EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO. 147
ISSUED BY THE AUTHORITY OF THE ATTORNEY-GENERAL
SECURITIES INDUSTRY (FEES) REGULATIONS (AMENDMENT)
Sub-section 5(1) of the Securities Industry (Fees) Act 1980 (“the Act”) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing fees, not in any case exceeding $1,000 for the purposes of sub-section 4(1) of the Act. Sub-section 5(2) of the Act provides that the power of the Governor-General to make regulations shall be exercised only in accordance with advice that is consistent with resolutions of the Ministerial Council for Companies and Securities (“the Council”).
2. The Council was established under an agreement between the Commonwealth and the States, executed on 22 December 1978 (“the 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.
3. Under sub-clause 45(1) of the agreement, the Council may consider a proposal for the amendment of regulations made under the Commonwealth Acts enacted for the purpose of the co-operative companies and securities scheme. Should the Council approve any draft amending regulation which gives effect to such a proposal, the Commonwealth is then required, under sub-clause 45(2) of the agreement, to submit the draft regulations to the Federal Executive Council for making by the Governor-General.
4. The accompanying regulations are identical in form and substance to draft regulations approved by the Council.
5. The purpose of the regulations is to amend the Securities Industry (Fees) Regulations (“the Regulations”) by substituting a new Schedule of fees for the Schedule of fees that came into operation on 1 October 1984.
6. Details of the accompanying regulations are as follows:
Regulation 1: Commencement
7. This regulation prescribes 1 July 1986 as the date on which the regulations come into operation.
Regulation 2: Schedule
8. This regulation inserts in the Regulations a new Schedule of fees that are payable for the purposes of sub-section 4(1) of the Act. That sub-section provides:-
“4.(1) There shall be paid to the Commonwealth for or in respect of -
(a) the lodgment of documents with the Commission under the Securities Industry Act 1980;
(b) the registration of documents under that Act or the inspection or search of registers kept by, or documents in the custody of, the Commission under that Act;
(c) the production by the Commission, pursuant to a subpoena, of any register kept by, or documents in the custody of, the Commission under that Act;
(d) the issuing of documents or copies of documents, the granting of licences, consents or approvals or the
doing of other acts or things by the Ministerial Council or the Commission under that Act; and
(e) the making of inquiries of, or applications to, the Ministerial Council or the Commission in relation to matters arising under that act,
such fees (if any) as are prescribed.”
9. The new Schedule provides for the following levels of fees:-
| Old Fees | New Fees | |
| $ | $ | |
| 3 | 4 | |
| 6 | 7 | |
| 12 | 13 | |
| 24 | 17 | |
| 30 | 33 | |
| 60 | 65 | |
| 120 | 135 | |
| 590 | 660 | |
10. To obtain the new level of fees, the old fees were (with the exception set out in the next paragraph) increased by 11.4% (being the increase in the Consumer Price Index between the March quarter of 1984 - on which the old fees were based - and the December quarter of 1985) and rounded as follows:
• below $50 - to the nearest dollar;
• between $50 and $200 - to the nearest $5; and
• over $200 - to the nearest $10.
11. As the old fee of $3 was last increased on 1 October 1983, the Mininsterial Council decided that it would be appropriate to increase it to $4.
Overview
The Securities Industry (Fees) Regulations (Amendment) 1986 were enacted to align the fees charged under the Securities Industry (Fees) Act 1980 with changes in the Consumer Price Index. The Act was established to address the need for a uniform system of law and administration in relation to company law and the regulation of the securities industry across the Commonwealth and the States. The Ministerial Council for Companies and Securities, formed under an agreement executed on 22 December 1978, approved the draft amending regulations, which the Commonwealth then submitted to the Federal Executive Council for approval by the Governor-General. The primary objective of these regulations was to update the Schedule of fees that came into operation on 1 October 1984, reflecting the economic changes over the preceding period. The new fees were calculated based on an 11.4% increase in the Consumer Price Index between the March quarter of 1984 and the December quarter of 1985, with specific rounding rules applied depending on the fee amount.
Scope and Application
The Securities Industry (Fees) Regulations (Amendment) Statutory Rules 1986, issued under the authority of the Attorney-General, amend the existing Securities Industry (Fees) Regulations by updating the fees payable for various activities under the Securities Industry Act 1980. The Act applies to entities and individuals who are required to pay fees for lodgment, registration, inspection, production of documents, issuance of documents, granting of licenses or approvals, and making inquiries or applications related to the securities industry in Australia. The fees prescribed in the new regulations are intended to reflect the increase in the Consumer Price Index between the March quarter of 1984 and the December quarter of 1985. These regulations are made in accordance with advice consistent with the resolutions of the Ministerial Council for Companies and Securities, a body established under an agreement between the Commonwealth and the States to facilitate a uniform system of law and administration in relation to company law and the regulation of the securities industry across Australia. The new fees are effective from 1 July 1986 and are applicable nationally, as they are consistent with the resolutions of the Ministerial Council for Companies and Securities. There are no stated exclusions, exemptions, or thresholds in these regulations. The application of these fees is further extended or restricted through subordinate instruments as necessary.
Key Provisions
The Securities Industry (Fees) Regulations (Amendment) primarily serve to update the fees associated with various activities under the Securities Industry (Fees) Act 1980 (the "Act"). Regulation 2 introduces a new Schedule of fees (section 8), which replaces the previous Schedule that had been in effect since 1 October 1984. The new fees are calculated based on a 11.4% increase in the Consumer Price Index from the March quarter of 1984 to the December quarter of 1985, except for the fee of $3, which was increased to $4 due to its last update on 1 October 1983. The new fee levels are rounded according to a specific formula, depending on the amount of the old fee (section 10).
These regulations impose specific obligations on entities and individuals subject to fees under the Act. For instance, any entity or individual required to lodge documents with the Commission, register documents, inspect or search registers, or obtain documents from the Commission must now pay the fees as prescribed in the new Schedule (section 4(1) of the Act). Similarly, those seeking the issuance of documents, licences, consents, approvals, or other actions from the Ministerial Council or the Commission must adhere to the new fee structure (section 4(1) of the Act). The fees must be paid as stipulated in the updated Schedule, ensuring compliance with the revised financial obligations under the Act.
Breach of these regulations can lead to legal consequences. While the explanatory statement does not explicitly detail offences, penalties, or specific civil or criminal consequences for non-compliance, it is reasonable to infer that failure to pay the prescribed fees could result in legal action under the Act. The maximum penalty for such breaches would typically be aligned with the provisions of the Securities Industry (Fees) Act 1980, which may include fines and other legal repercussions. Given the statutory nature of these regulations, any failure to comply with the fee schedule could potentially lead to enforcement actions by the relevant authorities.