Commonwealth Inscribed Stock Regulations (Amendment)

Overview

The Commonwealth Inscribed Stock Regulations 1959, enacted under the Commonwealth Inscribed Stock Act 1911-1946, aim to establish a formal procedure for the destruction of cancelled securities and coupons. This regulation was introduced to ensure that securities, once paid off and discharged or cancelled for any other reason, are destroyed in a controlled and certified manner to prevent any misuse or fraudulent activity. The enactment of this regulation by the Governor-General in Council, on the advice of the Federal Executive Council, underscores the importance of maintaining the integrity of the securities system by ensuring that cancelled instruments are properly disposed of. This legislative instrument reflects the policy objective of safeguarding financial instruments and maintaining public trust in the financial system.

Scope and Application

The Commonwealth Inscribed Stock Regulations, specifically the amendment introduced in Statutory Rules 1959, No. 96, extend to securities and coupons issued under section 51A of the Commonwealth Inscribed Stock Act 1911-1946. These regulations pertain to the destruction of securities that have been cancelled due to being paid off and discharged or for any other reason, mandating that such destruction must occur in the presence of an authorised person, who is defined as someone authorised by the Secretary. Upon completion of the destruction, the authorised person is required to provide a written certification attesting to the fact that the securities or coupons have indeed been destroyed in their presence. This regulation is significant in ensuring the proper and secure disposal of cancelled securities, thereby maintaining the integrity of the financial system. The geographic and jurisdictional reach of these regulations is primarily within the Commonwealth of Australia, given the nature of the underlying Act and the statutory framework. These regulations do not explicitly state any exclusions, exemptions, or thresholds, and their application is not extended or restricted by subordinate instruments beyond the terms explicitly outlined in the amendment.

Key Provisions

The main operative sections of the regulation are 66A(1) to 66A(3). Regulation 66A(1) clarifies that Section 12 of the Treasury Bills Act 1914-1940 does not apply to securities or coupons issued under Section 51A of the Commonwealth Inscribed Stock Act 1911-1946. Regulation 66A(2) mandates that any cancelled securities or coupons must be destroyed in the presence of an authorised person, who then must certify in writing that the destruction took place. Regulation 66A(3) defines 'authorised person' as someone authorised by the Secretary. The regulation imposes several obligations on the parties involved. Firstly, it requires that securities or coupons issued under the Act and subsequently cancelled must be destroyed. This destruction must occur in the presence of an authorised person, as defined in the regulation. The authorised person has the responsibility of witnessing the destruction and then certifying in writing that the destruction has taken place. This certification must be done by writing under their hand, ensuring a clear and verifiable record of the destruction. Breach of the regulation's requirements can lead to significant consequences. While the regulation does not explicitly state penalties for non-compliance, it is reasonable to infer that failure to destroy cancelled securities or coupons in the prescribed manner could be viewed as non-compliance with the statutory framework governing inscribed stock. Such non-compliance might attract legal scrutiny and potential penalties, though the specific penalties would need to be determined by the relevant courts or tribunals. It is also possible that non-compliance could lead to administrative or civil penalties, but these would need to be outlined in other parts of the statutory framework or in specific regulations related to compliance and enforcement.