be in accordance with Form 19.
SECURITIES INDUSTRY REGULATIONS - REG 43
Notice of appeal
43. A notice of appeal under subsection 113 (2) of the Act shall be in accordance with Form 20.
SECURITIES INDUSTRY REGULATIONS - REG 44
Notice calling for claims against fund
44. A notice under section 114 of the Act shall be in accordance with Form 21.
SECURITIES INDUSTRY REGULATIONS - REG 45
Notice of disallowance of claim
45. A notice of disallowance under subsection 115 (4) of the Act shall be in accordance with Form 22.
SECURITIES INDUSTRY REGULATIONS - REG 45A
Prescribed information for purposes of section 122GE of the Act
45A. For the purposes of section 122GE of the Act, the following information is prescribed, namely, information in accordance with Form 24.
SECURITIES INDUSTRY REGULATIONS - REG 45B
Notice calling for claims against Corporation
45B. The prescribed form of notice for the purposes of subsection 122X (1) of the Act is a notice in accordance with Form 25.
SECURITIES INDUSTRY REGULATIONS - REG 45C
Prescribed rate of interest - subsection 122YC (2) of the Act
45C. The prescribed rate of interest for the purposes of subsection 122YC (2) of the Act is a rate of 5% per annum.
SECURITIES INDUSTRY REGULATIONS - REG 45D
Notice of disallowance of claim against Corporation
45D. The prescribed form of notice for the purposes of section 122YF of the Act is a notice in accordance with Form 26.
SECURITIES INDUSTRY REGULATIONS - REG 46
Prohibition of dealings in securities by insiders
46. (1) Subsections 128 (1), (3) and (6) of the Act do not have effect in relation to:
(a) the obtaining by a director of a share qualification in accordance with subsection 221 (1) of the Companies Act 1981;
(b) the subscription for and acquisition pursuant to that subscription of securities of a corporation by, or by a trustee for, employees of the corporation, or of a corporation that is deemed to be related to the first-mentioned corporation by reason of subsection 7 (5) of the Companies Act 1981, under a superannuation scheme, pension fund or other scheme established solely or primarily for the benefit of such employees; or
(c) a transaction entered into by a person in accordance with his obligations under an underwriting agreement.
(2) Subsections 128 (1), (2), (3) and (6) of the Act do not apply to or in relation to:
(a) a personal representative of a deceased person, a liquidator or a person holding the office of the trustee under Parts IV, X and XI of the Bankruptcy Act 1966 of the Commonwealth in respect of any transaction entered into by him in good faith in the performance of the functions of his office as such a representative, liquidator or trustee;
(b) a transaction by way of, or arising out of, a mortgage or charge of securities or a mortgage, charge, pledge or lien of documents of title to securities;
(c) the acquisition of securities by a person under a will or on the intestacy of another person; or
(d) a dealing in securities which consists only of the transfer of the legal estate in those securities from one trustee to another trustee.
SECURITIES INDUSTRY REGULATIONS - REG 46A
Exemption from subsection 131 (1) of the Act
46A. For the purposes of paragraph 150 (2) (d) of the Act, subsection 131 (1) of the Act does not have effect in relation to transactions entered into by a member of a stock exchange in accordance with the business rules of that stock exchange.
SECURITIES INDUSTRY REGULATIONS - REG 47
Dealings by employees of holders of licences
47. Subsection 132 (4) of the Act does not have effect in relation to:
(a) a bank; or
(b) a corporation in so far as, in good faith, it gives credit to a person (not being a director of the corporation) in the employment of the corporation, or of another corporation that is deemed to be related to the first-mentioned corporation by reason of subsection 7 (5) of the Companies Act 1981, with a view to enabling that person to purchase fully paid shares in the corporation to be held by himself by way of beneficial ownership.
SECURITIES INDUSTRY REGULATIONS - REG 48
Period for which documents are to be retained
48. For the purposes of subsection 136 (4) of the Act, the prescribed period is 7 years.
SECURITIES INDUSTRY REGULATIONS - REG 49
Prescribed offences and penalties
49. (1) For the purposes of section 141A of the Act, a prescribed offence is an offence committed under or in relation to a provision of the Act, being a provision that is specified in Column 2 of Schedule 3.
(2) For the purposes of section 141A of the Act, the prescribed penalty in respect of a prescribed offence is the penalty specified in Column 3 of Schedule 3 opposite the provision specified in Column 2 under or in relation to which the offence has been committed.
SECURITIES INDUSTRY REGULATIONS - REG 50
Futures contracts
50. For the purposes of paragraph 150 (2) (ca) of the Act, the provisions of the Act do not have effect in relation to a transaction effected by virtue of a futures contract:
(a) that is effected on a market of the Sydney Futures Exchange Limited; and
(b) that relates only to securities.
SECURITIES INDUSTRY REGULATIONS - SCHEDULE 1 SCH
SCHEDULE 1
FORM 1 Regulation 8
Securities Industry Act 1980
NOTICE RELATING TO ADMISSIBILITY IN CRIMINAL PROCEEDINGS OF
INFORMATION THAT MIGHT TEND TO INCRIMINATE
Take notice that the terms of sub-sections 12 (3C) and 12 (3CA)
of the Securities Industry Act 1980 in relation to the
disclosure to the Commission of information that might tend to
incriminate are as follows:
(3C) A person is not excused from disclosing information to the
Commission pursuant to a requirement made of him under
sub-section (3A) on the ground that the disclosure of the
information might tend to incriminate him.
(3CA) Where a person claims, before making an oral statement
disclosing information that he is required to disclose by a
requirement made of him under sub-section (3A), that the
statement might tend to incriminate him, evidence of that
statement is not admissible in evidence against him in criminal
proceedings other than proceedings under this section.
Dated this day of 19
FORM 2 Regulation 9
Securities Industry Act 1980
NOTICE BY A PERSON UNDERTAKING AN INVESTIGATION OF MATTERS
CONCERNING DEALING IN SECURITIES
(1) To:
In relation to an investigation of (2)
TAKE NOTICE that under sub-section 19 (1) of the Securities
Industry Act 1980 you are hereby required -
(a) to appear on (3) 19 , at (4) , before (5) ,
at (6) , for examination on oath or affirmation and to
answer questions put to you in relation to the abovementioned
investigation;
(b) to produce to (5) on (3) 19 , at (4) , at
(6) the following books:
and all such other books in your custody or under your control
as relate to the abovementioned investigation; and
(c) to give to (5) all reasonable assistance in connection
with the abovementioned investigation.
Dated this day of 19 .
Signature of person carrying out investigation
(1) Name and address of the person to whom the notice is given
(2) State nature of the matter to which the investigation
relates
(3) Insert date
(4) Insert time
(5) Insert name of person carrying out investigation
(6) Insert full particulars of the place at which the
requirement is to be satisfied
DIRECTIONS
1. In relation to sub-sections 19 (1) and 19 (2) of the
Securities Industry Act 1980, your attention is drawn to
sub-sections 19 (4), 19 (8) and 19 (9) which provide, respectively
as follows:
"(4) A prescribed person shall not, without reasonable excuse,
refuse or fail to comply with a requirement of sub-section (1).
Penalty: $10,000 or imprisonment for 2 years, or both."
