Australian Securities and Investments Commission
Corporations Law
Paragraph 601QA(1)(a) and Subsection 1069(3) - Variation
Pursuant to paragraph 601QA(1)(a) of the Corporations Law (the “Law”), the Australian Securities and Investments Commission (the “Commission”) hereby varies ASIC Class Order [98/55]:
1. by inserting after the words “the trust established under the deed” in paragraph 5(b), first sentence, the word “originally”;
2. by replacing the words “BT Securities Limited” in paragraph 5(b)(i), first line, with the words “the trustee for the purposes of the 1994 Deed”; and
3. by replacing the words “BT Securities Limited” in paragraph 5(b)(i)(B) with the words “the trustee for the purposes of the 1994 Deed”.
And pursuant to subsection 1069(3) of the Law as in force under section 1454 of the Law, the Commission hereby varies ASIC Class Order [CO 97/548]:
1. by inserting after the words ““the trust established under the deed” in paragraph 2, first sentence, the word “originally”;
2. by replacing the words “BT Securities Limited” in paragraph 2(a), first line, with the words “the trustee for the purposes of the 1994 Deed”; and
3. by replacing the words “BT Securities Limited” in paragraph 2(a)(ii) with the words “the trustee for the purposes of the 1994 Deed”.
Dated this 18th day of August 1999
Signed by Brendan Byrne,
as delegate of the Australian Securities and Investments Commission
Overview
The Australian Securities and Investments Commission (ASIC) has amended certain class orders under the Corporations Law in 1999 to address discrepancies in the identification and responsibilities of trustees within trusts established under specific deeds. This legislative instrument, F2006B01314, was enacted to ensure that the roles and obligations of trustees are accurately reflected in the legal documentation, thereby enhancing transparency and compliance within the financial sector. The amendments were made pursuant to the authority granted by the Corporations Law, specifically paragraphs 601QA(1)(a) and subsection 1069(3), and were signed by Brendan Byrne as a delegate of ASIC on 18 August 1999. The overarching policy objective is to maintain the integrity and clarity of the legal framework governing financial trusts, ensuring that stakeholders are clearly informed of their roles and duties.
Scope and Application
The Australian Securities and Investments Commission Corporations Law, as enacted, applies to corporations, trustees, and certain individuals involved in corporate activities within Australia, including those managing trusts under corporate deeds. The specific legislative instrument F2006B01314 amends the ASIC Class Orders [98/55] and [CO 97/548], which are designed to regulate and standardise certain procedures and disclosures in corporate trust arrangements. The amendments target the replacement of references to "BT Securities Limited" with "the trustee for the purposes of the 1994 Deed" in various specified paragraphs, thereby clarifying the roles and responsibilities of trustees under the relevant deeds. These changes have a national reach, applying to entities and individuals operating under the Corporations Law across all Australian jurisdictions. The amendments do not explicitly state exclusions, exemptions, or thresholds, but they are intended to refine the interpretation and application of existing regulatory frameworks concerning corporate trusts. The Commission retains the authority to further extend or restrict the application of these amendments through subordinate instruments.
Key Provisions
The Australian Securities and Investments Commission (ASIC) has amended two existing ASIC Class Orders through the legislative instrument F2006B01314. The amendments are made pursuant to paragraph 601QA(1)(a) and subsection 1069(3) of the Corporations Law. Specifically, ASIC Class Order [98/55] and ASIC Class Order [CO 97/548] have been altered by inserting the word “originally” after “the trust established under the deed” in relevant paragraphs, and by replacing references to “BT Securities Limited” with “the trustee for the purposes of the 1994 Deed”. These changes appear to clarify the role of the trustee in the context of the trusts established under the specified deeds.
Under the amended Class Orders, the obligations and requirements imposed on the parties or entities governed by these orders are more clearly defined. The insertion of the word “originally” helps to specify the initial establishment of the trust, while the substitution of “the trustee for the purposes of the 1994 Deed” aims to ensure that all references to the trustee are consistent and accurate. This will likely assist trustees and other involved parties in understanding their roles and responsibilities under the trusts in question.
In terms of consequences for non-compliance, the legislative instrument does not explicitly outline offences, penalties, or civil/criminal consequences for breaches of the amended Class Orders. However, it is important to note that failing to comply with regulations and orders issued by ASIC can potentially lead to enforcement actions. Such actions may include fines, legal proceedings, or other regulatory sanctions under the Corporations Law. The precise penalties would depend on the nature and severity of the breach, as well as any relevant provisions in the Corporations Law. The maximum penalties for breaches of the Corporations Law can be significant, reflecting the importance of adhering to regulatory requirements.