EXPLANATORY STATEMENT
Statutory Rules 1990 No. 160
Issued by the Authority of the Attorney-General
Futures Industry (Fees) Regulations (Amendment)
Subsection 5(1) of the Futures Industry (Fees) Act 1986 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing fees, not in any case exceeding $1,000, for the purposes of subsection 4(1) of the Act. Subsection 5(2) of the Act provides that the power of the Governor-General to make regulations shall be exercised only in accordance with advice that is consistent with resolutions of the Ministerial Council for Companies and Securities (the Council).
2. The Council was established under an Agreement between the Commonwealth and the States, executed on 22 December 1978 (the Agreement), that provides the framework for a co-operative Commonwealth-State scheme for a uniform system of law and administration in relation to company law and the regulation of the securities and futures industries in the six States, the Australian Capital Territory and the Northern Territory of Australia.
3. Under subclause 45(1) of the Agreement, the Council may consider a proposal for the amendment of regulations made under the Commonwealth Acts enacted for the purpose of the co-operative companies and securities scheme. Should the Council approve any draft amending regulation which gives effect to such a proposal, the Commonwealth is then required, under subclause 45(2) of the Agreement, to submit the draft regulation to the Federal Executive Council for making by the Governor-General.
4. The accompanying Regulations are in accordance with a resolution made by the Council.
5. The purpose of the Regulations is to amend the Futures Industry (Fees) Regulations (the Regulations) by substituting a new Schedule of fees for the Schedule of fees that came into operation on 1 July 1989. The fees in the new Schedule have generally been increased in line with the movement in the Consumer Price Index between the December quarters of 1988 and 1989 (i.e. 7.8%).
6. Details of the accompanying Regulations are as follows.
Regulation 1: Commencement
7. This regulation prescribes 1 July 1990 as the date on which the proposed amendments to the Regulations will come into operation.
Regulation 2: Schedule
8. This regulation inserts in the Regulations a new Schedule of fees that are payable for the purposes of subsection 4(1) of the Act. Subsection 4(1) of the Act provides that there shall be paid to the Commonwealth such fees (if any) as are prescribed in respect of the following matters arising from the National Companies’ and Securities Commission’s administration of the Futures Industry Act 1986 -
(a) the lodgment, registration or submission (for examination) of documents;
(b) the inspection or search of registers kept by, or documents in the custody of, the Commission, the production of such registers or documents pursuant to a subpoena, and the issuing of documents or copies of documents; and
(c) the making of inquiries or applications (of or to the Council or the Commission) and the granting of licences, consents or approvals (by the Council or the Commission).
9. The new Schedule provides for the following levels of fees:
| Old Fees | | New Fees | |
| $ | | $ | |
| 4 | | 4 | |
| 10 | | 11 | |
| 16 | | 17 | |
| 34 | | 37 | |
| 42 | | 45 | |
| 80 | | 85 | |
| 100 | | 110 | |
| 170 | | 185 | |
| 830 | | 890 | |
10. To obtain the new level of fees, the old fees were increased by 7.8% (being the increase in the Consumer Price Index between the December quarter of 1988 - on which the old fees were based - and the December quarter of 1989) and rounded as follows:
• below $50 - to the nearest dollar;
• between $50 and $200 - to the nearest $5; and
• over $200 - to the nearest $10.
Overview
The Futures Industry (Fees) Regulations (Amendment) Statutory Rules 1990 No. 160 were enacted to amend the existing fees prescribed under the Futures Industry (Fees) Act 1986. This amendment was necessary to reflect the inflation adjustments in line with the Consumer Price Index movement between the December quarters of 1988 and 1989, which was 7.8%. The amendment was made in accordance with a resolution of the Ministerial Council for Companies and Securities, and subsequently submitted to the Federal Executive Council for the Governor-General's approval. The new fees were rounded according to specific thresholds to ensure consistency and fairness in fee adjustments. The regulations came into effect on 1 July 1990, introducing updated fee structures for various administrative services provided by the National Companies’ and Securities Commission in relation to the futures industry.
Scope and Application
The Futures Industry (Fees) Regulations (Amendment) Statutory Rules 1990 No. 160 apply to the fees prescribed under the Futures Industry (Fees) Act 1986, which are payable for the lodgment, registration or submission of documents, the inspection or search of registers and documents, and the making of inquiries or applications and the granting of licences, consents or approvals by the National Companies' and Securities Commission. These fees are payable to the Commonwealth. The Regulations are applicable on a national scale, as they pertain to the co-operative Commonwealth-State scheme for a uniform system of law and administration in relation to the securities and futures industries across all states and territories in Australia. The amendments to the fees, as per the new Schedule, have been made in accordance with a resolution of the Ministerial Council for Companies and Securities and reflect the increase in the Consumer Price Index between the December quarters of 1988 and 1989. The Regulations came into operation on 1 July 1990, as prescribed by the commencement regulation. The Governor-General has the authority to make these regulations under the Act, provided they do not exceed $1,000 and are consistent with the resolutions of the Ministerial Council for Companies and Securities.
Key Provisions
The main operative sections of the Futures Industry (Fees) Regulations (Amendment) involve the substitution of a new Schedule of fees for the existing one. Regulation 1 (2) specifies the commencement date of 1 July 1990 for these amendments. Regulation 2 (8) introduces a new Schedule of fees, which replace the previous fees set out in the Regulations that came into effect on 1 July 1989. The fees are revised to align with the increase in the Consumer Price Index (CPI) from the December quarter of 1988 to the December quarter of 1989, which was 7.8%.
The Act imposes specific obligations on parties involved in the futures industry, including the payment of fees for various administrative activities. These activities encompass the lodgment, registration, or submission of documents (subsection 4(1)(a) of the Act), the inspection or search of registers and documents (subsection 4(1)(b)), and the making of inquiries or applications as well as the granting of licenses, consents, or approvals (subsection 4(1)(c)). The fees are prescribed to ensure the smooth operation of the National Companies’ and Securities Commission’s administration of the Futures Industry Act 1986.
The Regulations also outline the consequences for non-compliance. While the explanatory statement does not specify particular offences or penalties, the Act generally provides for enforcement mechanisms to ensure that the fees are paid as prescribed. Typically, failure to pay the required fees could result in legal action or other administrative penalties under the relevant legislative framework. Although the explanatory statement does not detail maximum penalties, it is implied that breaches could lead to civil or criminal consequences depending on the nature and severity of the non-compliance. The precise penalties would be in accordance with the provisions of the Futures Industry (Fees) Act 1986 and related laws.