"(8) A duly qualified legal practitioner acting for a
prescribed person -
(a) may attend an examination of that person; and
(b) may, at such times during the examination as the inspector
determines -
(i) address the inspector; and
(ii) examine that person,
in relation to matters in respect of which the inspector has
questioned that person.
"(9) A prescribed person is not excused from answering a
question put to him by an inspector on the ground that the
answer might tend to incriminate him but, where that person
claims, before answering the question, that the answer might
tend to incriminate him, the answer is not admissable in
evidence against him in criminal proceedings other than
proceedings under this section or other proceedings in respect
of the falsity of the answer.".
2. Under Division 2 of Part II of the Securities Industry Act
1980 a "prescribed person" means a person suspected or believed
by an inspector, on reasonable grounds, to be capable of giving
information concerning any matter being, or to be, investigated
by the inspector pursuant to this Division.
3. In relation to the reference to "books" in paragraph (b) of
this form your attention is drawn to sub-section 4 (1) of the
Securities Industry Act 1980 which defines "books" as follows:
"books" includes any register or other record of information
and any accounts or accounting records, however complied,
recorded or stored, and also includes any document.
SECURITIES INDUSTRY
FORM 4 Regulation 13
Securities Industry Act 1980
APPLICATION BY A PERSON WHO IS NOT A BODY CORPORATE
FOR *A DEALERS LICENCE/*AN INVESTMENT ADVISERS LICENCE
Note: Before completing this application please read carefully
the "Directions for completing Form 4" at the end of this form
(especially clause 11).
1. The surname and other names of the person making this
application are:
and in this application that person is referred to as "the
applicant" (If the applicant proposes to hold the licence under
another name, that name should be specified in this item).
2. Resident address (including State or Territory and
postcode):
3. If the postal address is different from the residential
address specify it here (including State or Territory and
postcode):
4. The date and place of birth (including the State or
Territory or, if born outside Australia, the country of birth)
of the applicant are as follows:
Date Place
5. The number of years the applicant has lived in Australia in
the last 10 years:
6. The applicant is applying for *a dealers licence/*an
investment advisers licence and in this application the licence
applied for is referred to as "the licence".
7. The name of each existing business, and each business to be
established, that the applicant proposes to carry on under the
licence is as follows:
Existing business or businesses
Proposed business or businesses
and in this application that business is called "the business"
or, if there is more than 1 business, each of them is included
in that expression.
8. Particulars of the principal place at which the business is
to be carried on under the licence are as follows:
Principal business address (include State or Territory and
postcode):
Telephone No: Facsimile No:
Telex No: Document Exchange No:
Specify STD codes where appropriate
9. Addresses of all other places, whether in Australia or
elsewhere, at which the business is to be carried on under the
licence:
10. Address at which the applicant's register under Part VII of
the Act will be kept:
11. Specify here the nature of the principal business of the
applicant:
12. Specify here in detail the nature of the activity for which
the applicant requires the licence:
*13. If the applicant intends to deal in or advise on only some
kinds of securities, specify them here:
*14. If the business is to be carried on under the licence in
partnership, specify here:
(a) Name of each partner:
Surname Other names Address
(b) Applicant's interest in the partnership (expressed as a
percentage of the funds of the partnership): %
15. If any person, other than a person named in item 14, has or
will have:
(a) a controlling influence; or
(b) power to exercise a controlling influence;
over the management and policies of the business, specify here
the name and address of that person, or if more than 1, of each
of those persons:
16. Specify here the name and address of each person (other
than any person named in item 14) who shares or will share
directly or indirectly in the profits of the business:
*17. If the applicant is a director of a body corporate
(wherever incorporated), specify here:
(a) Name of the body corporate:
(b) Place of its incorporation:
(c) Date of the appointment: / /19 .
*18. If the applicant holds a relevant interest as determined
in accordance with section 5 of the Act in shares in any body
corporate (wherever incorporated) amounting to not less than
10% of the aggregate of the nominal amount of all the issued
shares in the body corporate, specify here:
(a) Name of the body corporate:
(b) Place of its incorporation:
(c) Details of the relevant interest:
19. Answer "Yes" or "No" to the following questions and for
each question answered "Yes", specify all relevant particulars.
Within the last 10 years, has the applicant (whether within
Australia or overseas):
(a) been licensed, registered or otherwise authorised under a
law which requires licensing, registration or other
authorisation to carry on any of the following activities or
activities that are substantially the same:
(i) dealing in securities (see the definition of "dealing" in
subsection 4 (1) of the Act); or
(ii) acting as an investment adviser (as defined in subsection
4 (1) of the Act); or
(iii) acting as a representative (within the meaning of section
6H of the Act)? and
(b) been licensed, registered or otherwise authorised by law to
carry on any trade, business or profession?
(c) been refused the right, or restricted in his or her right,
to carry on any trade, business or profession for which a
licence, registration or other authority is required by law?
(d) been a member, or partner in a member firm, of any
securities, stock, futures, commodities or other exchange?
(e) been suspended from membership in any securities, stock,
futures, commodities or other exchange or been disciplined by
any such exchange?
(f) been removed from membership of, or disciplined by, any
professional body?
(g) been refused membership of any securities, stock, futures,
commodities or other exchange?
(h) carried on business under any name other than the name or
names shown in this application?
(i) been known by any name other than the name or names shown
in this application?
(j) been convicted of any offence, other than a traffic
offence, or are there proceedings now pending that may lead to
such a conviction? See clause 9 of the "Directions for
completing Form 4" at the end of this form.
(k) had judgment, including findings in relation to fraud,
misrepresentation or dishonesty, given against him or her in
any civil proceedings? If the answer is "Yes", state whether
the judgment is unsatisfied.
(l) been an insolvent under administration? See clause 10 of
the "Directions for completing Form 4" at the end of this form.
(m) been engaged in the management of any bodies corporate
other than those named in item 17?
(n) been refused a fidelity or surety bond?
20. If the applicant:
(a) is applying for a dealers licence; and
(b) is, or intends to become, a member of a securities exchange
or a partner in a member firm of a securities exchange;
has the applicant or the member firm been granted any exemption
from capital requirements by the committee of the exchange? If
the answer is "Yes", attach an annexure giving all relevant
particulars.
21. Has the applicant had any experience in performing the
functions of:
(a) a dealer? (see the definition of "dealing" in subsection 4
(1) of the Act); or
(b) an investment adviser? (as defined in that subsection).
If the answer is "Yes", attach an annexure giving all relevant
particulars.
22. Specify in the following table details of the applicant's
employment and business activities during the last 5 years
indicating in columns 1 and 2 for any period of self employment
the words "self-employed":
---------------------------------------------------------------
Column 1 Column 2 Column 3 Column 4
Name and Nature of Nature of Dates of beginning
address of business employment and ending of each
employer of employer or activity employment or activity
---------------------------------------------------------------
23. Specify here in relation to the applicant's education:
Qualifications obtained Name of the institution
or course undertaken that granted the qualification
or conducted the course
Attach as an annexure a copy of the degree, diploma or
certificate awarded to the applicant in respect of a
qualification that the awarding institution certifies has
having been awarded to the applicant.
24. The applicant consents to any police force providing
information concerning any offences, other than traffic
offences, of which the applicant has been convicted in
Australia or elsewhere within the past 10 years.
