Corporations Regulations (Amendment) 1995 No. 344
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 344
Issued by the Authority of the Attorney-General
Corporations Act 1989
Corporations Regulations (Amendment)
Section 22 of the Corporations Act 1989 (the Act) empowers the Governor-General to make regulations not inconsistent with the Act or the Corporations Law (the Law), prescribing matters which are required or permitted by the Law to be prescribed by regulations, or are necessary or convenient to be prescribed by regulation for carrying out or giving effect to the Law.
The purposes of the Regulations are to:
(a) amend regulation 7.3.11 to fully apply the licensing provisions of Parts 7.3 to 7.6 of the Law to superannuation dealers and advisers;
(b) amend the list of authorised trustee corporations in Schedule 9;
Details of the amendments to the Corporations Regulations are at Attachment A.
As required under the Heads of Agreement and the draft Corporations Agreement between the Commonwealth, States and Northern Territory, the Attorney-General consulted with the State and Territory Attorneys-General on the amendments to the Corporations Regulations.
The Regulations commenced on the date of gazettal.
ATTACHMENT A
DETAILS OF CORPORATIONS REGULATIONS AMENDMENTS
Commencement
These Regulations commenced on the date of gazettal.
Regulation 1
Amendment
Subregulation 1.1 provides that the Corporations Regulations are amended as set out in these Regulations.
Regulation 2
Amendments to Regulation 7.3.11 (Exemptions from licensing, etc: prescribed interests)
Subregulation 2.1 amends subregulation 7.3.11 (1) by making it subject to subregulation (1A).
Subregulation 2.2 inserts a new subregulation 7.3.11 (1A) which removes from the operation of subregulation 7.3.11 (1) a dealing by a person in, or with, a prescribed interest in a regulated superannuation fund, an approved deposit fund or a pooled superannuation trust with the meaning of the Superannuation Industry (Supervision) Act 1993.
On 1 July 1994 regulation 7.12.04 was amended to provide that, for the purpose of the definition of "prescribed interest" in section 9 of the Law, rights or interests in a regulated superannuation fund, an approved deposit fund or a pooled superannuation trust within the meaning of the Superannuation Industry (Supervision) Act 1993 are exempt rights or interests, except for the purposes of Parts 7.3 to 7.6 (inclusive) of Chapter 7 of the Corporations Law.
The amendment to regulation 7.12.04 was necessary to exclude superannuation products from the operation of the Corporations Law and to facilitate the transfer of the regulation of superannuation products to the Insurance and Superannuation Commission from 1 July 1994.
The exemption in regulation 7.12.04 is expressed not to exclude the operation of Part 7.3 to 7.6 (inclusive) of Chapter 7 of the Corporations Law. Parts 7.3 to 7.6 contain licensing provisions for investment advisers and securities dealers.
Parts 7.3 to 7.6 however, only have a limited application to dealers and advisers in relation to superannuation products. Regulation 7.3.11 provides that a person dealing in or with a prescribed interest under which an approved deed is not required to be in force is exempted from Divisions 1 and 3 of Part 7.3, Parts 7.5 to 7.7 and section 842. This includes exemptions from the requirements to hold a dealers or advisers licence and provisions concerning representatives, money and scrip of clients, dealers accounts and audits and the issue of contract notes.
Subregulation 7.3.11(1A) limits the operation of regulation 7.3.11(1) by excluding from its operation, a dealing by a person in, or with, an interest in a superannuation product. Accordingly, the whole of Parts 7.3 to 7.6 is to apply to dealers and advisers in relation to interests in superannuation products.
Regulation 3
Amendments to Schedule (Authorised trustee corporations)
Subregulation 3.1 amends the list of authorised trustee corporations in Schedule 9.
Section 9 of the Law defines an "authorised trustee corporation" to mean a body corporate that is declared by the regulations to be an authorised trustee corporation. Regulation 7.1.01 provides that each of the bodies corporate listed in Schedule 9 is declared to be an authorised trustee corporation for the purposes of the definition in section 9.
One of the bodies corporate contained in Schedule 9 recently changed its name from 'Sandhurst and Northern District Trustees Executors and Agency Company Limited' to 'Sandhurst Trustees Limited'. The amendment to Schedule 9 reflects the change of name.