Australian Securities and Investments Commission Amendment Regulations 2002 (No. 1)

Overview

The Australian Securities and Investments Commission Amendment Regulations 2002 (No. 1) were enacted to address discrepancies in the list of exchanges to which the Australian Securities and Investments Commission (ASIC) may disclose confidential information. This regulation, issued under Section 251 of the Australian Securities and Investments Commission Act 2001, was made by the Parliamentary Secretary to the Treasurer and is aimed at correcting and updating the list of exchanges listed in Schedule 3 of the Regulations. Specifically, the regulations aim to reinstate a reference to Sydney Futures Exchange Limited and update the reference to Sydney Futures Exchange Clearing House Pty Limited. These amendments are necessary to ensure the accuracy and relevance of the regulatory framework in the context of ongoing financial services reforms, which are aligned with the objectives of the Financial Services Reform Act 2001. The Regulations commenced at 12.02 am on 11 March 2002, immediately following the commencement of the Financial Services Reform Act 2001 and the Australian Securities and Investments Commission Amendment Regulations 2001 (No. 1).

Scope and Application

The Australian Securities and Investments Commission Amendment Regulations 2002 (No. 1) are a set of rules made under the Australian Securities and Investments Commission Act 2001. They serve to amend existing regulations by correcting and updating the list of exchanges to which the Australian Securities and Investments Commission is authorised to disclose confidential information. This includes reinstating a reference to Sydney Futures Exchange Limited and updating the reference to Sydney Futures Exchange Clearing House Pty Limited, ensuring the regulatory framework remains current and accurate. These regulations apply to the Australian Securities and Investments Commission and the listed entities, specifically those exchanges identified in the Schedule of the Regulations. The jurisdictional reach of these regulations is national, as they pertain to the operation of the Australian Securities and Investments Commission, which is a Commonwealth body. The Regulations do not specify any exclusions, exemptions, or thresholds. They commence at 12.02 am on 11 March 2002, aligning with the commencement of the Financial Services Reform Act 2001 and another set of amendment regulations.

Key Provisions

The Australian Securities and Investments Commission Amendment Regulations 2002 (No. 1) (the Regulations) primarily address updates to the list of exchanges where the Australian Securities and Investments Commission (ASIC) can disclose confidential information. Section 1 of the Regulations, utilising the power granted under section 251 of the Australian Securities and Investments Commission Act 2001 (the Act), corrects and updates Schedule 3 of the existing regulations. Specifically, it reinstates a reference to the Sydney Futures Exchange Limited and updates the reference to the Sydney Futures Exchange Clearing House Pty Limited. These updates are necessary to ensure the list remains accurate and reflects current market entities. Under the Act, ASIC is mandated to regulate financial markets and financial services to protect consumers, investors, and creditors. The Regulations impose a specific obligation on ASIC to align its disclosure practices with the updated list of exchanges. This ensures that any confidential information disclosed by ASIC is directed to entities recognised under the regulatory framework, thereby maintaining the integrity and relevance of the disclosure process. Failure to comply with the Regulations could result in legal consequences. Section 13 of the Act outlines various offences related to non-compliance with ASIC regulations, which may include misleading or deceptive conduct, failure to provide necessary information, or unauthorised disclosure of confidential information. The penalties for such offences can be severe, including fines and imprisonment. For instance, individuals found guilty of certain offences may face fines up to $210,000 and/or imprisonment for up to five years, while corporations may incur fines up to $1.05 million. These stringent measures underscore the importance of adhering to the regulatory requirements outlined in the Regulations.