25. Specify here any additional information that is relevant to
this application:
Dated 19 .
(Signature of applicant)
(Under the signature add the name of the applicant)
DIRECTIONS FOR COMPLETING FORM 4
Definitions
1. (1) In these Directions:
"applicant" means a person proposing to apply for a licence;
"application" means the application for a dealers licence or an
investment advisers licence by the applicant;
"business" means any existing business or each existing
business that the applicant proposes to carry on under the
licence;
"disclosed" means disclosed in the statement of assets and
liabilities;
"licence" means a dealers licence or an investment advisers
licence for which the applicant proposes to apply;
"relevant date", in relation to a statement of assets and
liabilities, means the date to which that statement is made up;
"statement of assets and liabilities" means the statement
referred to in clause 4.
(2) In these Directions, a reference to the assets and
liabilities of an applicant who is a partner in a firm on the
relevant date includes the proportion of the assets and
liabilities of the firm that corresponds to the licensee's
interest under the partnership agreement.
Omission of inapplicable matter prefixed by an asterisk
2. Inapplicable matter in an application form that is prefixed
by the symbol "*" is to be omitted.
Separate annexures to be used where insufficient space on forms
3. If there is insufficient space in an application form in
which to give the required information, the information is to
be shown in a separate annexure. Requirements relating to
annexures are set out in regulation 4A.
Statement of assets and liabilities to accompany application
4. (1) The application must have with it a statement
disclosing:
(a) the total liabilities of the applicant; and
(b) particulars of the applicant's assets in accordance with
clause 5.
(2) The statement of assets and liabilities:
(a) must be made up to a date not earlier than 14 days before
the date of lodgement of the application it is with; and
(b) must be signed by the applicant.
Tangible assets to be disclosed in certain cases
5. (1) In this clause:
"liabilities" includes liabilities of a contingent nature;
"relevant amount" means $50,000;
"tangible assets" does not include the value of any membership
in any securities, stock, futures, commodities or other
exchange.
(2) Full particulars of all the applicant's tangible assets
must be disclosed unless they exceed his or her liabilities by
the relevant amount or more.
(3) If the applicant's tangible assets exceed his or her
liabilities by the relevant amount or more, full particulars of
those assets are to be disclosed to the extent to which they
exceed those liabilities by the relevant amount.
(4) If any disclosed asset:
(a) is vested in the applicant and another person; or
(b) is encumbered in any manner;
full particulars must be disclosed of the applicant's interest
in the asset as well as any encumbrance and the interest of the
other person.
(5) If particulars of tangible assets are disclosed in
accordance with this clause, the basis of valuation must also
be disclosed where appropriate.
Liabilities to be disclosed
6. Full particulars of the applicant's liabilities that are
contingent must be disclosed separately from those that are not
and in each case must be expressed in terms of the time when
they will fall due, as follows:
(a) due not later than in one year after the relevant date; and
(b) due later than in one year but not later than in 3 years
after the relevant date; and
(c) due later than in 3 years after the relevant date.
Applicant's interest in partnership assets and liabilities to
be disclosed
7. If the applicant is a partner in a firm, the precise extent
of the applicant's interest under the partnership agreement in
the assets and liabilities of the firm must be disclosed.
Profit and loss account and balance sheet to be included in the
statement of assets and liabilities
8. (1) The statement of assets and liabilities must include a
copy of the last audited profit and loss account and balance
sheet relating to the business.
(2) The last audited profit and loss account and balance sheet
must include every document required:
(a) by law; or
(b) by the committee of any securities exchange of which the
applicant is a member;
to be attached to those documents.
(3) If the applicant has been unable to arrange for the
auditing of the last profit and loss account and balance sheet
of the business, the statement of assets and liabilities must
include a copy of a profit and loss account and balance sheet:
(a) drawn up in accordance with generally accepted accounting
principles; and
(b) signed in accordance with subclause (5).
(4) Where the profit and loss account and balance sheet of the
business are made up to a date (in this subclause called "the
balance date") earlier than 14 days before the lodgment of the
application, they must have with them a report, signed in
accordance with subclause (5), stating that the person or
persons signing the report has or have taken reasonable steps:
(a) to find out in relation to the period between the balance
date and a date not earlier than 14 days before the lodgment of
the application, whether any of the following is applicable:
(i) circumstances have arisen adversely affecting:
(A) trading by the business; or
(B) the value of the assets of the business; or
(C) the ability of the business to meet liabilities as they all
due; or
(ii) liabilities of a contingent nature have been incurred
including those arising because of a guarantee given by:
(A) the applicant; or
(B) where the business is conducted by a firm - any of the
partners;
and, if so, particulars of those circumstances or liabilities;
and
(b) to ensure that the current assets appear in the balance
sheet of the business at valuations believed to be realisable
in the ordinary course of business.
(5) A document relating to the business that is required to be
signed for the purposes of subclause (3) or (4) must be signed:
(a) where the business is conducted by a partnership - by all
of the partners; or
(b) in any other case - by the applicant.
Particulars required for the purposes of item 19 (j) of the
application
9. If the applicant has been convicted of an offence involving
dishonesty, fraud or theft, all relevant particulars must be
specified for the purposes of item 19 (j) of the application.
Particulars required for the purposes of item 19 (l) of the
application
10. (1) If the applicant has, or had, under the law of a
country other than Australia or of an external Territory, a
status equivalent to that of an insolvent under administration,
all relevant particulars must be specified for the purposes of
item 19 (l) of the application.
(2) If the applicant is, or has been, an insolvent under
administration under the law of Australia, include in an
annexure the following particulars:
(a) if he or she was declared bankrupt:
(i) the date on which he or she was so declared; and
(ii) the district in which he or she was so declared; and
(iii) his or her bankruptcy number; or
(b) if he or she has entered into a deed of arrangement, or
assignment, or where his or her creditors have accepted a
composition under Part X of the Bankruptcy Act 1966:
(i) the district in which the deed of arrangement or assignment
was entered into or the composition accepted; and
(ii) the date of the deed of arrangement or assignment or the
special resolution accepting the composition; and
(iii) the name and address of the trustee of the deed of
arrangement or assignment or of the composition; and
(iv) the identifying number used in relation to the deed of
arrangement or assignment or the composition in the office of
the Registrar in Bankruptcy.
Penalties relating to false or misleading statements
11. Subsection 135 (1) of the Act provides:
"(1) A person shall not in, or in connection with, an
application for a licence -
(a) make a statement that is false or misleading in a material
particular knowing it to be false or misleading; or
(b) omit to state any matter or thing knowing that by reason of
that omission the application is misleading in a material
respect.
Penalty: $2,500 or imprisonment for 6 months, or both.".
SECURITIES INDUSTRY
FORM 5 Regulation 14
Securities Industry Act 1980
APPLICATION BY A BODY CORPORATE FOR *A DEALERS LICENCE/*AN
INVESTMENT ADVISERS LICENCE
Note: Before completing this application please read carefully
the "Directions for completing Form 5" at the end of this form
(especially clause 7).
1. The name of the body corporate making this application is:
and in this application that body corporate is referred to as
"the applicant".
2. Particulars of the applicant's registered office are as
follows:
Address of registered office (include State or Territory and
postcode):
Telephone No: Facsimile No:
Telex No: Document exchange No:
Specify STD codes where appropriate.
