Corporations (Securities Exchanges Levies) Act 2001

Legislation au C2004A00824 Not in force Act

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Act No. 56 of 2001 as amended

[Note: This Act is to be repealed by Act No. 123 of 2001]

This compilation was prepared on 11 March 2002
taking into account amendments up to Act No. 123 of 2001

The text of any of those amendments not in force
on that date is appended in the Notes section

Prepared by the Office of Legislative Drafting,
Attorney‑General’s Department, Canberra

Contents

1 Short title [see Note 1]...........................

2 Commencement [see Note 1].......................

3 Definitions..................................

4 Imposition of levies in respect of securities exchange fidelity funds.

5 Amounts of levies..............................

6 Cessation of liability to levy if fund exceeds the relevant limit....

7 Regulations..................................

8 Transitional matters.............................

Notes

An Act to impose levies in respect of securities exchange fidelity funds, and for related matters

1 Short title [see Note 1]

This Act may be cited as the Corporations (Securities Exchanges Levies) Act 2001.

2 Commencement [see Note 1]

This Act commences at the same time as the Corporations Act 2001.

3 Definitions

(1) In this Act:

old Corporations Law, in relation to a State or Territory, has the same meaning as it has in Part 10.1 of the Corporations Act 2001.

(2) Other expressions used in this Act that were defined in a provision of the Corporations Act 2001 that, immediately before the commencement of this subsection, applied for the purposes of Part 7.9 of that Act (whether it also applied for other purposes) have the same meanings in this Act as they were given by that provision.

4 Imposition of levies in respect of securities exchange fidelity funds

The following levies are imposed by this Act:

(a) the levy by the name of securities exchange (application for membership) fidelity fund contribution that is payable under subsection 902(1) of the Corporations Act 2001, as that subsection continues to apply because of section 1415 or 1420 of the Financial Services Reform (Consequential Provisions) Act 2001, by a person who wishes to be admitted to membership of a securities exchange, or to a partnership in a member firm recognised by a securities exchange, as mentioned in that subsection;

(b) the levy by the name of securities exchange (annual membership) fidelity fund contribution that is payable under subsection 902(2) of the Corporations Act 2001, as that subsection continues to apply because of section 1415 or 1420 of the Financial Services Reform (Consequential Provisions) Act 2001, by a member of a securities exchange referred to in that subsection;

(c) any levy by the name of securities exchange additional fidelity fund contribution that is payable under subsection 904(1) of the Corporations Act 2001, as that subsection continues to apply because of section 1415 or 1420 of the Financial Services Reform (Consequential Provisions) Act 2001, by a member of a securities exchange referred to in that subsection.

5 Amounts of levies

(1) The amount of levy imposed by paragraph 4(a) is such amount, not being less than $500, as is determined by the securities exchange in relation to the person, or in relation to a class of persons that includes the person.

(2) The amount of levy imposed by paragraph 4(b) is such amount, not being less than $100, as is determined by the securities exchange in relation to the person, or in relation to a class of persons that includes the person.

(3) Subject to subsections (4) and (5), the amount of levy imposed by paragraph 4(c) is such amount as is determined by the securities exchange in relation to the person, or in relation to a class of persons that includes the person.

(4) Subsection (3) has effect subject to the following limitations:

(a) if, apart from this section, the making of a determination (the new determination) of an amount of levy for the purposes of subsection (3) would take the total of all amounts of levy determined in relation to a person under that subsection to more than $5,000, the new determination has effect in relation to the person only to the extent to which it would take that total to $5,000;

(b) if, apart from this section, the making of a determination (the new determination) of an amount of levy for the purposes of subsection (3) would take the total of all amounts of levy determined in relation to a person under that subsection in a period of 12 months (which may be a period some of which occurred before the commencement of this Act) to more than $1,000, the new determination has effect in relation to the person only to the extent to which it would take that total to $1,000.

(5) A reference in subsection (4) to an amount of levy determined in relation to a person under subsection (3) is taken to include a reference to:

(a) in the case of paragraph (4)(a)—any amount that counted for the purpose of the $5,000 limit in subsection 904(3) of the old Corporations Law of a State or Territory as it applied in relation to the person and the securities exchange immediately before the commencement of this Act; and

(b) in the case of paragraph (4)(b)—any amount that counted for the purpose of the $1,000 limit in subsection 904(3) of the old Corporations Law of a State or Territory as it applied in relation to the person and the securities exchange immediately before the commencement of this Act in respect of so much of the 12 month period referred to in paragraph (4)(b) as occurred before that commencement.

