Futures Industry (Fees) Regulations

Overview

The Futures Industry (Fees) Regulations 1986 were enacted under the Futures Industry (Fees) Act 1986 with the objective of establishing a framework for the fees associated with the regulation and operation of the futures industry in Australia. These regulations were introduced to address the need for a structured and consistent fee system to ensure the efficient and effective functioning of the futures markets. The enabling legislation was repealed by Act No. 118 of 1999, but the regulations themselves were amended over the years to reflect changes in the industry and regulatory environment. The regulations are overseen by the Office of Legislative Drafting, Attorney-General’s Department, Canberra, and they specify the fees for various applications, notices, and other administrative tasks related to futures markets, exchanges, and participants.

Scope and Application

The Futures Industry (Fees) Regulations, enacted under the Futures Industry (Fees) Act 1986, establish prescribed fees for various applications, approvals, and notifications related to the futures industry in Australia. These regulations apply to both individuals and corporate entities involved in the futures industry, including futures exchanges, clearing houses, and futures associations, as well as those applying for futures broker’s or futures adviser’s licenses. The fees are designed to cover the costs associated with processing applications and maintaining the Register of Licence Holders, thereby ensuring that the regulatory framework remains efficient and financially sustainable. Although the enabling legislation was repealed by Act No. 118 of 1999, the Regulations themselves have been amended over the years, as evidenced by the various Statutory Rules (SR) listed, which adjust the fees to reflect changes in administrative costs or economic conditions. The regulations encompass a wide array of activities, from submitting applications for declarations to lodging notices of changes, thus providing a comprehensive framework for fee collection within the futures industry.

Key Provisions

The Futures Industry (Fees) Regulations 1986, as amended, set out the prescribed fees for various applications, approvals, and notifications under the Futures Industry (Fees) Act 1986. These fees are specified in the Schedule of the Regulations (regulation 3). For example, the fee for submitting an application for a declaration under subsection 45(2) of the Futures Industry (Fees) Act 1986 that a specified futures market, or a futures market included in a specified class of futures markets, is an exempt futures market is $890 (item 1 of the Schedule). Similarly, the fee for lodging an application under subsection 46(1) for approval of a body corporate as a futures exchange is also $890 (item 2 of the Schedule). The fee for lodging a notice under subsection 54(1) of an amendment to the business rules of a futures exchange, clearing house, or futures association is $85 (item 5 of the Schedule). These fees are meant to cover the administrative costs incurred by the relevant authorities in processing these applications and notifications. The Regulations impose certain obligations and requirements on the parties and entities they govern. For example, parties who wish to submit an application for a declaration under subsection 45(2) of the Futures Industry (Fees) Act 1986 that a specified futures market, or a futures market included in a specified class of futures markets, is an exempt futures market must pay a fee of $890 (item 1 of the Schedule). Similarly, parties who wish to lodge an application under subsection 46(1) for approval of a body corporate as a futures exchange must also pay a fee of $890 (item 2 of the Schedule). The Regulations also require parties to pay a fee for lodging a notice under subsection 54(1) of an amendment to the business rules of a futures exchange, clearing house, or futures association (item 5 of the Schedule). Failure to pay the prescribed fee may result in the application or notification not being processed. The Regulations do not explicitly outline any offences, penalties, or civil/criminal consequences for breach. However, it is likely that failure to pay the prescribed fees may result in the application or notification not being processed, which could have legal consequences for the parties involved. It is important for parties to carefully review the Regulations and ensure that they pay the prescribed fees in order to comply with the obligations and requirements imposed by the Regulations.