Australian Securities and Investments Commission
Corporations Act 2001 — Paragraph 741(1)(a) — Variation
Under paragraph 741(1)(a) of the Corporations Act 2001 (the “Act”) and with effect from the commencement of Schedule 1 to the Financial Services Reform Act 2001, the Australian Securities and Investments Commission hereby varies Class Order [00/656] by:
1. omitting from the heading the word “Law” and substituting the words “Act 2001”;
2. omitting from the introductory words, the words “Corporations Law (the Law)” and substituting the words “Corporations Act 2001 (the “Act”)”;
3. omitting from the introductory words, the word “Law” (third occurring) and substituting the word “Act”;
4. omitting the words “securities exchange” in paragraph (b) of Schedule B and substituting the words “market operator”;
5. inserting before the word "rules" in paragraph (b) of Schedule B the word "operating"; and
6. omitting the words “securities exchange” in paragraph (c) of Schedule B and substituting the words “financial market”.
Dated this 5th day of February 2002
Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission
Overview
The Australian Securities and Investments Commission Corporations Act 2001, enacted by the Commonwealth Parliament, was introduced to consolidate, amend, and modernise the laws relating to corporations and financial markets in Australia. The act aimed to address gaps in the previous regulatory framework by providing a more comprehensive and integrated approach to corporate regulation. In this context, the Financial Services Reform Act 2001 facilitated the transition to the new Act, which was designed to enhance transparency, accountability, and efficiency in the corporate and financial sectors. The policy objective of these legislative reforms was to strengthen the protection of investors and the public, ensure the integrity of the financial system, and promote confidence in Australia's corporate and financial markets. The legislative instrument, F2006B01632, details specific variations to Class Order [00/656], reflecting the transition from the former Corporations Law to the new Corporations Act 2001, and aims to update references and terminology to align with the new legislative framework.
Scope and Application
The Australian Securities and Investments Commission, under the authority of paragraph 741(1)(a) of the Corporations Act 2001, has amended Class Order [00/656] to reflect the changes brought about by the Financial Services Reform Act 2001. This legislative instrument applies to entities and persons involved in financial markets, particularly market operators and financial markets themselves, by ensuring the terminology in the Class Order aligns with the newly enacted Corporations Act 2001. The amendment specifies changes such as substituting references to the "Corporations Law" with the "Corporations Act 2001", and replacing instances of "securities exchange" with "market operator" and "financial market". The changes are effective from the commencement of Schedule 1 to the Financial Services Reform Act 2001, impacting the regulated entities within Australia. The Act applies nationwide, encompassing all states and territories under the Commonwealth jurisdiction, ensuring a consistent legal framework across the financial sector. There are no exclusions or exemptions explicitly stated in this variation, and it does not introduce new thresholds; rather, it ensures the regulatory language is up-to-date with the current legislative terminology.
Key Provisions
The legislative instrument in question, F2006B01632, pertains to the variation of Class Order [00/656] under paragraph 741(1)(a) of the Corporations Act 2001. The changes made to Class Order [00/656] are aimed at aligning the terminology with the new legislative framework established by the Financial Services Reform Act 2001. Specifically, the modifications involve replacing instances of the term "Corporations Law" with "Corporations Act 2001," and adjusting references to "securities exchange" to "market operator" and "financial market." These changes are intended to reflect the updated legal terminology and structure introduced by the Financial Services Reform Act 2001.
Under this variation, the Act mandates several specific changes to Class Order [00/656]. For instance, it requires the removal of the word "Law" from the heading and substituting it with "Act 2001," and similarly, the substitution of "Corporations Law" with "Corporations Act 2001" in the introductory words. Additionally, the term "securities exchange" is to be replaced with "market operator" and "financial market" in relevant sections, ensuring consistency with the new legislative language. These alterations ensure that the Class Order remains in line with the updated legal framework and avoids any ambiguity or misinterpretation that might arise from outdated terminology.
The obligations imposed by this variation primarily concern those who must adhere to the Class Order [00/656]. Parties or entities governed by this Class Order must ensure that their documentation and references reflect the updated terminology as specified in the legislative instrument. This includes updating internal documents, compliance materials, and any external communications to align with the new terminology. Failure to comply with these changes could result in non-compliance with regulatory requirements and potentially lead to legal consequences.
The Act does not explicitly state specific offences or penalties for non-compliance with the changes in this variation; however, it is implied that failure to adhere to regulatory requirements can result in civil or criminal consequences. The Australian Securities and Investments Commission (ASIC) has the authority to take action against entities that do not comply with the legislative requirements, which can include fines, legal proceedings, or other enforcement actions. The exact penalties would depend on the nature and severity of the non-compliance, but it is clear that adherence to these updated provisions is crucial for maintaining regulatory compliance.