Australian Securities and Investments Commission
Corporations Act 2001 - Subsection 655A(1) – Variation
Under subsection 655A(1) 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 [00/2338] 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 occurring) and substituting the word "Act";
3. omitting from paragraph 621(3A)(b) as notionally inserted into the Act by the class order, the words "relevant securities exchange" and substituting the words "operator of the relevant approved financial market";
4. omitting from paragraph 621(4A)(a) as notionally inserted into the Act by the class order, the words "stock market of the relevant securities exchange" and substituting the words "relevant approved financial market";
5. omitting from subparagraph 621(4A)(c)(ii) as notionally inserted into the Act by the class order, the words "securities exchange that has a stock market" and substituting the words "approved financial market"; and
6. omitting subparagraph 621(4B) as notionally inserted into the Act by the class order and substituting:
"(4B) For the purposes of subsections (3) to (4A):
(a) "approved financial market" in relation to quoted securities that the bidder offers as consideration means a prescribed financial market and also:
(i) the main board (unless otherwise expressly stated) of any of the following financial markets: 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; and
(ii) NASDAQ National Market; and
(b) "quoted security" includes a security quoted on an approved financial market.".
Dated this 3rd 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 (ASIC) has introduced a legislative variation under subsection 655A(1) of the Corporations Act 2001. This amendment, effective from the commencement of Schedule 1 to the Financial Services Reform Act 2001, updates Class Order [00/2338] to align with the changes brought about by the transition from the Corporations Law to the Corporations Act 2001. The variation involves several key substitutions and omissions to accurately reflect the new legal framework. For instance, it replaces references to the "Corporations Law" with "Corporations Act 2001" and modifies terms such as "relevant securities exchange" to "operator of the relevant approved financial market". This legislative update aims to ensure consistency and clarity in the application of the law, thereby enhancing the regulatory environment for financial markets and securities in Australia.
Scope and Application
The legislative instrument F2006B01606, specifically varying Class Order [00/2338] under subsection 655A(1) of the Corporations Act 2001, pertains to modifications made to terminology and definitions related to financial markets and securities exchanges within the Act. The changes, effective from the commencement of Schedule 1 to the Financial Services Reform Act 2001, replace references to "Corporations Law" with "Corporations Act 2001" and redefine certain terms such as "relevant securities exchange" to "operator of the relevant approved financial market." This variation applies to the entities and individuals subject to the Corporations Act 2001, particularly those involved in financial transactions and dealings in quoted securities. Geographically, the Act applies on a national level across Australia, as it is a Commonwealth Act. Notably, the instrument also introduces the concept of "approved financial market," which includes specific international exchanges, thereby extending the jurisdictional scope beyond Australia to include major global financial markets. There are no explicit exclusions or exemptions stated in the provided text, and any further application or restrictions would be governed by subordinate instruments or additional legislative provisions.
Key Provisions
The key provision of this legislative instrument, subsection 655A(1) of the Corporations Act 2001, involves the variation of Class Order [00/2338] by the Australian Securities and Investments Commission (ASIC). The changes focus on updating terminology to reflect legislative updates, particularly the transition from "Corporations Law" to "Corporations Act 2001." For instance, the heading and introductory words are modified to replace "Corporations Law" with "Corporations Act 2001," and "Law" with "Act" in the relevant sections (subparagraphs 1(a) and 1(b)). Additionally, terms such as "relevant securities exchange" are replaced with "operator of the relevant approved financial market" and similar updates are made in subparagraphs 621(3A)(b), 621(4A)(a), and 621(4A)(c)(ii) (subparagraphs 3, 4, and 5).
The Act imposes obligations on the parties involved by mandating that they adhere to the updated terminology and definitions as outlined in the variation. These changes are intended to ensure consistency and clarity in legal documentation and proceedings, particularly in relation to financial markets and securities. The changes also reflect a shift in regulatory terminology, which is important for compliance and interpretation of the Act by legal practitioners and entities governed by it.
Failure to comply with the provisions of the Act, as varied by this legislative instrument, could result in legal consequences. While the specific penalties are not detailed in the instrument, general provisions of the Corporations Act 2001 may apply. These could include fines, imprisonment, or other civil and criminal sanctions, depending on the nature and severity of the breach. The exact penalties would be determined in the context of the specific breach and any additional provisions or case law that applies.
In summary, the legislative instrument varies Class Order [00/2338] to align terminology with the Corporations Act 2001. This includes updating references to financial markets and securities to ensure consistency and clarity. The obligations under this variation require adherence to the new terminology, and failure to comply could result in legal penalties as stipulated under the broader framework of the Corporations Act 2001.