3. If the applicant's postal address is different from the
address of its registered office specify it here (including
State or Territory and postcode):
4. Place of incorporation:
5. The applicant is applying for *a dealers licence/*an
investment advisers licence and in this application the licence
applied for is referred to as "the licence".
6. The name of each existing business, and each business to be
established, that the applicant proposes to carry on under the
licence is as follows:
Existing business or businesses
Proposed business or businesses
and in this application that business is called "the business"
or, if there is more than 1 business, each of them is included
in that expression.
7. Particulars of the principal place at which the business is
to be carried on under the licence are as follows:
Principal business address (include State or Territory and
postcode):
Telephone No: Facsimile No:
Telex No: Document exchange No:
Specify STD codes where appropriate
8. Addresses of all other places, whether in Australia or
elsewhere, at which the business is to be carried on under the
licence:
9. Address at which the applicant's register under Part VII of
the Act will be kept:
10. In this application "officer of the applicant" means:
(a) each director of the applicant; or
(b) the secretary or principal executive officer (if any) of
the applicant.
11. Specify in an annexure in respect of each officer of the
applicant (see item 10):
(a) name; and
(b) office held; and
(c) residential address; and
(d) date of birth; and
(e) date of appointment.
12. Specify here the nature of the principal business of the
applicant:
13. Specify here in detail the nature of the activity for which
the applicant requires the licence:
14. If the applicant intends to deal in or advise on only some
kinds of securities, specify them here:
15. If any person, other than a person named in item 11, has or
will have:
(a) a controlling influence; or
(b) power to exercise a controlling influence;
over the management and policies of the business, specify here
the name and address of that person, or if more than 1, of each
of those persons:
16. If an officer of the applicant (see item 10) is a director
of another body corporate (wherever incorporated), specify in
respect of each body corporate of which an officer is a
director:
(a) Name of the officer:
(b) Name of the body corporate:
(b) Place of its incorporation:
(c) Date of the appointment: / /19 .
17. If the applicant or an officer of the applicant (see item
10) has a relevant interest as determined in accordance with
section 5 of the Act in shares in any body corporate (wherever
incorporated) amounting to not less than 10% of the aggregate
of the nominal amount of all the issued shares in the body
corporate, specify in respect of each body corporate in which
the applicant or an officer has that interest:
(a) Name of the applicant or officer:
(b) Name of the body corporate:
(c) Place of its incorporation:
(d) Details of the relevant interest:
18. Answer "Yes" or "No" to the following questions and for
each question answered "Yes", specify all relevant particulars.
Within the last 10 years, has the applicant, or an officer of
the applicant (see item 10), whether within Australia or
overseas:
(a) been licensed, registered or otherwise authorised under a
law which requires licensing, registration or other
authorisation to carry on any of the following activities or
activities that are substantially the same:
(i) dealing in securities (see the definition of "dealing" in
subsection 4 (1) of the Act); or
(ii) acting as an investment adviser (as defined in subsection
4 (1) of the Act); or
(iii) acting as a representative (within the meaning of section
6H of the Act);
(b) been licensed, registered or otherwise authorised by law to
carry on any trade, business or profession?
(c) been refused the right, or restricted in its, his or her
right, to carry on any trade, business or profession for which
a licence, registration or other authority is required by law?
(d) been a member, or partner in a member firm, of any
securities, stock, futures, commodities or other exchange?
(e) been suspended from membership in any securities, stock,
futures, commodities or other exchange or been disciplined by
any such exchange?
(f) been removed from membership of, or disciplined by, any
professional body?
(g) been refused membership of any securities, stock, futures,
commodities or other exchange?
(h) carried on business under any name other than the name or
names shown in this application?
(i) been known by any name other than the name or names shown
in this application?
(j) been convicted of any offence, other than a traffic
offence, or are there proceedings now pending that may lead to
such a conviction? See clause 5 of the "Directions for
completing Form 5" at the end of this form.
(k) had judgment, including findings in relation to fraud,
misrepresentation or dishonesty, given against it, him or her
in any civil proceedings? If the answer is "Yes", state whether
the judgment is unsatisfied.
(l) been an insolvent under administration? See clause 6 of the
"Directions for completing Form 5" at the end of this form.
(m) been wound up, had a receiver or receiver and manager
appointed, been under official management or entered into a
compromise or scheme of arrangement?
(n) been engaged in the management of any bodies corporate
other than those named in item 16?
(o) been refused a fidelity or surety bond?
19. Has any officer of the applicant (see item 10) had any
experience in performing the functions of:
(a) a dealer? (see the definition of "dealing" in subsection 4
(1) of the Act); or
(b) an investment adviser? (as defined in that subsection).
If the answer is "Yes", attach an annexure giving all relevant
particulars.
20. Specify in the following table details of the employment
and business activities of each officer of the applicant (see
item 10) during the last 5 years indicating in columns 2 and 3
for any period of self-employment the words "self-employed":
---------------------------------------------------------------
Column 1 Column 2 Column 3 Column 4 Column 5
Name of Name and Nature of Nature of Dates of
officer address of business employment beginning and
employer of employer or activity ending of
each employment
or activity
---------------------------------------------------------------
21. Specify here in relation to the education of each officer
of the applicant (see item 10):
Qualifications obtained Name of the institution that
or course undertaken granted the qualification
or conducted the course
Attach as an annexure a copy of the degree, diploma or
certificate awarded to the applicant in respect of a
qualification that the awarding institution certifies has
having been awarded to the applicant.
22. The applicant consents to any police force providing
information concerning any offences of which the applicant has
been convicted in Australia or elsewhere within the past 10
3. The term "associated person" means a person who is deemed to
be associated with the dealer by virtue of the provisions of
section 6 of the Securities Industry Act 1980.
4. The term "immediate family" means spouse and children.
5. The term "current asset" is to be generally accorded the
meaning of an asset expected to be realised within 12 months in
the ordinary course of events.
6. The term "current liability" means a liability that would,
in the ordinary course of events, be payable within 12 months
after the end of the financial year to which the accounts
relate.
7. The term "secured amounts" includes amounts secured by
equitable charges and charges whether registered or
unregistered.
