Australian Securities and Investments Commission
Corporations Act 2001 - Subsection 741(1) - Variation
Under subsection 741(1) of the Corporations Act 2001 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 [00/181] by:
- omitting from the heading the word "Law" and substituting the words "Act 2001";
- omitting from the introductory words, the words "Corporations Law (the "Law")" and substituting the words "Corporations Act 2001 (the "Act")";
- omitting from paragraph 1 the word "Law" (wherever occurring) and substituting the word "Act";
- omitting from paragraph 2:
(a) the word "Law" and substituting the word "Act"; and
(b) the word "Australia" and substituting the words "this jurisdiction";
5. omitting from each of paragraphs (a) and (b) of Schedule A the word "exchange" and substituting the word "market";
6. omitting from paragraph (a) of Schedule B the word "exchange" and substituting the word "market";
7. omitting from paragraph (b) of Schedule B:
(a) the word "Australia" and substituting the words "this jurisdiction"; and
(b) the word "exchange" and substituting the word "market";
8. omitting from subparagraph (c)(i) of Schedule B the word "exchange" and substituting the word "market";
9. omitting from subsubparagraph (c)(i)(A) of Schedule B the words "that approved foreign exchange's requirements;" and substituting the words "the operating rules of that approved foreign market;";
10. omitting from subparagraph (c)(ii) of Schedule B the words "an Australian agent" and substituting the words "an agent resident in this jurisdiction";
11. omitting from subparagraph (d) of Schedule B the words "exchange" and substituting the word "market"; and
12. omitting all the text between the heading "Interpretation" and the date of the instrument and substituting the following text:
"For the purposes of this exemption an "approved foreign market" means:
2
(a) American Stock Exchange, Deutsche Borse, Euronext Amsterdam, Euronext Paris, Italian Exchange, Kuala Lumpur Stock Exchange (Main and Second Boards), London Stock Exchange, New York Stock Exchange, New Zealand Stock Exchange, Singapore Exchange, Stock Exchange of Hong Kong, Swiss Exchange, Tokyo Stock Exchange or Toronto Stock Exchange, provided that unless otherwise expressly stated, if any such market involves more than one board on which securities are quoted, securities shall only be taken to be quoted on that market if quoted on the main board of that market; and
(b) NASDAQ National Market."
Note: In this instrument, "this jurisdiction" means Australia: Act, ss 5 and 9 (definition of "this jurisdiction")."
Dated this 2nd 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 was enacted to provide a comprehensive framework for financial markets and entities in Australia, addressing gaps in the previous Corporations Law and aiming to modernise and streamline financial regulations. This Act was introduced by the Parliament of Australia to better regulate corporate activities and financial markets, ensuring greater transparency, accountability, and investor protection. The policy objective was to enhance the integrity and efficiency of the Australian financial system, thereby fostering investor confidence and economic growth. The legislative instrument F2006B01387, dated 2nd March 2002, was issued by the Australian Securities and Investments Commission under the authority of the Financial Services Reform Act 2001, making specific amendments to Class Order [00/181]. This instrument aimed to update references from the old "Corporations Law" to the new "Corporations Act 2001", ensuring consistency and clarity in the regulatory framework. The changes included substituting terms such as "Law" with "Act" and "exchange" with "market", reflecting the updated legislative terminology and scope.
Scope and Application
The Australian Securities and Investments Commission (ASIC) has varied Class Order [00/181] under subsection 741(1) of the Corporations Act 2001, reflecting the transition from the former Corporations Law to the new Corporations Act 2001. This legislative instrument applies to entities and persons involved in financial transactions and operations regulated by the ASIC within Australia, ensuring that the references to the previous law are updated to align with the new legal framework. The amendments involve substituting specific terms throughout the order, such as replacing "Law" with "Act" and "exchange" with "market," thereby modernising the terminology and improving clarity. The revised Class Order applies to approved foreign markets listed, including major global exchanges such as the New York Stock Exchange and the Tokyo Stock Exchange, among others. These changes are designed to maintain regulatory coherence and ensure that the financial industry adheres to the updated legislative standards. The instrument does not explicitly outline exclusions or exemptions but implies that the updated terminology will facilitate smoother application and enforcement of the regulations within the financial sector.
Key Provisions
The key operative sections of this legislative instrument involve the variation of Class Order [00/181], which pertains to the operation of approved foreign markets in Australia. This is done under subsection 741(1) of the Corporations Act 2001 and reflects the changes introduced by the Financial Services Reform Act 2001. The main changes include substituting the word "Act" for "Law" and "market" for "exchange" throughout the order, as well as updating the definition of "approved foreign market" to include NASDAQ National Market and clarifying that securities on multi-board markets must be quoted on the main board (subsections 1 to 12).
The Act imposes certain obligations on the entities governed by it, primarily by updating terminology to ensure consistency with the current legislative framework. This includes the substitution of "Act" for "Law" and "market" for "exchange", which ensures that the language used in Class Order [00/181] aligns with the Corporations Act 2001. Furthermore, the detailed definition of "approved foreign market" helps to clarify which markets are recognised and regulated under this order. These updates aim to maintain regulatory coherence and ensure that the terminology used in legal documents accurately reflects current legislative terminology and standards.
In terms of legal consequences, the Act does not explicitly outline specific offences or penalties for non-compliance with these variations. However, non-compliance with the Corporations Act 2001 or its associated regulations could lead to various legal consequences, including fines, imprisonment, or other penalties as prescribed by the relevant legislation. The precise penalties would depend on the nature and severity of the breach, as well as any other applicable laws and regulations. The updated terminology is intended to ensure that entities governed by the Act are fully aware of their obligations and can comply with the regulatory requirements effectively.
This legislative instrument is a technical update that aims to harmonise the language and definitions used in Class Order [00/181] with the current legislative framework. By making these changes, the Australian Securities and Investments Commission seeks to ensure that the regulatory language is accurate and consistent, thereby facilitating better compliance and enforcement. It is important for entities governed by this Act to stay informed about these updates to ensure ongoing compliance with their regulatory obligations.