Corporations Regulations (Amendment)

Overview

The Corporations Regulations (Amendment) 1994 No. 153, issued under the authority of the Attorney-General, amends the Corporations Regulations in response to the needs identified under the Corporations Act 1989. This amendment was enacted to address the need to update the list of foreign futures exchanges recognised under Australian corporate law, ensuring that Australian futures brokers can operate on authorised platforms. The amendment was developed in consultation with relevant State and Territory Ministers, as required under the Heads of Agreement and the draft Corporations Agreement. The primary objective is to facilitate the inclusion of additional foreign futures exchanges in Schedule 11 of the Corporations Regulations, thereby ensuring compliance with the Corporations Law by allowing authorised trading only on recognised exchanges. The regulations commenced on the date of their gazettal, reflecting the urgency and necessity of these updates to maintain the integrity and functionality of Australia's corporate regulatory framework.

Scope and Application

The Corporations Regulations (Amendment) 1994 No. 153 applies to the Corporations Act 1989 and its regulations, specifically targeting entities involved in futures trading, such as corporations and futures brokers. These regulations aim to amend the existing list of recognised foreign futures exchanges by including additional exchanges and correcting previous entries. The regulations extend to all jurisdictions within Australia, reflecting a coordinated approach to corporate regulation that aligns with the agreements between Commonwealth, State, and Territory Ministers. The geographic reach of these regulations is national, ensuring uniformity in the recognition and regulation of foreign futures exchanges across all states and territories. The regulations do not introduce any new exclusions or exemptions but refine the existing framework to ensure clarity and accuracy in the list of recognised exchanges. The application of these regulations is further extended through subordinate instruments that may provide additional details or clarifications necessary for their implementation.

Key Provisions

The main operative sections of these regulations ((1)) amend the Corporations Regulations by adding several foreign futures exchanges to Schedule 11. Specifically, section 9 of the Corporations Act 1989 defines 'recognised futures exchange' and paragraph (b) of this definition refers to Schedule 11, which lists the overseas futures exchanges on which futures brokers may trade on behalf of others. Regulation 2 under the amended regulations adjusts Schedule 11 by correcting the spelling of Deutsche Terminborse, providing its English translation, and adding eight more foreign futures exchanges in their appropriate alphabetical positions. The obligations imposed by these regulations on the relevant parties include ensuring compliance with the updated Schedule 11. Futures brokers must now only engage in trading activities on the exchanges listed in the amended Schedule 11, which now includes the corrected entry for Deutsche Terminborse and eight additional foreign futures exchanges. This requirement ensures that trading activities are conducted on authorised platforms, maintaining regulatory oversight and compliance with the Corporations Act. Failure to comply with the updated Schedule 11 could result in significant consequences. Although the specific offences, penalties, or consequences for breach are not detailed in the explanatory statement, it is reasonable to infer that any unauthorised trading on unlisted foreign futures exchanges could lead to regulatory sanctions under the Corporations Act. Such sanctions could include fines, penalties, or other enforcement actions. The precise penalties would depend on the specific nature of the breach and the applicable provisions of the Act. It is important for futures brokers to ensure they are operating within the confines of the amended regulations to avoid potential legal repercussions.