Securities Industry Regulations (Amendment)

Administered by Department of the Treasury

Legislation au C2004L00436 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

STATUTORY RULES 1982 No. 125

Issued by the authority of the Attorney-General

 

AMENDMENT OF THE SECURITIES INDUSTRY REGULATIONS

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. The Agreement is set out in the Schedule to the National Companies and Securities Commission Act 1979 (NCSC Act). The purpose of the NCSC Act is to establish the National Companies and Securities Commission (NCSC).

Under clause 32 of the Formal Agreement, the 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, or their delegates, or Ministers acting in their office (Formal Agreement, clauses 19 and 20).


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 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 regulation to the Federal Executive Council for making by the Governor-General.

The Ministerial Council has passed the following resolutions:

“1. The Ministerial Council resolved unanimously pursuant to paragraph 8(1)(b) of the Formal Agreement that:-

Commonwealth

(A) Companies Regulations (Amendment)

The draft Companies Regulations (Amendment) being as set out in the print dated 10th May, 1982;

(B) Companies (Transitional Provisions) Regulations

The draft Companies (Transitional Provisions) Regulations being as set out in the print dated 10th May, 1982;

be approved.


2. The Ministerial Council resolved pursuant to clause 45 of the Formal Agreement that:-

Commonwealth

(A) National Companies and Securities Commission Regulations (Amendment) (S.R. No. 73/82)

The draft National Companies and Securities Commission Regulations (Amendment) (S.R. No. 73/82) being as set out in the print dated 11th May, 1982;

(B) Securities Industry Regulations (Amendment) (S.R. No. 394/81)

The draft Securities Industry Regulations (Amendment) (S.R. No. 394/81) being as set out in the print dated 11th May, 1982; and

(C) Securities Industry Regulations (Amendment) (S.R. No. 50/82)

The draft Securities Industry Regulations (Amendment) (S.R. No. 50/82) being as set out in the print dated 11th May, 1982;

be respectively approved.”


The purpose of the accompanying Regulations is to make a number of minor amendments to the Securities Industry Regulations.

Regulation 1 of the accompanying regulations omits sub-regulations 6(1) and (2) of the Securities Industry Regulations. Those sub-regulations provide that for the purposes of paragraphs 5(4)(e) and 5(7)(c) of the Securities Industry Act 1980 the prescribed percentage (of voting shares in a body corporate) is 20%. The sub-regulations have become superfluous since the addition of sub-section 5(12) of the Securities Industry Act 1980 by proclamation in October 1981. (See Securities Industry Amendment Act (No. 2) 1981, paragraph 4(b)). Sub-section 5(12) provides that a reference in section 5 to the prescribed percentage is a reference to 20% or such lesser percentage as is prescribed by the Regulations.

Regulation 2(a) of the accompanying regulations amends item 1 of the directions specified in Form 2 of the Securities Industry Regulations. Item 1 sets out the terms of sub-section 19(8) of the Securities Industry Act 1980. The proposed amendment takes account of the amendment made to sub-section 19(8) by section 13 of the Securities Industry Amendment Act (No. 2) 1981, which has been proclaimed to come into operation from 1 October 1981.

Regulations 2(b) to (e) inclusive of the accompanying regulations make amendments to form 9 of the Securities Industry Regulations, a notice which a licence holder under the Securities Industry Act 1980 is required to lodge with the NCSC within 21 days of a cessation or change in relation to his licence. The amendments will make it necessary to indicate on what day the changes

referred to in paragraphs 3(c), (d), (e) and (f) of Form 9 occurred. Paragraph 3(c) of Form 9 requires a dealer or investment adviser to state any change of address of his principal place of business. Paragraph 3(d) requires a dealer or investment adviser to state any change of address of the place or places, other than the principal place of business, at which his business is carried on. Paragraph 3(e) requires a dealer or investment adviser to state any change in the name or style of his business, where that name or style is different from his own name. Paragraph 3(f) requires a dealer or investment adviser to state whether he has ceased to be a partner in a certain firm and whether he has become a partner in another firm.

Regulation 2(f) of the accompanying regulations substitutes the word “licensee’s” for “applicant’s” in paragraph (1)(d) of Form 11 of the Securities Industry Regulations (the annual statement by a dealer or investment adviser that is a corporation) since the rest of that Form is directed towards the “licensee” rather than the “applicant”.