6 Cessation of liability to levy if fund exceeds the relevant limit

(1) In this section:

high point means $2,000,000, or such lesser amount as is prescribed for the purposes of this definition.

low point means $1,000,000, or such lesser amount as is prescribed for the purposes of this definition.

relevant person, in relation to a securities exchange, has the same meaning as in section 903 of the Corporations Act 2001, as that section continues to apply because of section 1415 or 1420 of the Financial Services Reform (Consequential Provisions) Act 2001.

(2) If the amount in a fidelity fund of a securities exchange exceeds the high point, a relevant person is, subject to subsection (3), exempt from making further payments of the levy imposed by paragraph 4(b) in respect of that fund.

(3) If:

(a) the amount in a fidelity fund of a securities exchange is, because of payments made out of the fund, less than the low point; and

(b) the securities exchange determines that a person who, because of subsection (2), is exempt from making further payments of the levy imposed by paragraph 4(b) in respect of the fund should again be required to make annual payments of that levy;

the person is liable to make payments of that levy accordingly.

7 Regulations

The Governor‑General may make regulations for the purposes of section 6.

8 Transitional matters

(1) Regulations prescribing an amount for the purposes of subsection 903(2) of the old Corporations Law that were in force immediately before the commencement of this Act continue to have effect, and may be amended or repealed, as if they were made under section 7 of this Act for the purposes of the definition of high point in subsection 6(1) of this Act.

(2) Regulations prescribing an amount for the purposes of subsection 903(8) of the old Corporations Law that were in force immediately before the commencement of this Act continue to have effect, and may be amended or repealed, as if they were made under section 7 of this Act for the purposes of the definition of low point in subsection 6(1) of this Act.

(3) If, immediately before the commencement of this Act, an amount was payable by a person to a securities exchange under subsection 902(2) of the old Corporations Law of a State or Territory in this jurisdiction, a liability to pay a levy of the same amount, in respect of the same matter, to the Commonwealth is imposed on the person by this subsection on the commencement of this Act. The levy is payable to the securities exchange as agent for the Commonwealth.

(4) If, immediately before the commencement of this Act, an amount was payable by a person to a securities exchange under subsection 904(1) of the old Corporations Law of a State or Territory in this jurisdiction, a liability to pay a levy of the same amount, in respect of the same matter, to the Commonwealth is imposed on the person by this subsection on the commencement of this Act. The levy is payable to the securities exchange as agent for the Commonwealth.

(5) A determination of an amount in force immediately before the commencement for the purposes of subsection 902(1), 902(2) or 904(1) of the old Corporations Law of a State or Territory in this jurisdiction continues to have effect (and may be dealt with) after the commencement of this Act as if it were:

(a) in the case of a determination for the purposes of subsection 902(1)—a determination for the purposes of subsection 5(1) of this Act; or

(b) in the case of a determination for the purposes of subsection 902(2)—a determination for the purposes of subsection 5(2) of this Act; or

(c) in the case of a determination for the purposes of subsection 904(1)—a determination for the purposes of subsection 5(3) of this Act.

Notes to the Corporations (Securities Exchanges Levies) Act 2001

Note 1

The Corporations (Securities Exchanges Levies) Act 2001 as shown in this compilation comprises Act No. 56, 2001 amended as indicated in the Tables below.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions

Corporations (Securities Exchanges Levies) Act 2001	56, 2001	28 June 2001	15 July 2001 (see s. 2 and Gazette 2001, No. S285)
Financial Services Reform (Consequential Provisions) Act 2001	123, 2001	27 Sept 2001	Schedule 1 (items 228‑230): 11 Mar 2002 (see Gazette 2001, No. GN42) (a) Schedule 1 (item 231): [see (a) and Note 2]	—

(a) The Corporations (Securities Exchanges Levies) Act 2001 was amended by Schedule 1 (items 228‑231) only of the Financial Services Reform (Consequential Provisions) Act 2001, subsections 2(1), (5) and (6) of which provide as follows:

(1) In this section:

FSR commencement means the commencement of item 1 of Schedule 1 to the Financial Services Reform Act 2001.