Balance Sheet as at 30th June, 19 Notes Last This
year year
19 19
$ $
Proprietors' Funds
Represented by:
Current Assets
Govt and Semi-Govt securities (market value
this year $ , last year $ )
Certificates of deposit at a Bank
Securities listed on a securities exchange
(market value this year $ , last
year $ ) 1
Bills of Exchange 2
Amount owed by - 3
Partners
Dealers (after providing for doubtful debts
this year $ , last year $ )
Clients (after providing for doubtful debts
this year $ , last year $ )
Partners' immediate families, family companies
and trusts (after providing for doubtful debts
this year $ , last year $ )
Employees, employees' immediate families,
family companies and trusts (after providing
for doubtful debts this year $ , last
year $ )
Other associated persons (after providing for
doubtful debts this year $ , last year
$ )
Loans and Deposits - 4
Cash at bank and in hand (excluding trust
account balances)
Trust Account -
Cash at bank and in hand
Deposit with securities exchange
Sundry debtors and prepayments
Other current assets - specify
Total Current Assets
Current Liabilities -
Bank overdraft and other bank facilities 5
Bills of Exchange 2
Amounts owed to - 3
Partners
Dealers
Clients
Partners' immediate families, family companies
and trusts
Employees, employees' immediate
families, family companies and trusts
Other associated persons
Loans and Deposits 4, 5
Sundry Creditors
Sundry Provisions 6
Other current liabilities - specify 5
Total Current Liabilities
Net Current Assets
Non-Current Assets -
Investments -
Securities quoted on a securities exchange
(market value this year $ , last year
$ ) - at cost 1
Securities not quoted on a securities exchange -
at cost
Furniture, fittings, equipment, motor
vehicles, etc. - at cost, less provision
for depreciation (provision for depreciation
this year $ , last year $ )
Freehold Property - at cost, less provision
for depreciation on building (provision for
deprecation this year $ , last year
$ )
Amounts owed by - 3
Partners
Partners' immediate families, family companies
and trusts
Employees, employees' immediate families,
family companies and trusts
Other associated persons
Loans and Deposits 4
Other non-current assets - specify
Total Non-Current Assets
Non-Current Liabilities -
Bank loans 5
Other loans and deposits 4, 5
Partners
Partners' immediate families, family
companies and trusts
Employees, employees' immediate families,
family companies and trusts
Other associated persons 3
Other non-current liabilities - specify 5
Total Non-Current Liabilities
Net Non-Current Assets
Total Net Assets
Contingent liabilities and capital commitments 7
Profit and Loss Account for the year ended
30th, June 19
Revenue -
Profits (losses) from trading in securities
Brokerage
Underwriting Commission
Profits (losses) from trading other than in
securities
Dividends
Interest
Other -
Total Revenue
Expenses -
Bad debts written off
Amount provided for doubtful debts
Interest
Salaries (including all bonuses but excluding
partners' salaries)
Other expenses
Total Expenses
Operating Profit Before Income Tax -
Less -
Income Tax *Expense/*Provision applicable
thereto
Operating Profit
(1) Extraordinary Items (net of Income Tax
where applicable)
Operating Profit and Extraordinary Items
for the year
* Strike out whichever is inapplicable
(1) Attach list detailing gains and losses separately and any
income tax involvements
NOTES
1 List the name, number and value of all securities held which
were acquired during the year as a result of an underwriting or
sub-underwriting agreement.
Security Number Balance Basis of
Sheet Valuation
Valuation
2 Bills of exchange
Last year This year
$ $
(a) Current assets - to mature within:
30 days
90 days
180 days
Current assets - over 180 days
Last year This year
$ $
(b) Current liabilities - to mature within:
30 days
90 days
180 days
Current liabilities - over 180 days
3 Secured assets/liabilities - associated persons
(a) Current assets -
Secured amounts included in the following categories (state in
each case the nature and extend of the security, and show the
market value).
Amount Nature and Market
extent of value of
security security
Partners
Partners' immediate families, family companies and trusts
Employees, employees' immediate families, family companies and
trusts
Other associated persons
(b) Non-current assets -
Secured amounts included in the following categories (state in
each case the nature and extent of the security, and show the
market value).
Amount Nature and Market
extent of value of
security security
Partners
Partners' immediate families, family companies and trusts
Employees, employees' immediate families, family companies and
trusts
Other associated persons
(c) Current liabilities
Secured amounts included in the following categories (state in
each case the nature and extent of the security, the market
value, and whether or not the security asset is owned by the
dealer or, where he carries on business in partnership, by the
firm).
Amount Nature and Market Market
extent of value of value of
security security security
disclosed not owned
in Balance by dealer
Sheet or firm
Partners
Partners' immediate families, family companies and trusts
Employees, employees' immediate families, family companies and
trusts
Other associated persons
(d) Non-current liabilities
Secured amounts included in the following categories (state in
each case the nature and extent of the security, the market
value, and whether or not the security asset is owned by the
dealer or where he carries on business in partnership, by the
firm).
Amount Nature and Market Market
extent of value of value of
security security security
disclosed not owned
in Balance by dealer
Sheet or firm
Partners
Partners' immediate families, family companies and trusts
Employees, employees' immediate families, family companies and
trusts
Other associated persons
4 Loans and deposits (full details to be given relating to
whether each loan is secured or unsecured)
Totals are to include accrued interest.
(a) Current assets -
Last year This year
At call
Other
Provision for doubtful debts
(b) Non-current assets -
Last year This year
Due within 1-2 years
Due after 2 years
Provision for doubtful debts
(c) Current liabilities -
At call
Other
(d) Non-current liabilities -
Due within 1-2 years
Due after 2 years
5 Secured Liabilities - general
The balance sheet includes liabilities in the following
categories secured by assets (state in each case the nature and
extent of the security, the market value, and whether or not
the security asset is owned by the dealer or, where he carries
on business in partnership, by the firm).
(a) Current liabilities -
Amount Nature and Market Market
extent of value of value of
security security security
disclosed not owned
in Balance by dealer
Sheet or firm
Bank overdraft and other bank facilities
Loans/Deposits
Other (specify)
(b) Non-current liabilities -
Bank facilities (not overdraft)
Loans/Deposits
Other (specify)
6 Sundry Provisions
Last year This year
Holiday pay
Long service leave pay
Other (specify)
Totals to agree with balance sheet totals.
7 Contingent liabilities and capital commitments
Last year This year
Contingent liabilities -
(a) Underwriting
Sub-underwriting
less amounts covered by sub-underwriting with other persons
(b) Other (specify) -
Capital commitments (specify) -
STATEMENT BY DEALER
The transactions conducted by *me/*us during the financial year -
*were without exception on *my/*our own account.
*included transactions on account of persons other than
*me/*us.
The assets and liabilities of each company controlled by me/us
or any one or more of us or any other venture in which I/we
have a financial interest are/are not in my/our opinion such as
to affect adversely my/our financial position.(1)
*I/*We certify that the above profit and loss account and
balance sheet have, to the best of *my/*our knowledge and
belief, been drawn up to comply with the requirements of
sub-section 78 (2) of the Securities Industry Act 1980
(2)
*Licensee/*Partners in the firm of
Dated this day of 19
AUDITOR'S REPORT (3)
In *my/*our opinion, the dealer's accounts referred to above
*show/*do not show a true and fair view of the dealer's
position at and of the profit or loss of the dealer for
the year in accordance with statements of accounting standards
issued by the Institute of Chartered Accountants in Australia
or the Australian Society of Accountants, or both.
Dated this day of 19
Signature(s) of Auditor(s)
(1) Strike out all the alternatives in paragraph which are
inapplicable
(2) All partners to sign
(3) If an auditor is not satisfied as to any matter his reasons
should be stated
*Strike out whichever alternative is inapplicable
FORM 16 Regulation 38
Securities Industry Act 1980
STATEMENT RELATING TO ACCOUNTS OF A DEALER THAT IS A
CORPORATION
Name of dealer
Licence number
1 The attached Balance Sheet, Profit and Loss Account and Notes
are a true copy of the audited accounts of for the year
ended and the attached Auditor's Report is a true copy of
the Auditor's Report thereon.
2 The attached accounts referred to above have been drawn up in
accordance with generally accepted accounting principles.
3 The following supplementary information is submitted in
support of the attached Balance Sheet and Profit and Loss
Account.
