Australian Securities and Investments Commission
Corporations Act 2001 — Subsection 741(1) — Variation
Under subsection 741(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 [00/1092] 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 (“the Law”)” and substituting the words “Corporations Act 2001 (the “Act”)”;
3. omitting from Schedule A, the words “a stock market of ASX” and substituting the words “the financial market operated by Australian Stock Exchange Limited”;
4. omitting from Schedule B the word “Law” (thrice appearing) and substituting the word “Act”; and
5. omitting from Schedule D:
(a) the word “ASX’s” and substituting the words “Australian Stock Exchange Limited’s”; and
(b) the word “Law” and substituting the word “Act”.
Dated this 5th 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 (F2006B01619) was enacted to streamline and modernise the Australian securities and investment regulatory framework. This legislative instrument was introduced to address the need for a more coherent and effective regulatory environment in response to the changing landscape of financial markets. The Act was enacted by the Parliament of Australia with the policy objective of enhancing the protection of investors, ensuring financial markets are fair, transparent, and efficient. This legislative instrument specifically amends Class Order [00/1092] to reflect the transition from the former Corporations Law to the new Corporations Act 2001, ensuring consistency and alignment with the updated legal framework.
Scope and Application
The Australian Securities and Investments Commission Corporations Act 2001, as amended by the Financial Services Reform Act 2001, applies broadly to a range of entities and individuals involved in corporate activities within Australia. It covers companies, limited partnerships, and other entities incorporated or registered under the Act, as well as officers, directors, and other participants in the corporate environment. The legislation governs corporate conduct, including financial reporting, disclosure requirements, and corporate governance standards. The Act's jurisdictional reach is national, affecting entities and individuals operating across all states and territories in Australia. Notably, the Act may also extend to certain foreign entities and individuals whose activities impact Australian markets. While the Act generally applies to all qualifying entities, there are specific exclusions and exemptions, such as for small proprietary companies and certain types of unincorporated associations, which are detailed in subordinate instruments and regulations. These instruments often refine the application of the Act, specifying thresholds, conditions, and further classifications that determine which entities and activities are subject to the provisions of the Corporations Act.
Key Provisions
The legislative instrument under consideration involves changes to Class Order [00/1092] as stipulated in subsection 741(1) of the Corporations Act 2001 (the “Act”). The primary purpose of these changes is to update references within the Class Order to reflect the transition from the former Corporations Law to the current Corporations Act 2001. Specifically, the instrument modifies the heading of the Class Order by omitting the term "Law" and replacing it with "Act 2001" (subsection 1). It further amends the first paragraph by removing the phrase "Corporations Law" and replacing it with "Corporations Act 2001" (subsection 2). Additionally, the term "stock market of ASX" is replaced with "the financial market operated by Australian Stock Exchange Limited" in Schedule A (subsection 3). The word "Law" is substituted with "Act" in Schedule B, where it appears thrice (subsection 4). Finally, in Schedule D, the word "ASX’s" is replaced with "Australian Stock Exchange Limited’s," and the term "Law" is replaced with "Act" (subsection 5).
The obligations imposed by these changes are primarily administrative and require compliance by entities subject to the Class Order. The Australian Securities and Investments Commission, acting under the authority granted by the Corporations Act 2001, mandates that all relevant documents and references within Class Order [00/1092] must be updated to reflect the new terminology. This includes ensuring that all references to the former Corporations Law are accurately replaced with references to the current Corporations Act 2001 and that all mentions of ASX’s stock market are appropriately altered to refer to the financial market operated by Australian Stock Exchange Limited. These amendments are designed to maintain consistency and clarity within the regulatory framework governing financial markets.
The legislative instrument does not explicitly outline specific offences, penalties, or consequences for non-compliance with these amendments. However, it is reasonable to infer that failure to comply with the requirements set forth in the Act could potentially lead to regulatory action by the Australian Securities and Investments Commission. Such actions may include fines, administrative penalties, or other enforcement measures deemed appropriate by the Commission. The exact penalties would be determined in accordance with the broader provisions of the Corporations Act 2001 and any relevant subsidiary legislation. It is crucial for entities governed by Class Order [00/1092] to ensure they update their documentation and practices to align with these legislative changes to avoid any potential repercussions.