Securities Industry Act 1980

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Securities Industry Act 1980

Act No. 66 of 1980 as amended

This compilation was prepared on 17 October 2000
taking into account amendments up to Act No. 92 of 1989

The text of any of those amendments not in force
on that date is appended in the Notes section

Prepared by the Office of Legislative Drafting,
Attorney‑General’s Department, Canberra

 

 

 

Contents

Part I—Preliminary

1 Short title [see Note 1]...........................

2 Commencement [see Note 1].......................

3 Object.....................................

Part IA—Interpretation

3A Effect of this Part..............................

4 Interpretation.................................

5 Relevant interests in securities.......................

6 Associated persons.............................

6A Businesses of a particular kind.......................

6B Carrying on a business: alone or together with others.........

6C Exempt dealers and exempt investment advisers............

6D Inclusion in official list...........................

6E Investment advice business.........................

6F Proper authority; invalid authority....................

6G Recognised licensee must be connected with State or Territory concerned             

6H Representatives...............................

6J Securities business..............................

Part II—Administration

Division 1—General

7 Interpretation.................................

8 Power of Commission to require production of books.........

9 Power of Magistrate to issue a warrant to seize books.........

10 Offences....................................

10A Copies or extracts of books to be admitted in evidence........

11 Privilege....................................

12 Disclosure to Commission.........................

13 Investigation of certain matters......................

14 Power of Court to make certain orders..................

Division 2—Investigations

15 Interpretation.................................

16 Investigations.................................

17 Conduct of investigations..........................

18 Powers of Commission and inspectors appointed under corresponding laws             

19 Powers of inspectors............................

20 Investigation deemed to be a proceeding.................

21 Record of examination...........................

22 Record to accompany report........................

23 Admissibility of record of examination in evidence in proceedings against person examined             

24 Admissibility in other proceedings of statements at an examination.

25 Weight of evidence.............................

26 Credibility of person who made statements...............

27 Determination of objection to admissibility of statement.......

28 Delegation by inspector...........................

29 Reports of investigations..........................

30 Provisions relating to reports........................

31 Commission’s powers in respect of books................

32 Privileged communications.........................

33 Expenses of investigation..........................

34 Concealing etc. of books relating to securities..............

35 Power of Commission to make certain orders..............

36 Certain powers not to be delegated....................

Part IIA—Australian Stock Exchange Limited

36A Interpretation.................................

36B Incorporation.................................

36C Names of Exchange and Exchange subsidiaries.............

36D Additional functions and powers.....................

36E Memorandum, articles, listing rules and business rules of Exchange.

36F New memorandum and articles of nominated exchange........

36G Membership of Exchange.........................

36H Membership of nominated exchange...................

36J Disciplinary proceedings in respect of past conduct of nominated exchange members             

36K Seat redemption scheme..........................

36L Exchange to take over main board listing agreements.........

36M Transfer of certain assets of nominated exchange............

36N Transfer of Part VIII deposits held by nominated exchange......

36P How Parts VIII and IX apply in relation to a local Exchange subsidiary

Overview

The Securities Industry Act 1980 was enacted by the Australian Capital Territory (ACT) to regulate the securities industry within the ACT. The primary objective of this Act is to ensure the orderly operation of the securities market, maintain investor confidence, and protect the public from fraudulent and manipulative practices in the securities industry. This Act applies to various aspects of the securities industry, including licensing requirements for dealers and investment advisers, the conduct of securities business, and the operation of securities exchanges. The Act was passed by the ACT Legislative Assembly and has been amended several times to enhance its effectiveness and address emerging issues in the securities market. Key provisions of the Act include licensing requirements, conduct standards, penalties for violations, and mechanisms for investigation and enforcement.

Scope and Application

The Securities Industry Act 1980 applies to the regulation of the securities industry in the Australian Capital Territory, with its primary objective being the oversight and governance of securities businesses and their participants. The Act governs natural persons and entities such as companies, partnerships, and other corporate structures engaged in securities business, which includes dealing in securities, providing investment advice, and trading on stock markets. The Act applies to the activities and conduct of dealers, investment advisers, and financial journalists, and it regulates the establishment and operation of securities exchanges. It also encompasses the administration of the securities industry, the conduct of securities business, and the resolution of disputes and claims related to securities transactions. Notably, the Act imposes specific obligations and restrictions on the use of titles like "stockbroker" and "sharebroker" unless the person or entity is a member of a securities exchange or holds a relevant licence. The Act also includes provisions for the establishment and operation of fidelity funds, the creation of a National Guarantee Fund, and the setting of industry standards and compliance measures. Certain aspects of the Act may be extended or restricted through subordinate instruments, allowing for adjustments in application and enforcement as needed.

Key Provisions

  • The Securities Industry Act 1980 primarily regulates the securities industry within the Australian Capital Territory. The Act includes provisions that outline the main requirements for operating in the securities industry, the obligations of industry participants, and the penalties for non-compliance. Section 43 stipulates that carrying on a securities business requires a dealer's licence unless the dealer is an exempt dealer. Similarly, sections 45 and 47 mandate that providing investment advice and acting as an investment adviser necessitates an investment adviser's licence, with exemptions for recognised and exempt investment advisers. Licences are subject to various conditions and restrictions, including those related to the financial status, experience, and integrity of the applicant as outlined in sections 48, 48A, and 51.
  • The Act imposes several obligations on industry participants. Dealers and investment advisers must notify the Commission of any breaches of their licence conditions within one day (section 52). They must also furnish the Commission with specified information regarding their securities business as directed (section 53). Representatives acting on behalf of dealers and investment advisers require proper authority from their principals (sections 60A and 60B), and principals are held liable for their representatives' conduct under certain circumstances (Division 4 of Part IV). Section 71 mandates that dealers maintain accurate accounting records and submit them to the Commission. Moreover, sections 68B to 68G detail the requirements for making investment recommendations, ensuring that clients are informed if the adviser's interests might influence the recommendation and that the adviser has a reasonable basis for the recommendation.
  • The Act sets out various offences and penalties for breaches. For example, section 10 makes it an offence to refuse or fail to comply with a requirement to produce books or provide information, with penalties of up to $10,000 or two years imprisonment, or both. Section 123 to 129 detail offences related to market manipulation, false or misleading statements, and fraudulent inducements to deal in securities, with penalties ranging up to $20,000 or five years imprisonment for individuals, and $50,000 for bodies corporate. Section 138 addresses the falsification of records, carrying a penalty of up to $5,000 or one year imprisonment. Additionally, section 141 establishes general penalty provisions, including fines up to $500 for offences not specified elsewhere in the Act. The Act also includes provisions for civil and criminal consequences, such as disqualification from holding a licence (sections 62A to 62S) and the potential for injunctive relief and court-ordered compensation (sections 147 to 149A).

Legal classification tags

Area of Law
Commercial Law
Financial Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Offence Provisions
Licensing & Registration
Enforcement Powers
Penalties
Compliance Obligations
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.