Australian Securities and Investments Commission
Corporations Act 2001 — Paragraph 655A(1)(b) and 673(1)(b) — Variation
Under paragraphs 655A(1)(b) and 673(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 [00/455] 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 (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 subparagraph 609(9A)(a)(ii)(B) as notionally inserted into the Act by
the class order, and renumbering subparagraphs (C) and (D) as "(B)" and "(C)"
respectively;
4. omitting from the paragraph beginning “And pursuant to” the word “Law” (twice occurring) and substituting the word “Act”;
5. omitting from paragraph 671B(15) as notionally inserted into the Act by the class order:
(a) the words “each relevant securities exchange” and substituting the words “the operator of each relevant financial market”; and
(b) the word “Australia” and substituting the words “this jurisdiction”; and
6. adding before the date of the class order the following note:
“Note: In this instrument, “this jurisdiction” means Australia: Act, ss 5 and 9 (definition of “this jurisdiction”).”.
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 Commission Corporations Act 2001, enacted by the Australian Parliament, was introduced to address the need for a comprehensive and modern legal framework governing corporate activities, financial markets, and investment schemes. This legislation aimed to enhance the integrity and efficiency of the financial system, protect investors, and maintain public confidence in the Australian economy. The Financial Services Reform Act 2001 was a significant part of this reform, aiming to bring the Corporations Act 2001 into line with international standards and address gaps in the existing legal framework. One such legislative instrument, F2006B01618, issued under the authority of the Australian Securities and Investments Commission, further refined the Corporations Act 2001 by making specific amendments to Class Order [00/455]. This particular instrument sought to update references within the class order to reflect the transition from the old Corporations Law to the new Corporations Act 2001, ensuring consistency and clarity in the legal provisions.
Scope and Application
The Australian Securities and Investments Commission Corporations Act 2001 legislative instrument modifies Class Order [00/455], impacting the scope and application of the original legislative framework under the Act. This variation applies to entities and persons governed by the Corporations Act 2001, encompassing various industries and transactions where the Act's stipulations are relevant. The changes made to the class order affect the terminology and references within the legislative text, ensuring consistency and clarity in the application of the Act's provisions. The geographic reach of this legislation is national, applying across Australia, as specified in sections 5 and 9 of the Act. Notably, the instrument does not introduce any exclusions or exemptions but rather refines the existing legislative order to adapt to the updated legal nomenclature following the Financial Services Reform Act 2001. The application and scope of this legislative instrument may be further extended or restricted through subordinate instruments as deemed necessary by the Australian Securities and Investments Commission.
Key Provisions
The main operative sections of this legislative instrument are paragraphs 655A(1)(b) and 673(1)(b) of the Corporations Act 2001 (the “Act”). These sections provide the basis for the Australian Securities and Investments Commission (ASIC) to vary Class Order [00/455]. The variation involves several amendments to the text, including the substitution of the word “Law” with “Act” throughout the order and the omission of certain subparagraphs. Additionally, it involves replacing references to “Australia” with “this jurisdiction” and adding a note to clarify the definition of “this jurisdiction” as it pertains to the Act.
Under the Act, the primary obligation imposed by this legislative instrument on the entities governed by Class Order [00/455] is to comply with the specified textual amendments. This includes ensuring that any references to the former Corporations Law are updated to reflect the current Corporations Act 2001. Additionally, entities must adjust their practices to account for the renumbered subparagraphs and the substitution of specific terms such as “this jurisdiction” for “Australia” where relevant. These changes are necessary to align with the updated legislative framework and maintain consistency with the current legal language.
In terms of consequences for non-compliance, the Act does not explicitly detail offences, penalties, or specific civil or criminal consequences for breaching these textual amendments within Class Order [00/455]. However, any failure to comply with the Corporations Act 2001 or its related regulations could potentially lead to broader regulatory actions by ASIC. These actions may include enforcement measures, fines, or other penalties as prescribed by the overarching provisions of the Act, which could vary significantly depending on the nature and severity of the non-compliance. It is crucial for entities governed by Class Order [00/455] to ensure they adhere to these textual changes to avoid any regulatory repercussions.