(5) Items 227 and 231 of Schedule 1 commence at the end of the period of 2 years starting on the FSR commencement. [see Note 2]

(6) Subject to subsections (7) to (17), the other items of Schedule 1 commence on the FSR commencement.

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted

Provision affected	How affected
Ss. 3, 4.................	am. No. 123, 2001
S. 6....................	am. No. 123, 2001

Note 2

Financial Services Reform (Consequential Provisions) Act 2001
(No. 123, 2001)

The following amendment commences on 11 March 2004:

Schedule 1

231 The whole of the Act

Repeal the Act.

As at 11 March 2002 the repeal has not taken effect.

Overview

The Corporations (Securities Exchanges Levies) Act 2001, enacted by the Commonwealth Parliament, was introduced to address the need for a unified national regulatory framework in relation to securities exchanges, particularly in terms of the imposition of levies on fidelity funds. This Act was designed to complement the Corporations Act 2001 and facilitate the transition from the previous regulatory regime under the old Corporations Law of the States and Territories. The policy objective was to ensure that securities exchanges could continue to operate smoothly and effectively under the new legislative framework while maintaining adequate safeguards and protections for investors and the market integrity. The Act imposed specific levies on securities exchange memberships and additional contributions, providing a mechanism for the collection of funds necessary for the operation of fidelity funds.

Scope and Application

The Corporations (Securities Exchanges Levies) Act 2001 applies to the imposition of specific levies on securities exchange members and those seeking membership. These levies include the application for membership fidelity fund contribution, the annual membership fidelity fund contribution, and the securities exchange additional fidelity fund contribution. The Act applies to individuals or entities seeking to become members of a securities exchange or who are already members, and these levies are determined by the securities exchange on a case-by-case basis with certain minimum thresholds and maximum caps. The application of the Act is national, as it applies across Australia, and it is administered under the overarching framework of the Corporations Act 2001. Certain transitional provisions and regulations were carried over from the old Corporations Law of the states and territories to ensure continuity in the application of these levies. Notably, the Act is set to be repealed by the Financial Services Reform (Consequential Provisions) Act 2001, with specific sections of the latter act detailing the timing of the repeal.

Key Provisions

The Corporations (Securities Exchanges Levies) Act 2001 imposes specific levies on securities exchange memberships, ensuring that members contribute to the security and integrity of the securities exchange process. Section 4 outlines three types of levies: the securities exchange (application for membership) fidelity fund contribution (subsection 4(a)), the securities exchange (annual membership) fidelity fund contribution (subsection 4(b)), and any additional fidelity fund contribution (subsection 4(c)). These levies are payable by those seeking to be admitted to membership of a securities exchange or by existing members, as stipulated in the Corporations Act 2001. The amounts of these levies are detailed in section 5, with the application for membership levy set at a minimum of $500, the annual membership levy at a minimum of $100, and the additional fidelity fund contribution levy subject to limits specified in subsections 4(4) and 4(5). The Act imposes obligations on securities exchanges to determine the amounts of these levies for individuals or classes of individuals. It also places the responsibility on members to pay these levies as determined by the securities exchange. Section 6 introduces an exemption mechanism, whereby if the fidelity fund of a securities exchange exceeds a specified high point ($2,000,000, or a lesser amount as prescribed), relevant persons (as defined in section 903 of the Corporations Act 2001) are exempt from further annual levy payments. However, if the fund falls below a low point ($1,000,000, or a lesser amount as prescribed), the securities exchange may determine that the exemption should be revoked, requiring the relevant person to resume annual levy payments. Breaching the obligations set out in this Act could result in legal consequences. While specific penalties are not detailed in the Act, non-compliance with the imposed levies could potentially lead to enforcement actions under related legislation, such as the Corporations Act 2001. Additionally, the Act allows for the creation of regulations to further define and enforce the provisions outlined within it, providing a framework for compliance and penalties where necessary.

Area of Law: Commercial Law; Corporate Law & Governance
Instrument: Act
Concepts: Definitions & Interpretation; Commencement Provisions; Licensing & Registration; Enforcement Powers

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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.

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