Australian Securities and Investments Commission
Corporations Act 2001 — Paragraphs 601QA(1)(a), 992B(1)(a) and 1020F(1)(a) — Variation
Under paragraphs 601QA(1)(a), 992B(1)(a) and 1020F(1)(a) of the Corporations Act 2001, the Australian Securities and Investments Commission varies Class Order [CO 02/186] by:
1. in the introductory words of the first paragraph:
(a) after “Commission”, inserting “(“ASIC”)”; and
(b) omitting “(as defined, from time to time, in By Law G.1 of SFE Corporation Limited or Sydney Futures Exchange Limited)”;
2. in subparagraph (a) of the first paragraph, omitting “SFE Corporation Limited or Sydney Futures Exchange Limited” and substituting “SFE”;
3. in subparagraph (b) of the first paragraph, omitting “SFE Corporation Limited or Sydney Futures Exchange Limited” and substituting “ASIC”;
4. in Schedule A, omitting all of the words following “By Laws” and substituting “who operated a Managed Discretionary Account on 10 March 2004.”;
5. in Schedule B:
(a) omitting “ Prior to 11 March 2004:” and substituting: “Before the earlier of 11 December 2004 or when the Participant lodges with ASIC a notice for the purposes of subparagraph 1.6(c) of Class Order [CO 04/194]:”; and
(b) omitting “in accordance with the By-Laws and guidelines of SFE Corporation Limited or Sydney Futures Exchange Limited.” and substituting:
“as far as practicable, in accordance with:
(c) the By-Laws and guidelines of SFE as modified or varied as set out in Schedule C; and
(d) any act done (for example, an approval or determination) under those By-Laws or guidelines by the SFE or an organ of the SFE that would have been applicable to such operation or offers by the Participant had it occurred on 10 March 2004.”; and
6. inserting after Schedule B:
“ SCHEDULE C
The By-Laws and guidelines of SFE apply as if:
(a) a reference to a “Registered Representative” were a reference to a person who was on 10 March 2004 a “Registered Representative” as defined in the By-Laws; and
(b) a reference to the lodgement of documents (however described) with SFE were a reference to the lodgement of those documents with ASIC.
Interpretation
In this instrument:
(a) “By-Laws” in relation to SFE, means the By-Laws of SFE as in force on 10 March 2004;
(b) “guidelines” in relation to SFE, means the guidelines of SFE as in force on 10 March 2004;
(c) “Managed Discretionary Account” has the meaning given by the By-Laws; and
(d) “SFE” means Sydney Futures Exchange Limited (ACN 000 943 377).”.
Commencement
This instrument commences on 11 March 2004.
Dated this 11th day of March 2004.
Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission
Overview
The Australian Securities and Investments Commission Corporations Act 2001 was enacted to regulate corporate activities and financial markets in Australia, aiming to protect investors and ensure market integrity. This legislative instrument, F2006B01589, was introduced to address specific issues within the financial services sector by modifying Class Order [CO 02/186] under the Corporations Act 2001. This variation was enacted by the Australian Securities and Investments Commission (ASIC), aiming to streamline and clarify the regulatory framework governing financial exchanges and market participants. The instrument updates references to align with current regulatory standards and operational practices, ensuring that the oversight mechanisms are effectively maintained and updated in line with the evolving financial landscape.
Scope and Application
This legislative instrument, F2006B01589, pertains to the Corporations Act 2001, specifically targeting the variation of Class Order [CO 02/186]. It applies to entities and individuals operating Managed Discretionary Accounts as of 10 March 2004, with a primary focus on SFE, now operating under the regulatory oversight of ASIC. The alterations to the Class Order extend the jurisdictional reach to encompass any acts or approvals that would have been applicable if the operations had occurred on the specified date, thereby ensuring consistency and continuity in regulatory standards. The instrument's modifications also reflect the shift in administrative responsibilities from SFE to ASIC, underscoring the Commonwealth's regulatory scope. The changes are effective from 11 March 2004, and the instrument incorporates subordinate modifications to By-Laws and guidelines to align with the new regulatory framework.
Key Provisions
The legislative instrument modifies Class Order [CO 02/186] under the Corporations Act 2001. The main changes include the replacement of references to "SFE Corporation Limited or Sydney Futures Exchange Limited" with "SFE" or "ASIC" as appropriate (601QA(1)(a), 992B(1)(a) and 1020F(1)(a)). The introductory paragraph of the Class Order now includes a reference to "ASIC" and removes the phrase about By Law G.1 of SFE Corporation Limited or Sydney Futures Exchange Limited. In Schedule A, the definition of the class of person subject to the Class Order is updated to reflect that it applies to those who operated a Managed Discretionary Account on 10 March 2004. Schedule B has been revised to specify that certain actions must be taken in accordance with the By-Laws and guidelines of SFE, as modified or varied, and any acts done under those By-Laws or guidelines by SFE or an organ of SFE. Additionally, Schedule C outlines how the By-Laws and guidelines of SFE apply, including how references to "Registered Representative" and the lodgement of documents are to be interpreted.
This Act imposes obligations on parties governed by the modified Class Order, primarily those who operated a Managed Discretionary Account on 10 March 2004. These obligations include adhering to the By-Laws and guidelines of SFE, as modified or varied, and ensuring compliance with any acts done under those By-Laws or guidelines by SFE or an organ of SFE. The modifications also include specific instructions for the lodgement of documents, which must now be done with ASIC instead of SFE. Furthermore, the interpretation section clarifies that "By-Laws" and "guidelines" refer to those in force on 10 March 2004, and "Managed Discretionary Account" is defined as per the By-Laws.
The legislative instrument does not explicitly state any offences, penalties, or civil/criminal consequences for breach. However, non-compliance with the Corporations Act 2001 or the specific requirements of the Class Order could lead to enforcement actions by ASIC, which may include fines, legal proceedings, and other remedies available under the Act. The maximum penalties for breaches of the Corporations Act can vary widely depending on the nature and severity of the breach but may include substantial financial penalties and, in some cases, imprisonment.