Futures Industry (Fees) Regulations (Amendment)

Overview

The Futures Industry (Fees) Regulations (Amendment) 1987 were enacted to amend the existing fees structure within the futures industry, as established under the Futures Industry (Fees) Act 1986. This legislation was introduced to address the need for updated fee structures to ensure that the regulatory costs align with the current operational demands and financial realities of the industry. The amendment was made by the authority of the Governor-General, in accordance with the resolutions of the Ministerial Council for Companies and Securities, and was issued to ensure consistency with the 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. The policy objective of these regulations is to provide a revised schedule of fees for various activities under the Futures Industry Act 1986, including the lodgment of documents, registration, inspections, and the levying of an additional fee for applications for approval as an exempt futures market.

Scope and Application

The Futures Industry (Fees) Regulations (Amendment) Statutory Rules 1987 No. 203 applies to entities and individuals within the futures industry who must pay prescribed fees for various activities under the Futures Industry Act 1986. These activities include the lodgment of documents, registration, inspections, subpoena production, issuance of documents or licenses, inquiries, and document submissions for examination by the Australian Securities and Investments Commission (ASIC). The regulations are applicable across the Commonwealth of Australia, as defined under the agreement between the Commonwealth and the states, which includes all states, the Australian Capital Territory, and the Northern Territory. The fees prescribed by the regulations are determined by the Governor-General and must not exceed $1,000, as stipulated by the Futures Industry (Fees) Act 1986. These regulations were approved by the Ministerial Council for Companies and Securities and submitted to the Federal Executive Council for making by the Governor-General, as per the agreement. The amendments to the fees schedule were introduced to update the rates in line with the current economic conditions and regulatory requirements, ensuring the ongoing effectiveness and efficiency of the futures industry regulation.

Key Provisions

The key operative sections of these regulations, as outlined in the explanatory statement, include the commencement of the regulations on 1 October 1987 (Reg. 1), and the substitution of a new Schedule of fees (Reg. 2) into the Futures Industry (Fees) Regulations. The new Schedule of fees, which replaces the one that came into operation on 1 July 1987, is detailed in Regulation 2. This new Schedule provides for the levying of fees in respect of various activities, such as the lodgment of documents, the registration and inspection of documents, and the issuing of documents and licences by the Commission under the Futures Industry Act 1986 (s. 4(1)). Additionally, it introduces a new fee for applications for approval as an exempt futures market under the Act. The regulations impose several obligations and requirements on the parties and entities they govern. Firstly, they require that fees be paid to the Commonwealth for or in respect of specified activities under the Futures Industry Act 1986, as detailed in the new Schedule of fees (s. 4(1)). This includes fees for the lodgment of documents, registration of documents, inspection of registers, production of documents by the Commission, and the issuance of documents or licences by the Ministerial Council or the Commission. Secondly, the regulations mandate that an additional fee be levied for applications for approval as an exempt futures market under the Act. This requirement ensures that the regulatory body is appropriately compensated for its services and supports the efficient administration of the industry. Breaches of these regulations may result in various civil or criminal consequences, depending on the nature and severity of the violation. The maximum penalties for breaches of the Futures Industry (Fees) Act 1986 are not specified in the explanatory statement, but penalties for breaches of similar legislation typically include fines and, in some cases, imprisonment. It is essential for parties and entities governed by these regulations to comply with the prescribed fees to avoid potential legal repercussions.