Australian Securities and Investments Commission
Corporations Act 2001 — Subsections 341(1), 655A(1), 669(1) and 673(1) — Variation
Under subsections 341(1), 655A(1), 669(1) and 673(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 [00/2449] by:
1. omitting from the heading the word “Law” and substituting the words “Act 2001”;
2. omitting from the first paragraph the words “Corporations Law (Law)” and substituting the words “Corporations Act 2001 (the “Act”)”;
3. omitting from the Schedule B:
(a) the word “Law” and substituting the word “Act”; and
(b) the words “securities exchange” and substituting the words “market operator”; and
4. omitting from paragraph 3 of Schedule C the word “Law” (twice occurring) and substituting the word “Act”.
Dated this 4th 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 in 2001, was introduced to modernise and consolidate Australian corporate law, addressing gaps in the previous regulatory framework and providing a more streamlined and accessible legal environment for businesses. The Act was enacted by the Parliament of Australia and its policy objective was to provide a unified legislative framework for corporations, enhancing investor protection and corporate governance. The legislative instrument in question modifies Class Order [00/2449] to reflect the transition from the old Corporations Law to the new Corporations Act 2001, ensuring consistency and clarity in the legal references within the order. The changes include substituting references to the former law with the new act and updating terminology to align with the new legislative framework. This legislative instrument ensures that the Class Order remains effective and relevant following the significant reforms introduced by the Corporations Act 2001.
Scope and Application
The Australian Securities and Investments Commission Corporations Act 2001, specifically under subsections 341(1), 655A(1), 669(1) and 673(1), applies to entities and persons involved in the operation of financial markets within Australia. This legislation affects corporations, market operators, and other entities engaged in financial transactions that are regulated under the Act. The scope of this Act extends across the Commonwealth of Australia, encompassing all states and territories. The Act aims to maintain integrity and transparency in the financial sector by setting out rules and regulations governing the conduct of market participants, financial services providers, and the securities markets. It is important to note that this Act can be extended or modified through subordinate instruments, which may provide further detail or adjustments to the provisions set out in the principal Act. Any exclusions, exemptions, or specific thresholds are defined within the Act itself or through subsequent legislative instruments.
Key Provisions
The Australian Securities and Investments Commission has exercised its authority under subsections 341(1), 655A(1), 669(1) and 673(1) of the Corporations Act 2001 (the “Act”) to vary Class Order [00/2449]. This variation became effective from the commencement of Schedule 1 to the Financial Services Reform Act 2001. The primary changes include modifying the heading of the Class Order by removing the word “Law” and replacing it with “Act 2001.” In the first paragraph, the words “Corporations Law (Law)” are replaced with “Corporations Act 2001 (the “Act”).” The Schedule B is amended by replacing the word “Law” with “Act” and substituting “securities exchange” with “market operator.” Additionally, the word “Law” is omitted twice in paragraph 3 of Schedule C and replaced with “Act.”
The obligations imposed by these variations include updating references within the Class Order to align with the new terminology and provisions of the Corporations Act 2001. This ensures that all references to the Act are consistent and reflect the updated legislative framework. Parties and entities governed by this Class Order must ensure that their documentation and practices comply with these changes. This includes modifying internal documents, communications, and any relevant legal proceedings to use the updated terminology and reflect the legislative changes.
Breaching these provisions can lead to several consequences. While the specific penalties are not detailed in the excerpt, breaches of the Corporations Act 2001 can generally result in both civil and criminal penalties. Civil penalties may include fines, compensation orders, and other financial penalties. Criminal penalties can include imprisonment, fines, or both, depending on the severity of the breach and the specific subsections of the Act that are contravened. The maximum penalties for contraventions of the Corporations Act 2001 can vary widely, with some offences carrying substantial financial penalties and significant imprisonment terms. It is essential for entities and individuals to adhere to these legislative requirements to avoid potential legal repercussions.