Pooled Development Funds Regulation 1992 No. 374
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 374
Issued by Authority of the Minister for Industry, Technology and Commerce
Pooled Development Funds Act 1992
Pooled Development Funds Regulation
Section 76 of the Pooled Development Funds Act 1992 (the Act) provides that the GovernorGeneral may make regulations for the purposes of the Act.
Subsection 59(1) of the Act provides that an appointed member of the Pooled Development Funds Registration Board is to be paid such remuneration as is determined by the Remuneration Tribunal but, if no determination of that remuneration by the Tribunal is in operation, the appointed member is to be paid such remuneration as is prescribed.
Levels of remuneration have been based on the most recent determination for members of the Management and Investment Companies Licensing Board. The Secretariat of the Remuneration Tribunal indicate that this is a suitable benchmark.
Subsection 59(2) of the Act provides that an appointed member of the Pooled Development Funds Registration Board is to be paid such allowances as are prescribed.
Allowances have been based on the most recent determinations for Secretaries of Departments of State by the Remuneration Tribunal.
The proposed Regulations prescribe remuneration and allowances to be paid to appointed members of the Pooled Development Funds Registration Board and define certain terms referred to in Subsection 4(1) of the Act.
Details of the proposed Regulations are as follows.
Regulation 1, Citation, provides that these Regulations will be cited as the Pooled Development Funds Regulations.
Regulation 2, Interpretation, provides that the "Act" referred to in these Regulations is the Pooled Development Funds Act 1992.
Regulation 3, Unregulated investments, prescribes "unregulated investment" in subsection 4(1) of the Act and also includes the prescribing of an "authorised money market dealer". This clarifies applications to which monies may be used if not immediately invested in eligible companies or used for the running costs of the fund.
Regulation 4, Excluded activities, prescribes "excluded activity" in subsection 4(1) of the Act. This clarifies those activities in which a Pooled Development Fund may not invest funds.
Regulation 5, Remuneration and allowances - appointed members, prescribes the levels of remuneration and allowances for the purposes of subsections 59(1) and (2) of the Act to be paid to appointed members of the Pooled Development Funds Registration Board.
Overview
The Pooled Development Funds Regulation 1992 No. 374 was enacted to provide the necessary regulatory framework for the Pooled Development Funds Act 1992, aiming to ensure the proper management and oversight of pooled development funds in Australia. This legislation was introduced to address gaps in the regulation of pooled development funds, providing clarity on permissible investments and the remuneration of board members. The Regulations were issued by authority of the Minister for Industry, Technology and Commerce and were designed to streamline the administration of the Act by prescribing specific terms and setting out the remuneration and allowances for appointed members of the Pooled Development Funds Registration Board. The objective of these Regulations is to support the policy goals of the Act by establishing a clear and consistent approach to the governance and financial management of pooled development funds.
Scope and Application
The Pooled Development Funds Regulation 1992 No. 374 applies to the remuneration and allowances for appointed members of the Pooled Development Funds Registration Board under the Pooled Development Funds Act 1992. This Act operates at the Commonwealth level, and the Regulations are made pursuant to the authority granted by the Minister for Industry, Technology and Commerce. The Regulations prescribe specific remuneration and allowances for the appointed members based on benchmarks set by the Remuneration Tribunal for comparable roles, ensuring consistency in compensation within the governance of pooled development funds. The Regulations also define terms such as "unregulated investment" and "excluded activity," which help clarify the scope of permissible and impermissible investments for pooled development funds. These definitions aim to ensure compliance with the legislative intent by delineating what constitutes acceptable financial activities for funds governed under the Act. The Regulations extend the application of the Act by providing detailed parameters for the prescribed remuneration and allowances, as well as clarifying certain terms used within the Act.
Key Provisions
The Pooled Development Funds Regulation 1992 No. 374, under the authority of the Minister for Industry, Technology and Commerce, outlines key provisions of the Pooled Development Funds Act 1992. These regulations are essential for the operation of the Pooled Development Funds Registration Board and set forth the remuneration and allowances for its appointed members. Regulation 1 establishes the citation of these Regulations as the Pooled Development Funds Regulations. Regulation 2 provides that the "Act" referred to in these Regulations is the Pooled Development Funds Act 1992. Regulation 3 defines "unregulated investment" in subsection 4(1) of the Act, detailing which investments are not immediately eligible for fund use and clarifying the role of an "authorised money market dealer." Regulation 4 specifies "excluded activities" in subsection 4(1) of the Act, indicating the types of investments a Pooled Development Fund may not undertake. Finally, Regulation 5 prescribes the remuneration and allowances for appointed members of the Pooled Development Funds Registration Board, in accordance with subsections 59(1) and (2) of the Act.
The obligations and requirements imposed by the Act and its regulations primarily concern the Pooled Development Funds Registration Board. The Board is responsible for ensuring that the remuneration and allowances for its appointed members are set in line with the prescribed benchmarks. This includes adhering to the most recent determinations for members of the Management and Investment Companies Licensing Board for remuneration, and for Secretaries of Departments of State for allowances. Furthermore, the Board must ensure that any investments by the funds are either in eligible companies or used for the running costs of the fund. If investments are not immediately eligible, they must be classified as "unregulated investments" and managed by an "authorised money market dealer." The Board also has the responsibility of ensuring that funds do not engage in "excluded activities" as prescribed by the regulations.
The Act does not explicitly outline offences, penalties, or civil/criminal consequences for breach within the provided explanatory statement. However, it is reasonable to infer that breaches of the Act or its regulations could lead to various consequences, depending on the nature and severity of the breach. For example, if the Board fails to adhere to the prescribed remuneration and allowances, or if it allows investments in excluded activities, it may face regulatory scrutiny or sanctions. Such breaches could potentially lead to legal action, fines, or other penalties as determined by relevant authorities. The specific consequences would depend on the provisions of the overarching legislation and any relevant case law.