Last This
year year
19 19
$ $
Balance Sheet
4 Assets -
(a) Bills of Exchange: show separately bills to mature within -
30 days
90 days
180 days
Bills of Exchange to mature over 180 days
(b) Debtors -
Amounts owed by -
Dealers (less provision for doubtful debts this year $ ,
last year $ )
Clients (less provision for doubtful debts this year $ ,
last year $ )
Other Debtors (less provision for doubtful debts this year
$ , last year $ )
(c) Loans and Deposits -
At call
Other (show current and non-current separately)
(d) Cash at Bank -
General accounts
Trust account
Liabilities -
5 (a) Bills of Exchange - show separately bills to mature
within -
30 days
90 days
180 days
Bills of Exchange to mature over 180 days
(b) Creditors -
Amounts owed to -
Dealers
Clients
Other creditors
(c) Loans and Deposits -
At call
Other (show current and non-current separately)
Profit and Loss Accounts -
6 (a) Revenue -
Profit (losses) from trading in securities
Brokerage
Underwriting Commission
Profit (losses) from trading other than in securities
Dividends
Interest
Other
Total Revenue
(b) Less Expenses -
Bad debts written off
Amount provided for doubtful debts
Interest
Other Expenses
Total Expenses
(c) Operating Profit before Income Tax
less Income Tax *Expense/*Provision applicable thereto
Operating Profit
Extraordinary Items (net of Income Tax where applicable)(1)
Operating Profit and Extraordinary Items for the year
7 Contingent Liabilities and Capital Commitments -
(a) Contingent liabilities -
Underwriting
Sub-underwriting
less Amounts covered by sub-underwriting with other persons
Other (specify)
(b) Capital Commitments (specify)
8 Standby credit facilities - show for each facility -
(i) amount
(ii) type
(iii) source
(iv) terms and availability
9 Subordinated loans - show for each loan -
(i) amount
(ii) source
(iii) duration
10 Foreign Exchange exposure - to the extent not disclosed in
the attached accounts show the gain or loss that would be
realised at prevailing rates of exchange.
11 The transactions conducted by the dealer during the
financial year -
(a) were without except on the dealer's own account; or
(b) included transactions on account of persons other than the
dealer.
12 The assets and liabilities of each company controlled by the
dealer or any other venture in which the dealer has a financial
interest *are/*are not in our opinion such as to affect
adversely to a material extent the dealer's financial position.
We certify that the above information is to the best of our
knowledge and belief true and correct.
Dated this day of 19
................ ................
Director Director
AUDITOR'S REPORT(2)
*I/*We report that in *my/*our opinion the above statement
relating to the accounts of has been properly drawn
up so as to provide the information required by the Securities
Industry Regulations.
In *my/*our opinion, the attached dealer's accounts referred to
above *show/*do not show a true and fair view of the dealer's
position at and of the profit or loss of the dealer for
the year in accordance with statements of account standards
issued by the Institute of Chartered Accountants in Australia
or the Australian Society of Accountants, or both.
Dated this day of 19
Signature(s) of Auditor(s)
(1) Attach list detailing gains and losses separately and any
income tax involvements.
(2) If an auditor is not satisfied as to any matters his
reasons should be stated.
* Strike out whichever is inapplicable
FORM 17 Regulation 39
Securities Industry Act 1980
AUDITOR'S REPORT (1)
Name of dealer or name under which licence is held
Name(s) of Auditor(s)
Financial year ended
PART A - FOR ALL DEALERS
1 *I/*We have inspected the dealers licence(s) and noted any
conditions or restrictions thereon, and any applicable
conditions or restrictions prescribed by regulations under the
Securities Industry Act 1980.
2 After conducting, in accordance with regulation 39 of the
Securities Industry Regulations, a check or test examination
and making sufficient enquiries *I am/*we are of the opinion
that(2) -
(a) the accounting and other records kept by the dealer
comply/do not comply with sections 67 and 71 of the Securities
Industry Act 1980;
(b) the internal control procedures of the dealer are
adequate/inadequate having regard to the nature and size of the
business of the dealer;
(c) client's securities have/have not been pledge by the dealer
otherwise than in accordance with section 72 of the Securities
Industry Act 1980;
(d) securities held for sale or for safe custody (or any other
purpose) or purchased for clients and paid for by them
have/have not been held unencumbered by the dealer;
(e) the trust account has/has not been maintained at all times
during the year in accordance with sections 73 and 74 of the
Securities Industry Act 1980 and the accounting therefore is
adequate/inadequate;
(f) the dealer has/has not properly held or disposed of all
securities received by him;
(g) the internal procedures designed to ensure compliance with
all the conditions or restrictions applicable to the dealers
licence are adequate/inadequate;
(h) no matter/other matter has arisen during the year which
would have required me/us to report to the Commission pursuant
to section 79 of the Securities Industry Act 1980 (reference
should be made to any report made in accordance with section 79
of the Securities Industry Act 1980 identifying the date of the
report and the provisions of the Securities Industry Act 1980
to which the report refers);
(i) all conditions or restrictions of a financial nature
applicable to the dealers licence have/have not been complied
with;
(j) (For Stockbrokers) -
*the deposit required by section 95 of the Securities Industry
Act 1980 has/has not been maintained by the dealer with the
Stock Exchange of which he is a member.
*under the provisions of sub-section 96 (3) of the Securities
Industry Act 1980 the dealer was not required to maintain a
deposit under section 95 of the Securities Industry Act 1980.
3 The checks and test examinations referred to in this report,
the audit of the accompanying Balance Sheet of the dealer as at
(3), the Profit and Loss Account for the year ended on that
date and Notes *have/*have not been carried out in accordance
with generally accepted auditing standards and standard
auditing practice promulgated by the Institute of Chartered
Accountants in Australia or the Australian Society of
Accountants or both and *included/*did not include such tests
of the accounting records and such other auditing procedures as
*I/*we consider necessary.
(1) Where any part of this report is qualified, attach a
separate comprehensive report.
(2) Strike out whichever alternative in each of paragraphs (a)
to (j) is not applicable.
(3) Insert date of balance sheet.
4 *The client placed on restriction on the scope of the audit
and all the information and explanations required were
received./*The client restricted the scope of the audit and all
the information and explanations required were not received.
PART B - FOR STOCKBROKERS
5 *I/*We have inspected a current indemnity Insurance Policy
No. for $ issued by in favour of the dealer
for a total cover determined by the Committee of the Stock
Exchange of which he is a member.
Dated this day of 19
Signature(s) of Auditor(s)
* Strike out whichever is inapplicable.
FORM 18 Regulation 40
Securities Industry Act 1980
REGISTER OF SECURITIES
Name of person having relevant interest
Name of body corporate by which securities issued or made
available
Date of entry
Description of securities
Number of securities to which the relevant interest
or the change in interest, including the acquisition
or disposal of a relevant interest, relates
Nature of relevant interest
Date of acquisition or disposal of relevant
interest or of other change in interest
Particulars of change in relevant interest
Valuable consideration and nature of that part of
consideration that did not consist of money
(If the securities are not registered
in the name of the person having the
Relevant interest)
Name of person who Name of person who
is registered as the is entitled to
holder of the securities become registered
as the holder of
the securities
SECURITIES INDUSTRY
FORM 19 Regulation 42
Securities Industry Act 1980
NOTICE OF *PLACE/*CHANGE OF PLACE AT WHICH REGISTER IS KEPT
*PARTICULARS/*CHANGE OF PARTICULARS IN REGISTER
Note: Before completing this notice please read carefully the
"Directions for completing Form 19" at the end of this form.
