Corporations (Fees) Amendment (Hayne Royal Commission Response) Act 2020
No. 137, 2020
An Act to amend the Corporations (Fees) Act 2001, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedules
Schedule 1—Amendments
Corporations (Fees) Act 2001
Corporations (Fees) Amendment (Hayne Royal Commission Response) Act 2020
No. 137, 2020
An Act to amend the Corporations (Fees) Act 2001, and for related purposes
[Assented to 17 December 2020]
The Parliament of Australia enacts:
1 Short title
This Act is the Corporations (Fees) Amendment (Hayne Royal Commission Response) Act 2020.
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 |
Provisions | Commencement | Date/Details |
1. The whole of this Act | Immediately after the commencement of Schedule 3 to the Financial Sector Reform (Hayne Royal Commission Response) Act 2020. However, the provisions do not commence at all if that Schedule does not commence. | 5 October 2021 |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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:
; (o) the making of an application to ASIC for an exemption, or a variation or revocation of an exemption, under subsection 12DY(1) of the Australian Securities and Investments Commission Act 2001.
2 At the end of subsection 7(1)
Add:
; (o) for a chargeable matter referred to in paragraph (o) of that definition:
(i) person liable—the person who makes the application; and
(ii) time liability incurred—when the application is made.
[Minister’s second reading speech made in—
House of Representatives on 12 November 2020
Senate on 9 December 2020]
Overview
The Corporations (Fees) Amendment (Hayne Royal Commission Response) Act 2020 was enacted by the Parliament of Australia to address deficiencies in the regulatory framework highlighted by the Hayne Royal Commission. This Act amends the Corporations (Fees) Act 2001 to introduce fees for specific applications made to the Australian Securities and Investments Commission (ASIC), particularly those related to exemptions or variations and revocations of exemptions under the Australian Securities and Investments Commission Act 2001. The policy objective of this legislation is to ensure that the costs associated with processing such applications are appropriately reflected and managed within the regulatory system, thereby supporting the efficient administration of corporate law. The Act came into effect on 5 October 2021, contingent on the commencement of Schedule 3 to the Financial Sector Reform (Hayne Royal Commission Response) Act 2020.
Scope and Application
The Corporations (Fees) Amendment (Hayne Royal Commission Response) Act 2020 amends the Corporations (Fees) Act 2001 to respond to the findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The Act applies to persons and entities who make applications to the Australian Securities and Investments Commission (ASIC) for exemptions or variations or revocations of exemptions under the Australian Securities and Investments Commission Act 2001. The amendments specify that the person who makes such an application is liable for the associated fees, and the liability is incurred at the time the application is made. The Act has a national jurisdictional reach, as it amends a Commonwealth Act. The Act commenced on 5 October 2021, immediately after the commencement of Schedule 3 to the Financial Sector Reform (Hayne Royal Commission Response) Act 2020, provided that Schedule does not fail to commence. The application and scope of the Act may be extended or restricted through subordinate instruments.
Key Provisions
The Corporations (Fees) Amendment (Hayne Royal Commission Response) Act 2020 (C2020A00137) primarily amends the Corporations (Fees) Act 2001 by introducing new fee structures and expanding the definition of what constitutes a "chargeable matter" for fee purposes. Under section 1 of the Act, the making of an application to the Australian Securities and Investments Commission (ASIC) for an exemption, or a variation or revocation of an exemption, under subsection 12DY(1) of the Australian Securities and Investments Commission Act 2001 is added as a new chargeable matter. Section 2 further clarifies that for this new chargeable matter, the person liable for the fee is the person who makes the application, and the time at which the liability for the fee is incurred is when the application is made.
The obligations imposed by the Act on the parties it governs are primarily related to the payment of fees. Specifically, entities making applications to ASIC for exemptions or variations or revocations of exemptions must now account for and pay the associated fees as stipulated under the amended definitions and provisions in the Corporations (Fees) Act 2001. These entities must ensure they adhere to the new fee structures and timelines specified by the legislation to avoid any penalties or consequences.
The Act does not explicitly detail offences or penalties for non-compliance with the new fee requirements. However, failure to pay the fees as required by the amended Corporations (Fees) Act 2001 could potentially lead to enforcement actions by ASIC under the broader Corporations Act 2001, which could include fines and other regulatory measures. While the specific penalties for non-compliance are not outlined in the Corporations (Fees) Amendment (Hayne Royal Commission Response) Act 2020, the overarching framework of the Corporations Act 2001 provides the necessary legal basis for enforcement actions against entities that fail to meet their fee obligations.