Corporations (Fees) Amendment Act 2007

Overview

The Corporations (Fees) Amendment Act 2007, assented to on 28 June 2007 by the Parliament of Australia, was enacted to amend the Corporations (Fees) Act 2001. This legislation aims to address a gap in the regulatory framework by ensuring that the fees charged for certain functions under the Corporations Act 2001 are adequately reflected and collected. The policy objective behind this amendment is to provide a more accurate and comprehensive fee structure that aligns with the functions conferred upon the Australian Securities and Investments Commission (ASIC) by the operating rules of a market, as required by subsection 798DA(2) of the Corporations Act 2001. This amendment ensures that ASIC can effectively manage its regulatory activities by charging appropriate fees for the services it provides.

Scope and Application

The Corporations (Fees) Amendment Act 2007 amends the Corporations (Fees) Act 2001, primarily concerning the fees that are payable to the Australian Securities and Investments Commission (ASIC) for services rendered in relation to corporations. This Act applies to corporations, individuals, and entities that are subject to the Corporations Act 2001, specifically those that are required to pay fees for ASIC services. The jurisdictional reach of this Act is national, applying across Australia as it is a Commonwealth Act. The amendment extends the definition of "chargeable matter" to include functions conferred on ASIC by the operating rules of a market as required by subsection 798DA(2) of the Corporations Act 2001. The Act came into effect on 28 June 2007, the date it received Royal Assent, and the amendments to the Corporations (Fees) Act 2001 commenced at the same time as item 105 of Schedule 1 to the Corporations Legislation Amendment (Simpler Regulatory System) Act 2007. The Act does not specify exclusions, exemptions, or thresholds for its application, and it does not extend or restrict application through subordinate instruments.

Key Provisions

The Corporations (Fees) Amendment Act 2007 (No. 102, 2007) amends the Corporations (Fees) Act 2001, primarily by expanding the definition of "chargeable matter" under section 4 (paragraph k). Specifically, it includes "functions conferred on ASIC by the operating rules of a market as required by subsection 798DA(2) of the Corporations Act 2001" (Schedule 1, item 1). This amendment ensures that certain functions performed by the Australian Securities and Investments Commission (ASIC) related to market operations are now subject to fees as defined by the Act. The Act received Royal Assent on 28 June 2007, and its provisions commenced on the same date. Entities governed by the Corporations (Fees) Act 2001, particularly those engaging in activities overseen by ASIC, are required to comply with the updated fee structures as per the amended definition of chargeable matter. This means that fees applicable to certain regulatory functions performed by ASIC under market operating rules must now be accounted for and paid. Companies, market operators, and other relevant entities must ensure their fee calculations and payments reflect these updated obligations. The Act imposes a clear requirement for accurate reporting and payment of fees related to the newly included functions. The Act does not explicitly state specific offences or penalties for non-compliance within its text; however, breaches of the Corporations (Fees) Act 2001 generally may result in civil or criminal penalties. Under the Corporations Act 2001, penalties for non-compliance can include substantial fines and, in some cases, imprisonment for individuals found guilty of serious breaches. The exact penalties depend on the nature and severity of the breach, but they can be significant, reflecting the importance of adhering to regulatory requirements. Given the nature of financial regulation, penalties for non-compliance are likely to be severe, encompassing both financial penalties and potential criminal charges for individuals.