National Guarantee Fund (Members of Participating Exchanges) Levy Act 1989
No. 116 of 1989
An Act to impose a levy on members and member organisations of certain securities exchanges
[Assented to 14 July 1989]
BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
Short title
1. This Act may be cited as the National Guarantee Fund (Members of Participating Exchanges) Levy Act 1989.
Commencement
2. This Act commences on the same day as Part 7.10 of the Corporations Act 1989.
Incorporation
3. The Corporations Act 1989 is incorporated, and shall be read as one, with this Act, and shall be so read as if the provisions of this Act were provisions of Division 4 of Part 7.10 of that Act.
Imposition of levy
4. Any levy that is payable by a member, or a member organisation, of a participating exchange under section 941 of the Corporations Act 1989 is imposed by this Act.
Rate of levy
5. (1) The levy is payable at such rate or rates (not exceeding the prescribed rate) as are determined in writing by the participating exchange.
(2) The participating exchange may determine under subsection (1) different rates of levy in respect of different classes of members, or different classes of member organisations, of the participating exchange.
Regulations
6. (1) The Governor-General may make regulations prescribing a maximum rate or maximum rates in relation to participating exchanges, or a particular participating exchange, for the purposes of section 5.
(2) The regulations may prescribe different maximum rates in relation to different classes of members, or different classes of member organisations, of a participating exchange.
[Minister’s second reading speech made in—
House of Representatives on 25 May 1988
Senate on 14 October 1988]
Overview
The National Guarantee Fund (Members of Participating Exchanges) Levy Act 1989 was enacted to address the need for a financial contribution from members and member organisations of participating securities exchanges to support the National Guarantee Fund. This Act, assented to on 14 July 1989, is part of the legislative framework established by the Commonwealth Parliament to regulate financial markets and ensure the stability of securities exchanges. The primary policy objective behind the Act is to impose a levy on the members and member organisations of participating exchanges, contributing to the National Guarantee Fund, which serves as a safeguard to protect the interests of investors and maintain market integrity. This Act incorporates and integrates with the Corporations Act 1989, specifically with Part 7.10, ensuring a cohesive legal structure governing securities exchanges and related financial activities.
Scope and Application
The National Guarantee Fund (Members of Participating Exchanges) Levy Act 1989 applies to members and member organisations of certain securities exchanges participating in the Australian financial market. The Act imposes a levy on these entities as a means of funding the National Guarantee Fund, which is established to cover the costs associated with the clearing and settlement of transactions on participating exchanges. The levy is determined by the participating exchange itself, within the limits set by the Act and any regulations made under it. This Act is incorporated with the Corporations Act 1989, which governs the securities exchanges and their members, and it commences on the same day as Part 7.10 of the Corporations Act. The Act allows the Governor-General to make regulations that can set a maximum rate for the levy, which may vary for different classes of members or member organisations. This ensures that the financial obligations of entities participating in securities exchanges are clearly defined and managed to support the stability of the financial market.
Key Provisions
The National Guarantee Fund (Members of Participating Exchanges) Levy Act 1989 (section 4) mandates the imposition of a levy on members and member organisations of securities exchanges that participate in the National Guarantee Fund. This levy is specifically tied to section 941 of the Corporations Act 1989. The rate at which this levy is payable is determined by the participating exchange, with the flexibility to set different rates for different classes of members or member organisations (section 5). The Governor-General has the authority to make regulations that set a maximum rate for these levies, which can also vary by class of member or member organisation (section 6).
The obligations under this Act primarily concern the participating exchanges and their members or member organisations. Participating exchanges are required to determine the rate of the levy in writing and apply it according to the classes of members or member organisations as they deem appropriate (section 5). Members and member organisations must then comply with these rates as set by the exchange, ensuring that the levy is paid as required. The Act also allows for regulatory oversight by the Governor-General, who can intervene to set maximum rates through regulations, ensuring consistency and fairness across different classes and exchanges (section 6).
In terms of legal consequences, while the Act itself does not explicitly detail offences, penalties, or civil/criminal consequences for non-compliance, the underlying framework provided by the Corporations Act 1989 implies that breaches could result in enforcement actions. These might include fines, legal proceedings, or other penalties as stipulated within the broader corporate regulatory regime. The specific maximum penalties would be determined in accordance with the provisions of the Corporations Act 1989 and any regulations made under the National Guarantee Fund (Members of Participating Exchanges) Levy Act 1989.