EXPLANATORY STATEMENT
Proclamation
Issued by the Authority of the Minister for Financial Services, Superannuation and Corporate Law
Corporations Legislation Amendment (Financial Services Modernisation) Act 2009
Subsection 2(1) of the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009 (the Act) provides that Schedule 1 and items 2 and 3 of Schedule 3 to the Act commence on a day to be fixed by proclamation. However, if any of the provisions of Schedule 1 and items 2 and 3 of Schedule 3 do not commence within six months of the date the Act receives the Royal Assent, then those provisions commence on the first day after the end of that six month period. The Act received the Royal Assent on 6 November 2009.
The purpose of the Proclamation is to fix 1 January 2010 as the day on which Schedule 1 and items 2 and 3 of Schedule 3 to the Act commence.
The Act amends the Corporations Act 2001. It sets out a national regulatory regime for margin loans, implements the transfer of trustee company regulation from the states and territories to the Commonwealth, and aligns the regulation of debentures and promissory notes and establishes a register of debenture trustees. The proclamation relates only to the commencement of the provisions on margin loans (Schedule 1) and the register of debenture trustees (Schedule 3, items 2 and 3). Schedule 2, in relation to trustee companies, will commence on a date to be determined. Schedules 4 and 5 and item 1 of Schedule 3 commenced on the Royal Assent.
The commencement date provides time for the regulator (the Australian Securities and Investments Commission) to put the necessary administrative systems in place. The commencement date was agreed with the regulator.
Public consultation was undertaken through the release of an exposure draft of the legislation for a three week period from 7 May 2009. No substantial comments were received in relation to the debentures legislation. A limited number of submissions were received in relation to margin lending and some changes made as a consequence. In addition, a consultation group of industry and other stakeholders was formed to advise on the legislation as it was being developed. Ongoing consultation was undertaken with this group, and its views and suggestions have been instrumental in producing the margin lending legislation in its final form.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.