Australian Securities and Investments Commission
Corporations Act 2001 — Paragraph 655A(1)(b) — Variation
Under paragraph 655A(1)(b) 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 [00/343] by:
1. omitting from the heading the word “Law” and substituting the words “Act 2001”;
2. omitting from the introductory words:
(a) the words “Corporations Law (the “Law”)” and substituting the words “Corporations Act 2001 (the “Act”)”; and
(b) the word “Law” (third and fourth occurring) and substituting the word “Act”;
3. omitting from subsection 619(5) as notionally inserted into the Act by the class order:
(a) the words “business rules” and substituting “operating rules”; and
(b) the words “securities exchange on a stock market of” (twice occurring) and substituting the words “prescribed financial market on”; and
4. omitting from Schedule B:
(a) the words “business rules” and substituting the words “operating rules”;
(b) the words “securities exchange on a stock market of” and substituting the words “prescribed financial market on”; and
(c) the words “securities exchange” (second occurring) and substituting the words “financial market”.
Dated this 1st day of March 2002
Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission
Overview
The Australian Securities and Investments CommissionCorporations Act 2001, enacted in 2001, was introduced to provide a comprehensive legislative framework for corporations in Australia, addressing the need for updated and consolidated legislation to better regulate corporate activities and protect investors and the public. This Act was enacted by the Parliament of Australia and is aimed at enhancing the efficiency and effectiveness of the corporate regulatory system. The legislative instrument F2006B01609, dated 1 March 2002, amends Class Order [00/343] in accordance with the transition from the former Corporations Law to the new Corporations Act 2001, ensuring consistency and continuity in the regulatory terminology and scope within the financial services sector. The policy objective of this amendment is to align existing regulations with the new legislative framework, thereby maintaining regulatory coherence and facilitating the smooth transition to the updated Act.
Scope and Application
The Corporations Act 2001, as varied by the Australian Securities and Investments Commission through legislative instrument F2006B01609, applies to entities, industries, and conduct within the scope of the financial markets in Australia. Specifically, it targets operating rules and prescribed financial markets, affecting how financial markets operate and are regulated. The changes made by the legislative instrument adjust terminology to reflect the transition from the former Corporations Law to the Corporations Act 2001, ensuring consistency and clarity in the legal framework governing financial markets. The geographic and jurisdictional reach of this Act is national, applying uniformly across Australia. The Act does not specify exclusions, exemptions, or thresholds, but its application may be further defined or restricted through subordinate instruments, such as class orders or regulations, issued under the authority of the Act.
Key Provisions
The Australian Securities and Investments Commission has enacted a variation to Class Order [00/343] pursuant to paragraph 655A(1)(b) of the Corporations Act 2001. The primary operative sections of this variation concern specific textual changes within the order to reflect legislative updates. For instance, section 1 of the variation requires the omission of the word "Law" from the heading and its substitution with "Act 2001". Similarly, section 2 mandates that the phrase "Corporations Law (the 'Law')" be replaced with "Corporations Act 2001 (the 'Act')" and the word "Law" be substituted with "Act" in its third and fourth occurrences. The changes also include the substitution of "business rules" with "operating rules" and "securities exchange on a stock market of" with "prescribed financial market on" in various sections of the order.
This variation imposes specific obligations and requirements on the entities governed by the Act. The entities must ensure that their internal documents and references align with the updated terminology as specified in the variation. This includes updating any internal policies, guidelines, or external communications that reference the repealed terms to comply with the new wording. The entities must also ensure that their compliance procedures are updated to reflect these changes, which may involve revising internal controls, training staff, and updating systems to accommodate the new terminology.
The Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance with the variation. However, non-compliance with the Corporations Act 2001 generally can lead to various enforcement actions by the Australian Securities and Investments Commission. These may include administrative penalties, fines, and legal proceedings that could result in significant financial and reputational damage to the entities involved. The maximum penalties for breaches of the Corporations Act 2001 can vary widely depending on the nature and severity of the breach, but they can include substantial fines and potential imprisonment for individuals found guilty of criminal offences under the Act.