Australian Securities and Investments Commission
Corporations Act 2001 - Paragraph 601QA(1)(b) and Subsection 741(1) - Variation
Under paragraph 601QA(1)(b) and 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 [00/199] 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 the second paragraph the word “Law” and substituting the word “Act”;
4. omitting from paragraph 601FL(f) as notionally inserted into the Act by paragraph 1 of the class order the words “of the dealers license of the responsible entity or on the revocation”; and
5. omitting from the words following paragraph 7 of the class order the word “Law” (twice occurring) and substituting the word “Act”.
Dated this 8th day of March 2002
Signed by Brendan Byrne
as delegate of the Australian Securities and Investments Commission
Overview
The Australian Securities and Investments Commission Corporations Act 2001 was enacted to address gaps in the regulatory framework concerning financial services and corporate governance in Australia. This legislation was introduced to provide a comprehensive legal structure for the regulation of financial markets and entities, ensuring transparency, efficiency, and consumer protection. The Act was enacted by the Parliament of Australia, with the intent to consolidate and modernise Australia's corporate and financial services laws, as well as to establish the Australian Securities and Investments Commission (ASIC) as the primary regulatory body. The policy objective of this Act is to foster fair and transparent markets, as well as to protect investors and consumers within the financial system.
Scope and Application
The Australian Securities and Investments Commission Corporations Act 2001 applies to a wide range of entities, including corporations, managed investment schemes, and financial products providers. It aims to regulate conduct and transactions in the financial markets to protect consumers and ensure market integrity. The Act applies nationally across Australia, covering Commonwealth, state, and territory jurisdictions, thus ensuring uniform regulatory standards. Certain entities and activities may be exempt from specific provisions depending on thresholds or exemptions set within the Act or related subordinate legislation. For instance, small proprietary companies might be subject to less stringent reporting requirements. The Act also allows for further specification and adaptation of its application through subordinate instruments, such as regulations or class orders, which can introduce additional rules or modify existing ones to address emerging issues or clarify existing provisions. These instruments extend or restrict the application of the Act by providing detailed guidelines and standards that must be adhered to by the regulated entities and individuals.
Key Provisions
The Australian Securities and Investments Commission has varied Class Order [00/199] under paragraph 601QA(1)(b) and subsection 741(1) of the Corporations Act 2001. This legislative instrument, dated 8th March 2002 and signed by Brendan Byrne as delegate of ASIC, brings into effect changes from the commencement of Schedule 1 to the Financial Services Reform Act 2001. The primary changes involve the substitution of specific terms within the Class Order. The heading now includes "Act 2001" instead of "Law," and the reference to "Corporations Law" is replaced with "Corporations Act 2001." Additionally, references to "Law" in the first and second paragraphs are substituted with "Act," and the phrase "of the dealers license of the responsible entity or on the revocation" is omitted from paragraph 601FL(f). Finally, instances of "Law" in subsequent text are replaced with "Act."
These changes are made to ensure consistency and alignment with the new legislative framework established by the Corporations Act 2001. The variations are primarily textual and aim to update the Class Order to reflect the new legal terminology and structure. This reflects a broader effort to streamline and modernise the regulatory language, facilitating easier interpretation and application by stakeholders.
Under this Act, the obligations on the parties governed by the Class Order include ensuring that all documentation, references, and internal processes align with the updated terminology as specified. This means that any references to the "Corporations Law" must be updated to "Corporations Act 2001" in all relevant documents and communications. This change is crucial for compliance with the regulatory requirements and for maintaining the integrity of legal documentation.
Failure to comply with these requirements may result in civil or administrative penalties. Although the specific penalties are not detailed within this legislative instrument, breaches of similar provisions under the Corporations Act 2001 can lead to fines, legal action, or other regulatory sanctions. It is essential for entities and individuals governed by this Class Order to ensure timely updates to their records and practices to avoid any potential repercussions. The exact consequences of non-compliance would depend on the specific circumstances and the discretion of the regulatory authorities.