Notification of rescission of disallowance
IT IS HEREBY NOTIFIED for general information that the Senate, on 27 November 2014, agreed to the following resolution:
That, for the purposes of paragraph 48(1)(a) of the Legislative Instruments Act 2003, the Senate:
(a) supports the making of regulations re-instating provisions the same in substance as the following provisions of Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014, as contained in Select Legislative Instrument 2014 No. 102: Schedule 1 Items 5 (Accountants’ certificate renewal period); 11 (Stamping fee provision); 12 to 17 (ASX24‑related provisions); 27 (non‑monetary education or training benefit not conflicted remuneration); and 28, 29 and 31 to 35 (Grandfathering arrangements); and
(b) rescinds its disallowance resolution of 19 November 2014 relating to the above regulation, to the extent necessary to permit the re-making of the aforementioned provisions in the regulations.
Rosemary Laing
Clerk of the Senate
Overview
The Legislative Instruments Act 2003, enacted by the Parliament of Australia, was designed to streamline the process of creating legislative instruments, ensuring they are efficiently and effectively developed while maintaining parliamentary oversight. The Act was introduced to address the need for a more robust framework to manage the proliferation of subsidiary legislation and to ensure legislative instruments are made, altered, or revoked in a manner that is consistent with legislative intent and subject to appropriate parliamentary scrutiny. The 2014 notification in the Commonwealth Gazette pertains to the Senate's resolution to rescind its disallowance of specific regulations made under the Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014, allowing for the re-making of certain provisions. This action was taken to permit the reinstatement of regulations concerning accountants' certificate renewal periods, stamping fees, ASX24-related provisions, and grandfathering arrangements, thereby addressing identified gaps in the regulatory framework for financial advice.
Scope and Application
The C2014G01969 Gazetted notification pertains to the Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014, which applies to entities involved in financial advice and corporations subject to the Corporations Act 2001. This notification addresses the rescission of disallowance of these regulations by the Senate, allowing for the reinstatement of specific provisions related to accountants' certificate renewal periods, stamping fees, ASX24-related provisions, non-monetary education or training benefits, and grandfathering arrangements. These regulations impact financial advice entities and corporations operating under the Corporations Act, with the aim of streamlining the future of financial advice in Australia. The rescission extends across the Commonwealth jurisdiction, impacting entities and individuals operating within the scope of the Corporations Act, and does not specify any exclusions or exemptions beyond the noted provisions. The Senate’s action enables the re-making of the specified regulatory provisions, thereby reinstating them for application as originally intended.
Key Provisions
The key provisions of the notification concern the rescission of disallowance by the Senate of certain regulations, as outlined in the Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014. Specifically, the Senate has agreed to rescind its disallowance resolution of 19 November 2014 for certain provisions of these regulations, as per section 48(1)(a) of the Legislative Instruments Act 2003 (section 48(1)(a)). These provisions pertain to accountants’ certificate renewal periods, stamping fees, ASX24-related provisions, non-monetary education or training benefits not considered conflicted remuneration, and grandfathering arrangements. The rescinding of the disallowance resolution means that the Senate now supports the re-making of these provisions in the regulations, thereby permitting their reinstatement (section 48(1)(a)).
The Act imposes certain obligations and requirements on the parties and entities governed by these provisions. For example, accountants must adhere to the renewed certificate requirements, financial institutions must comply with the stamping fee provisions, and entities involved in ASX24 transactions must follow the relevant regulations. Additionally, financial advisors must ensure that any non-monetary education or training benefits they provide do not constitute conflicted remuneration. Furthermore, entities must navigate the grandfathering arrangements correctly to ensure compliance with the regulations.
Breach of any of these provisions can lead to various civil and criminal consequences, depending on the nature and severity of the violation. The specific penalties for each provision are detailed within the relevant sections of the Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014. For instance, failure to comply with the accountants’ certificate renewal period may result in penalties outlined under Schedule 1 Item 5. Similarly, non-compliance with the stamping fee provision may incur penalties as specified under Schedule 1 Item 11. The maximum penalties for such breaches are determined by the specific regulatory framework and may include fines, legal actions, or other sanctions as prescribed by law. It is essential for the governed entities to ensure strict adherence to these provisions to avoid any potential legal repercussions.