Corporations (Fees) Amendment Act 2010
No. 27, 2010
An Act to amend the Corporations (Fees) Act 2001, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendments
Corporations (Fees) Act 2001
Corporations (Fees) Amendment Act 2010
No. 27, 2010
An Act to amend the Corporations (Fees) Act 2001, and for related purposes
[Assented to 25 March 2010]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Corporations (Fees) Amendment Act 2010.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 25 March 2010 |
2. Schedule 1 | At the same time as Schedule 1 to the Corporations Amendment (Financial Market Supervision) Act 2010 commences. | 1 August 2010 |
Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Corporations (Fees) Act 2001
1 Subsection 4(1) (at the end of the definition of chargeable matter)
Add:
; (m) the performance by ASIC of its functions under Part 7.2A (Supervision of financial markets) of the Corporations Act 2001.
2 Subsection 5(1)
Omit “section 6”, substitute “sections 6 and 6A”.
3 At the end of section 6
Add:
(6) This section does not apply in relation to a chargeable matter referred to in paragraph (m) of the definition of chargeable matter in subsection 4(1).
4 After section 6
Insert:
6A Matters relating to amount of fees for market supervision
(1) The regulations may prescribe a fee for a chargeable matter referred to in paragraph (m) of the definition of chargeable matter in subsection 4(1):
(a) by specifying an amount as the fee; or
(b) by specifying a method for calculating the amount of the fee.
(2) The fee prescribed under subsection (1) need not bear any relationship to the cost of providing any service that forms part of, or is related to, the chargeable matter.
5 At the end of subsection 7(1)
Add:
; (m) for a chargeable matter referred to in paragraph (m) of that definition:
(i) person liable—the operator of a licensed market; and
(ii) time liability incurred—the time or times determined in accordance with the regulations.
6 Section 8
Omit “and 6”, substitute “, 6 and 6A”.
[Minister’s second reading speech made in—
House of Representatives on 10 February 2010
Senate on 24 February 2010]
Overview
The Corporations (Fees) Amendment Act 2010 was enacted by the Parliament of Australia to address specific gaps in the existing legislative framework regarding fees for certain functions of the Australian Securities and Investments Commission (ASIC). This Act amends the Corporations (Fees) Act 2001 to include additional chargeable matters, thereby ensuring that ASIC's role in supervising financial markets is adequately funded. The policy objective is to provide ASIC with the necessary financial resources to effectively carry out its functions under Part 7.2A of the Corporations Act 2001, particularly in relation to the supervision of financial markets. This amendment allows for the prescription of fees for market supervision activities through regulations, which can be set at a specific amount or by a calculative method, independent of the actual cost of the services provided.
Scope and Application
The Corporations (Fees) Amendment Act 2010 amends the Corporations (Fees) Act 2001, expanding the scope of fees applicable to the performance of certain functions by the Australian Securities and Investments Commission (ASIC). Specifically, the Act introduces a new category of chargeable matters related to the supervision of financial markets, which are now subject to fees under the Corporations (Fees) Act 2001. This amendment applies to the fees imposed for the performance of ASIC's functions under Part 7.2A of the Corporations Act 2001, which pertains to the supervision of financial markets. The Act applies to entities such as operators of licensed markets that are subject to these supervisory functions. The geographic reach of the Act is national, as it pertains to the Commonwealth of Australia and its regulatory framework. The Act does not specify exclusions or exemptions, but allows for the possibility that fees may not necessarily reflect the cost of providing the related services. The application of the Act can be further defined through subordinate legislation, which may detail specific fees or methods for calculating fees for the new category of chargeable matters.
Key Provisions
The Corporations (Fees) Amendment Act 2010, commencing on 25 March 2010 and 1 August 2010 for certain provisions, amends the Corporations (Fees) Act 2001 to update and refine the fee structures associated with corporate activities. Notably, Section 1 of the Act amends the definition of "chargeable matter" by adding a new subparagraph (m) to include the performance of Australian Securities and Investments Commission's (ASIC) functions under Part 7.2A of the Corporations Act 2001, specifically related to the supervision of financial markets. This amendment is intended to ensure that fees encompass charges for the oversight of financial markets, which were previously not explicitly covered.
The Act also revises several sections to align with the new inclusion of market supervision fees. For example, Subsection 5(1) now includes "sections 6 and 6A" instead of just "section 6". Additionally, a new Section 6A is inserted, which allows regulations to specify fees for chargeable matters related to market supervision. This section emphasises that the prescribed fee does not need to correlate with the cost of providing the service, thereby granting flexibility in fee setting. Subsection 7(1) is expanded to clarify that the fee for a chargeable matter related to market supervision is the responsibility of the operator of a licensed market, with the timing determined by regulations.
In terms of obligations, the Act imposes specific duties on ASIC and other relevant parties. ASIC is tasked with implementing regulations that define fees for market supervision activities, ensuring they are prescribed either by a fixed amount or a calculative method. The operator of a licensed market is obligated to pay these fees as determined by the regulations. Furthermore, Section 8 is updated to include references to the new Section 6A, ensuring consistency across the Act.
Failure to comply with the fee regulations set forth by the Act can lead to various consequences. While specific offences and penalties are not detailed within the Act itself, it is implied that breaches of the prescribed fees would be handled under the broader Corporations Act 2001, which includes both civil and criminal penalties. These could range from fines to imprisonment, depending on the severity and intent behind the breach. The flexibility in fee setting does not absolve entities from the obligation to pay the specified fees, and non-compliance could result in legal action being taken against the defaulting parties.