Securities Industry Regulations (Amendment)

Overview

The Securities Industry Regulations (Amendment) 2004 were enacted to amend the Securities Industry Regulations in response to the Northern Territory becoming a party to the Co-Operative Companies and Securities Scheme. This legislative action was carried out under the authority of the Securities Industry Act 1980, which allows the Governor-General to make regulations necessary for the implementation of the Act, subject to the approval of the Ministerial Council for Companies and Securities. The Council's resolutions must be adhered to, in line with the agreement established between the Commonwealth and the states on 22 December 1978. The primary objective of these amendments is to update the prescribed offices listed in the Securities Industry Regulations to reflect the inclusion of the Northern Territory and to remove outdated provisions that are no longer necessary due to changes in other related legislation.

Scope and Application

The Securities Industry Regulations (Amendment) Statutory Rules 1986 amend the Securities Industry Regulations (SIR) to incorporate changes consequent upon the Northern Territory becoming a party to the Co-Operative Companies and Securities Scheme. These regulations, approved by the Ministerial Council for Companies and Securities and submitted to the Federal Executive Council, modify SIR regulation 6 to add new prescribed offices under the Securities Industry Act 1980. Specifically, the new paragraphs declare the office of Treasurer of the Northern Territory, the office of Public Trustee for the Northern Territory, the office of Master of the Supreme Court for the Northern Territory, and the office of the Commissioner for Corporate Affairs, established under the Companies (Administration) Act 1986 of the Northern Territory, as prescribed offices for the purposes of paragraph 5(8)(b) of the Act. This amendment ensures that relevant interests in securities held by individuals in these prescribed offices are disregarded under the Act. The regulations extend to the Commonwealth and the six States and the Australian Capital Territory, as per the agreement establishing the Ministerial Council for Companies and Securities.

Key Provisions

The Securities Industry Regulations (Amendment) primarily amends regulation 6 of the Securities Industry Regulations (SIR) to address the inclusion of the Northern Territory in the Co-Operative Companies and Securities Scheme. This is done by adding new paragraphs (zf, zg, zh, and zi) to regulation 6, which declare specific offices within the Northern Territory as prescribed offices under the Securities Industry Act 1980 (the Act). These offices include the Treasurer of the Northern Territory, the Public Trustee for the Northern Territory, the Master of the Supreme Court for the Northern Territory, and the Commissioner for Corporate Affairs, established under the Companies (Administration) Act 1986 of the Northern Territory. These amendments ensure that certain interests held by individuals in these offices are disregarded for the purposes of the Act. The obligations imposed by this Act on the parties and entities it governs primarily involve the recognition and acknowledgment of the specified offices as prescribed offices under the Securities Industry Act 1980. This means that any securities held by individuals in these offices will be disregarded for certain purposes under the Act, providing a clear framework for compliance with securities regulations in the Northern Territory. The amendment also involves the administrative task of updating the regulations to reflect these new prescribed offices, ensuring that the regulatory framework remains current and applicable to the changing landscape of the securities industry. In terms of offences and penalties, the Securities Industry Regulations (Amendment) itself does not outline specific penalties for non-compliance with the new regulations. However, under the Securities Industry Act 1980, failure to comply with the regulations could potentially result in civil or criminal penalties. The Act provides for penalties for various offences, including fines and imprisonment, depending on the severity of the breach. The maximum penalties are set out in the Act and can vary based on the specific provisions being breached. For example, section 1311E of the Criminal Code Act 1995 applies to offences under the Securities Industry Act, which can include fines up to $210,000 or imprisonment for up to five years, or both, for individuals, and up to $1,050,000 for bodies corporate. Additionally, under section 1300 of the Criminal Code Act 1995, the Act also provides for civil penalties for breaches of the Securities Industry Act, which can include fines of up to $210,000 for individuals and $1,050,000 for bodies corporate. These penalties underscore the importance of adhering to the regulatory framework and ensuring that all prescribed offices and their interests in securities are correctly identified and disregarded as required by the Act. Non-compliance could lead to significant legal and financial repercussions, reinforcing the need for accurate and timely updates to the regulations.