EXPLANATORY STATEMENT
Statutory Rules 1990 No. 161
Issued by the Authority of the Attorney-General
Securities Industry (Fees) Regulations (Amendment)
Subsection 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 subsection 4(1) of the Act. Subsection 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 and futures industries in the six States, the Australian Capital Territory and the Northern Territory of Australia.
3. Under subclause 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 subclause 45(2) of the Agreement, to submit the draft regulation to the Federal Executive Council for making by the Governor-General.
4. The accompanying Regulations are in accordance with a resolution made 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 July 1989. The fees in the new Schedule have generally been increased in line with the movement in the Consumer Price Index between the December quarters of 1988 and 1989 (i.e. 7.8%).
6. Details of the accompanying Regulations are as follows.
Regulation 1: Commencement
7. This regulation prescribes 1 July 1990 as the date on which the proposed amendments to the Regulations will 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 subsection 4(1) of the Act. Subsection 4(1) of the Act provides that there shall be paid to the Commonwealth such fees (if any) as are prescribed in respect of the following matters arising from the National Companies and Securities Commission’s administration of the Securities Industry Act 1980 -
(a) the lodgment, registration or submission (for examination) of documents;
(b) the inspection or search of registers kept by, or documents in the custody of, the Commission, the production of such registers or documents pursuant to a subpoena, and the issuing of documents or copies of documents; and
(c) the making of inquiries or applications (of or to the Council or the Commission) and the granting of licences, consents or approvals (by the Council or the Commission).
9. The new Schedule provides for the following levels of fees:
| Old Fees | | New Fees | |
| $ | | $ | |
| 4 | | 4 | |
| 10 | | 11 | |
| 16 | | 17 | |
| 34 | | 37 | |
| 42 | | 45 | |
| 80 | | 85 | |
| 100 | | 110 | |
| 170 | | 185 | |
| 830 | | 890 | |
10. To obtain the new level of fees, the old fees were increased by 7.8% (being the increase in the Consumer Price Index between the December quarter of 1988 - on which the old fees were based - and the December quarter of 1989) 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.
Overview
The Securities Industry (Fees) Regulations (Amendment) Statutory Rules 1990 No. 161, issued under the authority of the Attorney-General, was enacted to amend the existing fees structure set out in the Securities Industry (Fees) Regulations, 1989. These regulations were introduced to align the fees charged under the Securities Industry (Fees) Act 1980 with inflation, specifically the movement in the Consumer Price Index between the December quarters of 1988 and 1989, which stood at 7.8%. The power to make these amendments was exercised by the Governor-General, as per subsection 5(1) of the Act, and was advised by resolutions of the Ministerial Council for Companies and Securities. The Council, established under the Agreement between the Commonwealth and the States executed on 22 December 1978, approved the proposal for amending the regulations, thereby requiring the Commonwealth to submit the draft regulation to the Federal Executive Council for the Governor-General’s making. The primary objective of these amendments was to update the fees to reflect the current economic conditions, ensuring that the fees remain relevant and proportionate to the administrative costs involved.
Scope and Application
The Securities Industry (Fees) Regulations (Amendment) Statutory Rules 1990 No. 161 applies to the fees prescribed under the Securities Industry (Fees) Act 1980. These fees are payable in respect of matters arising from the administration of the Securities Industry Act 1980, including the lodgment, registration or submission of documents, the inspection or search of registers, the issuance of documents, and the making of inquiries, applications, and the granting of licenses, consents, or approvals. The fees apply across the Commonwealth, state, and territory jurisdictions of Australia, as the Act is part of a cooperative scheme established under an Agreement between the Commonwealth and the States. The fees are subject to the approval of the Ministerial Council for Companies and Securities and must not exceed $1,000. The application of the Act may be extended or restricted through subordinate instruments made by the Governor-General, in accordance with advice from the Ministerial Council. The Regulations amend the existing Schedule of fees to increase them by 7.8%, reflecting the movement in the Consumer Price Index, and come into operation on 1 July 1990.
Key Provisions
The Securities Industry (Fees) Regulations (Amendment) Statutory Rules 1990 No. 161, issued by the authority of the Attorney-General, primarily revise the fees payable under the Securities Industry (Fees) Act 1980 (the Act). Regulation 1 (section 7) sets 1 July 1990 as the commencement date for these amendments. Regulation 2 (section 8) introduces a new Schedule of fees, replacing the previous one that took effect on 1 July 1989. The new fees, detailed in the Schedule, cover matters such as the lodgment, registration, or submission of documents, the inspection or search of registers and documents, and the granting of licenses and approvals by the National Companies and Securities Commission or the Ministerial Council for Companies and Securities.
These regulations impose specific obligations on the entities governed by them. The new fees are applicable for activities such as the lodgment, registration, or submission of documents, inspection or search of registers, issuance of documents or copies, and the making of inquiries or applications for licenses and approvals. The entities must ensure that they comply with the new fee structure as prescribed in the amended Schedule of fees. This means that when they engage in activities that fall under these categories, they must pay the new fees as stipulated.
Failure to comply with the new fee structure could result in civil or criminal consequences, although the specific penalties are not outlined in the provided text. Under the Securities Industry (Fees) Act 1980, breaches of the Act may attract penalties that could include fines or other civil penalties. However, the exact nature and extent of the penalties are not detailed in the accompanying explanatory statement, and further reference to the primary Act or other relevant legal sources would be necessary to fully understand the potential repercussions for non-compliance.