EXPLANATORY STATEMENT
STATUTORY RULES 1983 NO.: 186
Issued by the authority of the Attorney-General
Securities Industry (Fees) Regulations (Amendment)
1. On 22 December 1978 the Commonwealth and the States executed a Formal Agreement that provides the framework for a co-operative Commonwealth-State scheme for a uniform system of law and administration in relation to company law and the regulation of the securities industry in the six States and the Australian Capital Territory.
2. Under clause 32 of the Formal Agreement, the National Companies and Securities Commission (NCSC) is to have responsibility for the entire area of policy and administration with respect to company law and the regulation of the securities industry, subject to directions by the Ministerial Council for Companies and Securities. The Ministerial Council consists of Commonwealth and State Ministers responsible for administering the law relating to companies and the regulation of the securities industry. (Formal Agreement, clauses 19 and 20).
3. The Securities Industry (Fees) Act 1980, (‘the Act’), is an Act relating to fees payable for the purposes of the Securities Industry Act 1980, which provides a law in relation to the regulation of trading in securities, stock exchanges, brokers and the licensing of investment advisers and the securities industry generally through the National Companies and Securities Commission in the Australian Capital Territory.
4. Under section 4 of the Act fees are payable to the Commonwealth for or in respect of, inter alia, the lodgment of documents with the Commission, the registration of documents or the inspection or search of registers or documents kept by the Commission, the issuing of documents, the granting of licenses and consents or approvals or the doing of acts or things by the Ministerial Council or the Commission under the Securities Industry Act 1980.
5. The fees payable for the purposes of sub-section 4(1) of the Act are prescribed in the Schedule to the Securities Industry (Fees) Regulations, (‘the Regulations’).
6. Under sub-clause 45(1) of the Formal Agreement, the Ministerial Council may consider a proposal for the amendment of regulations made under the Commonwealth Acts enacted for the purposes of the co-operative scheme. Should the Ministerial Council approve any draft amending legislation which gives effect to such a proposal, the Commonwealth is then required, under sub-clause 45(2) of the Agreement, to submit the draft regulation to the Federal Executive Council for making by the Governor-General.
7. On 1 September 1983 the Ministerial Council resolved that the Companies (Fees) Regulations (Amendment) (print dated 18 August 1983), the Companies (Acquisition of Shares - Fees) Regulations (Amendment) (print dated 15 August 1983) and the Securities Industry (Fees) Regulations (Amendment) (print dated 15 August 1983) should be amended by increasing all current fees by 10% rounded up to the nearest whole dollar, except for $1 fees which are to remain unchanged.
9. The amending Regulation has been prepared in accordance with the resolution of the Ministerial Council.
Overview
The Securities Industry (Fees) Regulations (Amendment) Statutory Rules 1983 No. 186, issued under the authority of the Attorney-General, address the need to amend the fees prescribed under the Securities Industry (Fees) Act 1980. Enacted in 1983 by the Federal Executive Council, these regulations aim to adjust the fees payable for services rendered by the National Companies and Securities Commission and the Ministerial Council for Companies and Securities, as part of a broader cooperative scheme between the Commonwealth and the States. The underlying policy objective is to ensure the effective administration and regulation of the securities industry while maintaining the financial sustainability of the regulatory framework. The increase in fees, as approved by the Ministerial Council and implemented through these regulations, reflects the need to adjust for inflation and the rising costs of administration.
Scope and Application
The Securities Industry (Fees) Regulations (Amendment) Statutory Rules 1983 No.: 186 applies to all entities and individuals involved in the securities industry within the Commonwealth and Australian Capital Territory, as well as those required to lodge documents with the National Companies and Securities Commission. This includes stockbrokers, investment advisers, and any entities involved in trading securities or stock exchanges. The amendment, issued under the authority of the Attorney-General, adjusts fees prescribed under the Securities Industry (Fees) Act 1980, thereby affecting the financial obligations of these entities. The amendment is pursuant to the co-operative Commonwealth-State scheme framework established by the Formal Agreement executed in 1978, which mandates a uniform system of law and administration across states and territories regarding company law and securities regulation. The Ministerial Council's resolution to increase fees by 10%, except for fees already at $1, extends the application of these regulations to encompass broader adjustments to fees as stipulated in the amending Regulations.
Key Provisions
The Securities Industry (Fees) Regulations (Amendment) Statutory Rules 1983 No. 186, issued under the authority of the Attorney-General, amends the Securities Industry (Fees) Regulations to increase certain fees by 10%. This amendment is pursuant to a resolution of the Ministerial Council for Companies and Securities, which operates under the framework established by the Formal Agreement between the Commonwealth and the States. The amendment affects the fees payable under section 4 of the Securities Industry (Fees) Act 1980, which includes charges for the lodgment of documents with the National Companies and Securities Commission, the registration of documents, and other related activities.
The Regulations impose a requirement on parties subject to the Securities Industry (Fees) Act 1980 to pay the amended fees for specified activities. This means that any person or entity that lodges documents with the Commission, registers documents, or engages in other activities specified in section 4 must pay the new fees as prescribed in the Schedule to the amended Regulations. This obligation ensures that the fees are updated to reflect changes in economic conditions and the costs associated with administering the securities industry.
Failure to comply with the requirements to pay the prescribed fees may result in civil or criminal consequences, although the specific penalties are not detailed in the explanatory statement. Generally, non-compliance with statutory fee requirements can lead to fines or other legal repercussions, as stipulated by the relevant legislation. The maximum penalties for such breaches would be as prescribed under the Securities Industry Act 1980 or any related Acts, which may include substantial fines or other legal sanctions for serious or repeated offences. It is important for practitioners to ensure compliance with these fee requirements to avoid potential legal issues.