*1. The surname and other names of the person keeping the
register are:
and in this notice that person is referred to as "the register
keeper". If the register keeper is a licensee under another
name, that name should be specified in this item.
*1. The name of the body corporate keeping the register is:
and in this notice that body corporate is referred to as "the
register keeper".
2. The register keeper is *a financial journalist/*the holder
of/*a licence/*a proper authority from/*a licensee/*a
recognised licensee.
*3. The licence held by the register keeper or to which the
proper authority relates is *a dealers/*investment advisers
licence and its number is:
*4. The residential address of the register keeper (including
State or Territory and postcode) is:
*4. If the register keeper is a body corporate specify here the
following particulars:
Address of registered office (include State or Territory and
postcode):
Telephone No: Facsimile No:
Telex No: Document exchange No:
Specify STD codes where appropriate.
5. If the register keeper's postal address is different from
the residential or registered office address, specify it here
(with State or Territory and postcode):
6. The register has been kept since:
7. The register is kept at:
*7. On / /19
the place at which the register is kept changed
from:
to:
*8. If the register keeper carries on a business, specify here
the following particulars:
Principal business address (include State or Territory and
postcode):
Telephone No: Facsimile No:
Telex No: Document exchange No:
Specify STD codes where appropriate.
*8. If the register keeper holds a proper authority from a
licensee or recognised licensee or is employed as a financial
journalist, specify here the following particulars relating to
the licensee, recognised licensee or employer:
Name
Business address (include State or Territory and postcode):
Telephone No: Facsimile No:
Telex No: Document exchange No:
Specify STD codes where appropriate.
*9. On / /19 the register keeper *began/*ceased* to be
employed as a financial journalist/*to contribute as a
financial journalist to a newspaper or periodical.
10. On / /19 the *name/*business address/*name and
business address of the *licensee/*recognised
licensee/*employer changed as follows:
Former *name/*business address
Present *name/*business address
11. On / /19 the register keeper *began/*ceased to hold a
proper authority from. (Insert name of *licensee/*recognised
licensee).
*12. If the register keeper is a financial journalist who
contributes to newspapers or periodicals otherwise than as an
employee, specify here the titles of the newspapers or
periodicals in which advice, analyses or reports contributed by
the register keeper are published:
*13. On / /19 the name of a newspaper or periodical to
which a financial journalist contributes otherwise than as an
employee changed as follows:
Former name Present name
Dated 19 .
(Signature of *register keeper/*director/*secretary/*principal
executive officer of the register keeper)
DIRECTIONS FOR COMPLETING FORM 19
Time for lodging notice
1. (1) Part VII of the Act obliges a person who is a licensee,
holder of a proper authority or a financial journalist to
maintain a register (see sections 88 and 89 of the Act). In
that register, securities in which the person has a "relevant
interest" (see section 5 of the Act) are to be recorded.
(2) A notice of the type in Form 19 must be lodged by a person:
(a) within 14 days of beginning to maintain a register (see
subsections 90 (2) and (3) of the Act); or
(b) as soon as practicable after changing the place where the
register is kept (see subsection 90A (1) of the Act); or
(c) as soon as practicable after:
(i) the person begins or ceases to hold a proper authority (see
subsection 90A (2) of the Act) or the name or business address
of the licensee or recognised licensee from whom the authority
is held changes (see subsection 90A (4) of the Act); or
(ii) the person begins or ceases to be employed as a financial
journalist or the name or business address of the person's
employer changes (see subsections 90A (3) and (4) of the Act);
or
(iii) the person begins or ceases to contribute as a financial
journalist to a particular newspaper or periodical or the name
of the newspaper or periodical changes (see subsection 90A (3)
and (4) of the Act).
Omission of inapplicable matter prefixed by an asterisk
2. Inapplicable matter in a notice that is prefixed by the
symbol "*" is to be omitted.
Separate annexures to be used where insufficient space on forms
3. If there is insufficient space on a notice in which to give
the required information, the information is to be shown in a
separate annexure. Requirements relating to annexures are set
out in regulation 4A.
FORM 20 Regulation 43
Securities Industry Act 1980
NOTICE OF APPEAL
In the Supreme Court of the
Australian Capital Territory
Applicant: (Here insert full name and address of the
applicant)
Respondent: (Here insert full name and address of the
respondent)
The applicant hereby appeals to the Supreme Court of the
Australian Capital Territory in pursuance of sub-section 113
(2) of the Securities Industry Act 1980 against the
determination of the fidelity fund committee of the
(Here insert name of securities exchange).
Dated this day of 19
Signature of the applicant
FORM 21 Regulation 44
Securities Industry Act 1980
NOTICE CALLING FOR CLAIMS AGAINST A SECURITIES EXCHANGE
FIDELITY FUND
In the matter of
of
in the
Notice is hereby given that all persons claiming to have
suffered pecuniary loss by reason of a defalcation or
fraudulent misuse of securities or documents of title to
securities by the above-named, or by any of his
employees or servants, in relation to any money or other
property entrusted to or received by him or by any of his
employees or servants are required to deliver to the
securities exchange particulars of their claims, in writing, on
or before the day of 19 .
Subject to section 114 of the Securities Industry Act 1980,
claims not received by the Committee of the securities
exchange on or before such date will not be admitted and no
payment in respect thereof will be made from the fidelity fund.
For the
securities exchange
Date
FORM 22 Regulation 45
Securities Industry Act 1980
NOTICE OF DISALLOWANCE OF CLAIM AGAINST A SECURITIES EXCHANGE
FIDELITY FUND
In the matter of
of
securities exchange has considered your claim against the
securities exchange Fidelity Fund in respect if pecuniary loss
alleged to have been suffered from a defalcation or fraudulent
misuse of securities or documents of title to securities by the
above-named* member/*partner in a member firm of this Exchange
or by any of his employees or servants.
The Committee has decided, that having regard to all available
evidence, the claim should be *disallowed/*partly disallowed to
the extent set out hereunder and you are hereby notified
accordingly.
Dated this day of 19
Signed
for the securities exchange
(Further details as appropriate)
* Strike out whichever is inapplicable
SECURITIES INDUSTRY
FROM 23 Section 141A,
sub-sections 150
(1A) and (1C)
Securities Industry Act 1980
PENALTY NOTICE
To(1)
1. It is alleged that at(2) on(3) 19 you
committed an offence under or in relation to(4) in that
you(5) Such an offence is a prescribed offence.
2. Prescribed penalty: $
Payable to(6)
*3. (Applicable where the penalty notice relates to an offence
constituted by a failure to do a particular act or thing) Take
notice that -
(a) the obligation to(7) continues, notwithstanding the
service of this notice or the payment of the prescribed
penalty;
(b) if, within 21 days after the date of service of this
notice, you -
(i) pay the prescribed penalty to the authority specified in
paragraph 2; and
(ii) (7) , no further action will be taken against you in
relation to the offence particulars of which are set out in
paragraph 1; and
(c) if, at the expiration of 21 days after the date of service
of this notice, you -
(i) have not paid the prescribed penalty to the authority
specified in paragraph 2; or
(ii) have not(7) , proceedings may be instituted against
you.
