Commonwealth Banks Regulations (Amendment) 1991 No. 55
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 55
ISSUED BY THE AUTHORITY OF THE TREASURER
COMMONWEALTH BANKS ACT 1959
COMMONWEALTH BANKS REGULATIONS (AMENDMENT)
Section 129 of the Commonwealth Banks Act 1959 (the Act) provides that regulations may be made for the purposes of the Act.
The provisions of the Commonwealth Banks Restructuring Act 1990 (the Restructuring Act), once proclaimed, have the effect of converting the Commonwealth Bank into a public company on 17 April 1991.
Subsection 8(3) of the Restructuring Act 1990, which is to commence on 2 April 1991, inserts a definition in the Act. It provides that "Securities Commission" means:
(a) before the date prescribed. the National Companies and Securities Commission; or
(b) on and after the date prescribed, the Australian Securities Commission.
A date was not specified in the definition because of uncertainty over the commencement of operation of the Australian Securities Commission (ASC). As the ASC commenced operation on 1 January 1991, the Regulations specify this date. This will enable the Commonwealth Bank to lodge the necessary documents with the ASC in order to be converted into a public company.
The Regulations are to commence on 2 April 1991. This date is chosen because the new definition mentioned above is also scheduled to commence on 2 April 1991.
Overview
The Commonwealth Banks Regulations (Amendment) 1991 No. 55, issued under the authority of the Treasurer, amends the Commonwealth Banks Regulations to facilitate the conversion of the Commonwealth Bank into a public company following the enactment of the Commonwealth Banks Restructuring Act 1990. The primary objective of these amendments is to align the regulatory framework with the structural changes mandated by the Restructuring Act, ensuring a smooth transition of the Commonwealth Bank into a corporate entity. These regulations specify the date on which the Australian Securities Commission becomes the regulatory body for the Commonwealth Bank, thereby enabling the bank to comply with necessary regulatory requirements for its new corporate status. The changes are designed to address the transitional legal and administrative needs arising from the restructuring, ensuring that the Commonwealth Bank can effectively operate as a public company from the specified date.
Scope and Application
The Commonwealth Banks Regulations (Amendment) 1991 No. 55 applies to the Commonwealth Bank as it undergoes its conversion from a statutory corporation to a public company, as stipulated by the Commonwealth Banks Restructuring Act 1990. This amendment is an essential part of the restructuring process and ensures that the bank meets the necessary regulatory requirements post-transition. The regulations amend the existing Commonwealth Banks Act 1959 to reflect the changes brought about by the restructuring act, specifically updating the definition of "Securities Commission" to reflect the transition from the National Companies and Securities Commission to the Australian Securities Commission. The regulations are designed to facilitate the Commonwealth Bank's conversion process, ensuring compliance with the new regulatory framework established by the Australian Securities Commission. The amendments specify that the new definition of "Securities Commission" will take effect on 1 January 1991, aligning with the commencement of the Australian Securities Commission's operations. This amendment is effective from 2 April 1991, which is the same date that the new definition is set to commence, ensuring a smooth transition for the Commonwealth Bank.
Key Provisions
The Commonwealth Banks Regulations (Amendment) 1991 No. 55, issued under the authority of the Treasurer, primarily amend the existing regulations in line with the provisions of the Commonwealth Banks Restructuring Act 1990 (Restructuring Act). Section 129 of the Commonwealth Banks Act 1959 (Act) empowers the making of these regulations to implement the Act. The Restructuring Act, once proclaimed, transforms the Commonwealth Bank into a public company on 17 April 1991. To facilitate this transformation, the Regulations specify the definition of "Securities Commission" in subsection 8(3) of the Restructuring Act, which now includes the Australian Securities Commission (ASC) effective from 1 January 1991. This amendment allows the Commonwealth Bank to comply with the regulatory requirements to transition into a public company.
The Regulations impose several obligations and requirements on the Commonwealth Bank and other relevant entities. They necessitate the lodgement of specific documents with the ASC to ensure the proper conversion of the Commonwealth Bank into a public company. The precise definition of "Securities Commission" is crucial for ensuring that all filings and regulatory interactions are correctly directed to the ASC, thereby maintaining compliance with the restructuring requirements. The Regulations ensure that the transition is smooth and that the Commonwealth Bank meets all statutory obligations under the Act and the Restructuring Act.
There are no explicit offences, penalties, or consequences outlined in the explanatory statement for breaches of the Regulations. However, it is implied that failure to comply with the stipulated requirements could result in legal ramifications under the Act and the Restructuring Act. This may include potential civil or administrative penalties for non-compliance, as well as broader implications for the Commonwealth Bank's status and operations if it fails to meet the regulatory standards set by the ASC. The precise nature and extent of these consequences would typically be detailed in the overarching legislation and related regulations.