Overview

The Securities Industry Regulations (Amendment) Instrument 1982 was enacted to address minor amendments in the Securities Industry Regulations, ensuring consistency with recent legislative changes and maintaining regulatory effectiveness. This instrument was introduced in response to the need to streamline and update regulatory requirements in light of the evolving financial landscape. Enacted by the Federal Executive Council and in accordance with the provisions of the National Companies and Securities Commission Act 1979, the policy objective is to ensure that the securities industry regulations remain relevant and efficient, thereby facilitating the regulation of securities activities across the Commonwealth and the States. The intent is to align the regulatory framework with recent legislative amendments, thus maintaining the integrity and enforceability of the securities laws.

Scope and Application

The Statutory Rules 1982 No. 125, as amended, pertain to the Securities Industry Regulations and are established under the authority of the Attorney-General. These regulations are part of a broader co-operative scheme between the Commonwealth and the states, aimed at providing a uniform system of law and administration for company law and the regulation of the securities industry across the six states and the Australian Capital Territory. The scheme is facilitated by the National Companies and Securities Commission (NCSC), which is responsible for policy and administration in these areas. The NCSC operates under the National Companies and Securities Commission Act 1979 and is directed by the Ministerial Council for Companies and Securities. The regulations are subject to approval by this council and subsequent submission to the Federal Executive Council for formal enactment by the Governor-General. These amendments specifically address modifications to the Securities Industry Regulations, including changes to the prescribed percentage for voting shares, updates to the terms of certain subsections, and adjustments to the forms and notifications required by licence holders under the Securities Industry Act 1980. The scope of these regulations applies to entities and individuals involved in the securities industry, including dealers and investment advisers, and they require compliance with the specified changes across all participating jurisdictions.

Key Provisions

The main operative sections of the accompanying regulations pertain to the Securities Industry Regulations, with several minor amendments being introduced. Regulation 1 removes sub-regulations 6(1) and (2) of the Securities Industry Regulations, which previously set a 20% prescribed percentage for voting shares in a body corporate. This change follows the insertion of sub-section 5(12) in the Securities Industry Act 1980, which allows the Regulations to prescribe a lesser percentage instead. Regulation 2(a) modifies item 1 of Form 2 to align with the amendment to sub-section 19(8) of the Securities Industry Act 1980 made by the Securities Industry Amendment Act (No. 2) 1981. Furthermore, Regulations 2(b) to (e) update Form 9 to require licence holders to specify the exact date of changes in their business, such as changes in address or business name, and changes in partnership status. Finally, Regulation 2(f) corrects a terminology error in Form 11 by replacing “applicant’s” with “licensee’s” in paragraph (1)(d). These regulations impose certain obligations on parties or entities governed by the Securities Industry Act 1980. Licence holders, such as dealers or investment advisers, must ensure that they comply with the updated forms and requirements. Specifically, they must lodge the revised Form 9 within 21 days of any cessation or change in their licence, indicating the precise dates of changes in their business details. The annual statement, Form 11, must now correctly refer to the “licensee” rather than the “applicant.” These changes necessitate that licence holders keep accurate records and promptly update the National Companies and Securities Commission (NCSC) as required. Breach of the requirements set out in these regulations can result in various consequences. The exact nature and severity of these consequences depend on the specific provisions being contravened and the circumstances of the breach. Generally, failure to comply with the new forms and timelines may result in administrative penalties, fines, or other enforcement actions by the NCSC. In cases of significant non-compliance, the NCSC may also consider suspending or revoking the licence of the offending party. Although the specific penalties are not detailed in the accompanying regulations, the potential for sanctions serves as a deterrent against non-compliance. The accompanying regulations introduce a series of minor amendments to the Securities Industry Regulations, which primarily involve updating and clarifying certain forms and terminology. These changes are aimed at ensuring that licence holders accurately and promptly report changes in their business details to the NCSC. By adhering to the updated requirements, licence holders can avoid potential penalties and maintain their compliance with the Securities Industry Act 1980.

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Corporate Law & Governance
Regulatory Standards
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Regulation
Concepts
Definitions & Interpretation
Amendments & Modifications
Reporting & Disclosure Obligations
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Securities Industry Regulations
National Companies and Securities Commission Regulations

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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.