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 [00/222] by:
- omitting from the heading the word "Law" and substituting the words "Act 2001";
- omitting from the introductory paragraph the words "Corporations Law (the Law)" and substituting the words "Corporations Act 2001 (the "Act")";
- omitting from paragraph 1 under the heading "First exemption" the word "Law" and substituting the word "Act ";
- omitting from paragraph 3 under the heading "First exemption" the word "Law" and substituting the word "Act ";
- omitting from paragraph 1 under the heading "Second exemption" the word "Law" and substituting the word "Act ";
- omitting from paragraph 1 under the heading "Third exemption" the word "Law" and substituting the word "Act ";
- omitting from paragraph 2 under the heading "'Third exemption" the word "Law" and substituting the word "Act ";
- omitting from paragraph 1 under the heading "Fourth exemption" the word "Law" and substituting the word "Act ";
- omitting from paragraph 3 under the heading "Fourth exemption" the word "Law" and substituting the word "Act ";
- omitting paragraph 4 under the heading "Interpretation" and substituting the following text:
"4. "listed securities" means securities listed for quotation on a prescribed financial market."
Dated this 6th day of March 2002
Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission
Overview
The Financial Services Reform Act 2001 was enacted by the Parliament of Australia to modernise and streamline the financial services sector in Australia, addressing gaps and inconsistencies in the existing legislative framework. This Act aimed to create a more coherent and effective regulatory environment by consolidating various financial services laws into a single Act, the Corporations Act 2001. The policy objective was to enhance investor protection, maintain market integrity, and promote confidence in the financial system. The Australian Securities and Investments Commission (ASIC) was tasked with varying Class Order [00/222] under the authority of the Corporations Act 2001 to reflect the changes brought about by the new legislation, ensuring consistency and alignment with the updated legal terminology. This variation was effective from the commencement of Schedule 1 to the Financial Services Reform Act 2001.
Scope and Application
The Australian Securities and Investments Commission Corporations Act 2001, particularly under subsection 741(1), applies to a broad range of entities, including companies, limited partnerships, and trustees of registered managed investment schemes. The legislation governs corporate conduct, financial transactions, and securities markets within Australia, encompassing activities such as issuing securities, mergers, and takeovers. This Act extends to the entire Commonwealth, with its provisions applicable nationwide. The scope of the Act is further extended through subordinate instruments, which may impose additional regulations or clarifications to ensure comprehensive oversight and compliance. Certain exemptions and thresholds apply to specific entities or transactions, such as small proprietary companies and certain types of financial products, which may be excluded from certain regulatory requirements. The amendments made under the Financial Services Reform Act 2001, effective from the commencement of Schedule 1, adjust references from the former "Corporations Law" to the current "Corporations Act 2001," ensuring alignment with the updated legislative framework.
Key Provisions
The Australian Securities and Investments Commission (ASIC) has made amendments to Class Order [00/222] under the Corporations Act 2001 (the "Act") as per subsection 741(1). These amendments, effective from the commencement of Schedule 1 to the Financial Services Reform Act 2001, primarily involve updating references from "Corporations Law" to "Corporations Act 2001". Specifically, the changes include replacing instances of the word "Law" with "Act" in various sections, such as the headings and paragraphs under "First exemption", "Second exemption", "Third exemption", and "Fourth exemption". Additionally, the definition of "listed securities" has been updated to clarify that it refers to securities listed for quotation on a prescribed financial market. These modifications aim to ensure that the Class Order accurately reflects the current legislative framework.
The Act imposes several obligations on parties and entities governed by this Class Order. Firstly, entities must ensure that any references to "Corporations Law" in their documentation, disclosures, or compliance materials are updated to "Corporations Act 2001". This is crucial for maintaining compliance with the updated legislative requirements. Additionally, entities must ensure that their internal policies and procedures reflect the new definitions and terminology, particularly in relation to the term "listed securities". This includes updating any relevant disclosures, compliance frameworks, and reporting obligations to align with the amended Class Order.
Failure to comply with the updated Class Order may result in various legal consequences. While the specific penalties for non-compliance are not detailed in the provided excerpt, the Act generally allows for enforcement actions against entities that do not adhere to its provisions. These actions can include administrative penalties, fines, and potential legal proceedings. Additionally, non-compliance may lead to reputational damage, loss of investor confidence, and other business-related consequences. Therefore, it is imperative for entities to ensure they are fully compliant with the amended Class Order to avoid any adverse outcomes.