Corporations Law (Securities And Futures) Amendment Act 1995

Legislation au C2004A04886 Not in force Act

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Corporations Law (Securities and Futures) Amendment Act 1995

No. 33 of 1995

 

An Act to amend the Corporations Law

[Assented to 12 April 1995]

The Parliament of Australia enacts:

Short title etc.

1.(1) This Act may be cited as the Corporations Law (Securities and Futures) Amendment Act 1995.

(2) In this Act, "Corporations Law" means the Corporations Law set out in section 82 of the Corporations Act 19891.


Commencement

2. This Act commences on the day on which it receives the Royal Assent.

Futures contract

3. Section 72 of the Corporations Law is amended by adding at the end of subsection (1):

"Note: Regulations under subsection 72A(2) may provide that specified provisions of this Law and the regulations apply in relation to Chapter 8 agreements to which section 72A applies as if the agreements were futures contracts.".

Insertion of new section

4. After section 72 of the Corporations Law the following section is inserted:

Law applies to certain Chapter 8 agreements as if they were futures contracts

"72A.(1) This section applies to Chapter 8 agreements:

(a) that are entered into on a futures market of a futures exchange; and

(b) that are of a kind prescribed for the purposes of this paragraph.

"(2) The regulations may, in relation to Chapter 8 agreements to which this section applies:

(a) provide that specified provisions of this Law and the regulations apply in relation to the agreements as if the agreements were futures contracts; and

(b) provide that specified provisions of this Law and the regulations do not apply in relation to the agreements; and

(c) make modifications of this Law and the regulations as applying in relation to the agreements.

"(3) Modifications made by regulations referred to in paragraph (2)(c) may be of provisions specified in regulations referred to in paragraph (2)(a) or of other provisions of this Law or the regulations.".

Securities

5. Section 92 of the Corporations Law is amended by adding at the end of subsection (1):

"Note: Regulations under subsection 92A(2) may provide that specified provisions of this Law and the regulations apply in relation to relevant agreements to which section 92A applies as if the agreements were securities.".

Insertion of new section

6. After section 92 of the Corporations Law the following section is inserted:


Law applies to certain relevant agreements as if they were securities

"92A.(1) This section applies to relevant agreements (whether or not they are futures contracts):

(a) that are entered into on a stock market of a securities exchange; and

(b) that are of a kind prescribed for the purposes of this paragraph.

"(2) The regulations may, in relation to relevant agreements to which this section applies:

(a) provide that specified provisions of this Law and the regulations apply in relation to the agreements as if the agreements were securities; and

(b) provide that specified provisions of this Law and the regulations do not apply in relation to the agreements; and

(c) make modifications of this Law and the regulations as applying in relation to the agreements.

"(3) Modifications made by regulations referred to in paragraph (2)(c) may be of provisions specified in regulations referred to in paragraph (2)(a) or of other provisions of this Law or the regulations.".

Gaming and wagering laws not applicable to certain contracts and relevant agreements

7. Section 778 of the Corporations Law is amended:

(a) by omitting "and wagering" and substituting "or wagering";

(b) by adding at the end:

"(2) Nothing in a law of this jurisdiction about gaming or wagering prevents the entering into, or affects the validity or enforceability, of a relevant agreement of a kind prescribed for the purposes of paragraph 92A(1)(b).".

Gaming and wagering laws not applicable to certain futures contracts and Chapter 8 agreements

8. Section 1141 of the Corporations Law is amended by adding at the end:

"(2) Nothing in a law of this jurisdiction about gaming or wagering prevents the entering into, or affects the validity or enforceability, of a Chapter 8 agreement of a kind prescribed for the purposes of paragraph 72A(1)(b).".


NOTE

Corporations Act 1989

1. No. 109, 1989, as amended. For previous amendments, see No. 110, 1990 (as amended by No. 201, 1991); Nos. 110, 200 and 201, 1991; Nos. 27 and 210, 1992; Nos. 32 and 82, 1993; and Nos. 31, 69 and 104, 1994.

 

[Minister's second reading speech made in—

Senate on 5 December 1994

House of Representatives on 28 March 1995]

Overview

The Corporations Law (Securities and Futures) Amendment Act 1995 was enacted by the Parliament of Australia to address gaps in the regulation of securities and futures within the Corporations Law. This Act sought to ensure that certain financial instruments, specifically Chapter 8 agreements and relevant agreements, are appropriately regulated under the Corporations Law, even if they do not strictly fit within existing definitions. The policy objective was to provide a clear regulatory framework for these financial instruments to enhance market integrity and protect investors. The Act allows for the application of relevant provisions of the Corporations Law to these agreements, treating them as if they were futures contracts or securities, while also ensuring that gaming and wagering laws do not impede the validity or enforceability of these agreements. This legislative amendment aimed to provide a comprehensive regulatory environment that accommodates the evolving nature of financial markets.

Scope and Application

The Corporations Law (Securities and Futures) Amendment Act 1995 amends the Corporations Law to extend the application of certain provisions to Chapter 8 agreements and relevant agreements, treating them as if they were futures contracts or securities, respectively. The Act applies to agreements that are entered into on a futures market of a futures exchange or on a stock market of a securities exchange and are of a kind prescribed for the purposes of the relevant sections. This amendment ensures that the Corporations Law provisions, including those set out in regulations, apply to these agreements as if they were futures contracts or securities. The regulations also have the power to provide that specified provisions of the Law and the regulations do not apply to these agreements or to make modifications of the Law and the regulations as applying to the agreements. This Act applies nationally across Australia, as it is a Commonwealth Act. There are no explicit exclusions, exemptions, or thresholds stated in the Act itself, but these may be defined through subordinate instruments such as regulations, which can provide further detail on the types of agreements to which the Act applies and the extent of the application of the Corporations Law provisions.

Key Provisions

The Corporations Law (Securities and Futures) Amendment Act 1995 (C2004A04886) makes several key amendments to the Corporations Law. Primarily, it introduces new sections 72A and 92A, which provide that certain agreements can be treated as if they were futures contracts or securities (sections 72A and 92A). These sections apply to agreements entered into on futures markets or stock markets, respectively, and which are of a kind prescribed by regulation. The Act also allows regulations to specify which provisions of the Corporations Law and the regulations apply to these agreements, or to exclude certain provisions from applying, as well as to modify existing provisions (subsections 72A(2) and 92A(2)). Additionally, the Act amends sections 778 and 1141 to clarify that gaming and wagering laws do not affect the validity or enforceability of certain agreements (subsections 778(2) and 1141(2)). The Act imposes certain obligations on the parties involved in these agreements. Specifically, those entering into agreements that are to be treated as futures contracts or securities must ensure that such agreements comply with the relevant provisions of the Corporations Law as if they were indeed futures contracts or securities. This includes adherence to any regulations that specify which provisions apply or any modifications made to existing provisions. Furthermore, the Act requires that these agreements do not contravene any gaming or wagering laws, as clarified by the amendments to sections 778 and 1141. Breaching the provisions of this Act can result in various consequences. While the Act itself does not specify detailed penalties, violations of the Corporations Law generally can lead to both civil and criminal penalties. Civil penalties can include fines and orders for compensation, while criminal penalties may include fines and imprisonment, depending on the severity of the offence and the specific provisions breached. The exact penalties would be determined in the context of the broader Corporations Law and any relevant regulations.

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Corporate Law & Governance
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.