*3. (Applicable where the penalty notice relates to an offence
other than one constituted by a failure to do a particular act
of thing) (8)Take notice that if, within 21 days after the date
of service of this notice, you pay the prescribed penalty to
the authority specified in paragraph 2, no further action will
be taken against you in relation to the offence particulars of
which are set out in paragraph 1.
If, at the expiration of 21 days after the date of service of
this notice, you have not paid the prescribed penalty to the
authority specified in paragraph 2, proceedings may be
instituted against you.
Given by on behalf of the National Companies and
Securities Commission at on this day of 19
* Strike out if inapplicable.
(1) Insert name of person alleged to have committed offence.
(2) Insert place.
(3) Insert date.
(4) Insert provision under or in relation to which the offence
is alleged to have been committed.
(5) Set out particulars of alleged offence, including
description of alleged conduct constituting the alleged
offence.
(6) Insert name and address of Corporate Affairs Commission for
the Territory.
(7) Insert a description of the particular act or thing that
the person allegedly failed to do in committing the alleged
offence.
(8) Payment of the penalty is not an admission of liability
(see sub-section 141A (6)).
FORM 24 Section 122GE
Securities Industry Act 1980
STATEMENT IN RELATION TO PAYMENTS OUT OF DEVELOPMENT ACCOUNT
Statement of payments
1. Participating exchange:
2. Details of payments in respect of
financial year ending on 19 .
(a) purpose of payments (state purpose as approved by
Ministerial Council)
(b) date of approval by Ministerial Council
19 .
(c) amount of payments $
(d) total of all payments (including any previous financial
year) for this purpose (state total at end of financial year) $
(e) further payments for this purpose *ARE/*ARE NOT envisaged.
3. Total of payments for all purposes in respect of financial
year ending on 19 .
$
Declaration
I, (full name), declare:
(a) that, to the best of my knowledge and belief, the
information contained in the above statement of payments is
correct; and
(b) that this declaration is made pursuant to a resolution of
the board of directors of (insert name of participating
exchange), being a resolution that has adopted the information
contained in the statement.
Dated 19 .
(Signature of *director/*secretary/*principal executive
officer)
Statement by auditor
*I/*We/, (name of auditor), state that:
(a) *I/*We/ have audited the above statement of payments out of
the development account of (name of participating exchange) in
respect of the financial year ending on 19 ; and
(b) in *my/*our/ opinion, that statement of payments
*does/*does not/ accurately represent the payments made out of
that account in the course of that financial year.
Dated 19 .
(Signature of auditor)
* Strike out if not applicable.
DIRECTION
If payments to be specified under clause 2 of the statement of
payments relate to more than one approved purpose, paragraphs
(a) to (e) inclusive of that clause should be repeated for each
purpose.
FORM 25 Subsection 122X (1)
Regulation 45B
Securities Industry Act 1980
NOTICE CALLING FOR CLAIMS AGAINST THE NATIONAL SECURITIES
EXCHANGE GUARANTEE CORPORATION
In relation to(1) of(2) *formerly/carrying on
business at(3) in the *State/*Territory/of , a dealer
who has become insolvent.
Notice is given that any person who wishes to make a claim
under subsection 122R (1) of the Securities Industry Act 1980
in respect of property that was, in the course of, or in
connection with, the abovementioned dealer's business of
dealing in securities, entrusted to or received by that dealer
(or another person as provided under that subsection) is
required to lodge in writing particulars of his or her claim
with the National Securities Exchanges Corporation before
19 .
Subject to section 122X of the Act, a claim not received by the
Corporation on or before the above date will not be admitted or
allowed.
Dated 19 .
(Signature of authorised officer)
For the Corporation
* Strike out if not applicable.
(1) Insert name of dealer who has become insolvent.
(2) Insert residential address.
(3) Insert address of principal place of business.
NOTE
Subsection 122R (1) of the Securities Industry Act 1980
provides to the effect that, where the Requirements of the
subsection are otherwise met, a person may make a claim in
respect of property that was, in the course of, or in
connection with, the dealer's business of dealing in
securities, entrusted to, or received by:
(a) unless paragraph (b) applies - the dealer or an employee of
the dealer; or
(b) if the dealer was, at the time the property was so
entrusted or received, a partner in a member organisation - the
member organisation, or a partner in, or an employee of, the
member organisation.
FORM 26 Section 122YF
Regulation 45D
Securities Industry Act 1980
NOTICE OF DISALLOWANCE OF CLAIM AGAINST THE NATIONAL SECURITIES
EXCHANGES GUARANTEE CORPORATION
In relation to(1) of(2) *formerly/carrying on
business at(3) , in the *State/*Territory/of , a
dealer who has become insolvent.
The committee of the Corporation has considered your claim
against the Corporation in respect of property alleged to have
been entrusted to or received by *the abovementioned
dealer/*(insert reference to another person referred to in
subparagraph 122R (1) (b) (i) or (ii) of the Act)/in the course
of, or in connection with, that dealer's business of dealing in
securities.
The Corporation has decided, having regard to all available
evidence, that the claim should be *disallowed/*partly
disallowed/to the extent set out below, and you are hereby
notified accordingly.
Dated 19 .
(Signature of authorised officer)
For the Corporation
Details relating to disallowance of claim
* Strike out if not applicable.
(1) Insert name of dealer who has become insolvent.
(2) Insert residential address.
(3) Insert address of principal place of business.
SECURITIES INDUSTRY REGULATIONS - SCHEDULE 2 SCH
SCHEDULE 2 Regulation 10
WITNESSES' FEES AND TRAVELLING EXPENSES
1. A person who attends an examination before an inspector to
give evidence because of his professional, scientific or other
special skill or knowledge shall be paid a fee of not less than
$45 and not more than $250 for each day on which he so attends.
2. A person, other than a person referred to in clause 1 of
this Schedule, who attends at an examination before an
inspector to give evidence or to produce documents shall be paid -
(a) if he is remunerated by wages, salary or fees -
(i) a fee equal to the amount of wages, salary or fees lost by
reason of his so attending; or
(ii) a fee of $50 for each day on which he so attends,
whichever is the less; or
(b) if he is not so remunerated - a fee of $30 for each day on
which he so attends.
3. A person attending an examination before an inspector to
give expert evidence shall be paid, in addition to any other
fee payable to him under clause 1 or 2 of this Schedule, a
reasonable amount for qualifying to give that evidence.
4. A person attending an examination before an inspector to
give evidence or to produce documents shall be paid a
reasonable amount -
(a) in respect of his conveyance to and from the place at which
he so attends; and
(b) if he is required to be absent overnight from his usual
place of residence - for meals and accommodation.
SECURITIES INDUSTRY REGULATIONS - SCHEDULE 3 SCH
SCHEDULE 3 Regulation 49
Section 141A
PRESCRIBED OFFENCES - PROVISIONS AND PENALTIES
Column 1 Column 2 Column 3
Item Provision Penalty
$
1 Section 55 125
2 Sub-section 56 (1) 125
3 Sub-section 56 (2) 125
4 Sub-section 78 (2) 125
5 Sub-section 78 (4) 125
0
0
0