Securities Industry Regulations (Amendment)

Legislation au C2004L00446 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Statutory Rules 1989 No. 294

Issued by the Authority of the Attorney-General

Securities Industry Regulations (Amendment)

Subsection 150(1) of the Securities Industry Act 1980 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters that are necessary or convenient to be prescribed for carrying out or giving effect to the Act. Subsection 150(5) 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 regulations 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 accompanying Regulations are also expressed to be under section 4 of the Acts Interpretation Act 1901. That section provides that where an Act that does not come into operation immediately upon its enactment amends another Act in such a manner that the other Act, as amended, will confer power to make regulations then, unless the contrary intention appears, that power may be exercised before the amending Act comes into operation. Any regulations made under section 4 of the Acts Interpretation Act 1901 take effect on the day on which the Act concerned comes into operation or on the day on which the regulations would have taken effect if the amending Act had been in operation when the regulations were made, whichever is the later.

6. Part 8 of the Co-operative Scheme Legislation Amendment Act 1989 (the 1989 Act), being the Part of the 1989 Act for which these Regulations were made, was proclaimed to come into operation on 1 November 1989.

7. The purpose of the Regulations is to make changes of a technical nature to the Securities Industry Regulations. The need for the changes arises from amendments to the Act (made by the 1989 Act) which effect deregulatory reforms concerning the licensing of participants in the securities industry.

8. Details of the accompanying Regulations are as follows:

Regulation 1: Principal Regulations

The Principal Regulations referred to are the Securities Industry Regulations.

Regulation 2: Interpretation

This regulation amends Regulation 2 of the Principal Regulations by omitting the definition of life office from that regulation. This omission is consequential upon the removal of the exemption given to life offices under


Regulation 26(7)(b) of the Principal Regulations from requirements concerning securities dealers licences. It also substitutes a new definition of superannuation scheme to take account of changes to other legislation which is used to define the term in the Principal Regulations.

Regulation 3: Insertion of new Regulation 4A: Annexures accompanying forms

The format for and endorsement of annexures are prescribed by new Regulation 4A inserted by this regulation.

Regulations 4 and 6: Repeal of Regulations 15 and 17

Regulations 15 and 17 of the Principal Regulations, which relate to applications for and variation of dealers representatives and investment representatives licences, are repealed by regulations 4 and 6 respectively. The repealed Regulations are no longer necessary as representatives will no longer be required to hold a licence. Representatives will instead be required to hold a proper authority issued by their principal.

Regulation 5: Amendment of Regulation 16: Application for licence to be enclosed in sealed envelope

Regulation 5 amends regulation 16 of the Principal Regulations. The amendment is consequential upon the repeal of regulation 15 of the Principal Regulations by regulation 4.

Regulation 7: New Regulations substituted for Regulations 24 and 25

This regulation repeals regulations 24 and 25 of the Principal Regulations which relate to lodgment of an annual statement by licensed representatives. The repeal is consequential upon the discontinuation of the requirement for representatives to be licensed.

The regulation also substitutes two new regulations in placed of the repealed regulations.


Proposed Regulation 24: Register of holders of proper authorities: prescribed information

Paragraph 60E(3)(e) of the Act requires that dealers and investment advisers include in a register certain information concerning persons who hold proper authorities from them. Proposed Regulation 24 prescribes the date of birth of a holder of a proper authority to be one of the items which the register must contain.

Proposed Regulation 25: Amount payable for copy of a register

Proposed Regulation 25 prescribes an amount which a licensee may require for provision of a copy of the licensee’s register of persons who hold proper authorities from the licensee.

Regulation 8: Amendment of Regulation 26: Exemptions from licensing, etc

This regulation amends regulation 26 of the Principal Regulations by:

- removing from subregulation 26(7) an exemption formerly granted to life offices dealing with securities in relation to the carrying on of the business of life insurance from the need to comply with the licensing requirements of the Act;

- making amendments to subregulations 26(8) and 26(10) which are consequential upon the removal from the Act of the requirement that representatives be licensed; and

- removing the exemption formerly granted to bank employees from the need to comply with the licensing requirements of the Act in certain circumstances.


Regulation 9: Amendment of Regulation 42: Notice under subsection 90(2) or (3) or 90A(1) of the Act

Subsection 90(2) and (3) require the Commission to be notified of the location of registers of relevant interests maintained by licensees and financial journalists. Section 90 is to be repealed and replaced by two sections, 90 and 90A, which expand these requirements. Regulation 9 amends regulation 42 of the Principal Regulations to reflect this change in the Act.

Overview

The Securities Industry Regulations (Amendment) Statutory Rules 1989 No. 294 were enacted to address the need for technical changes in the Securities Industry Regulations in light of deregulatory reforms concerning the licensing of participants in the securities industry. These reforms were implemented through the Co-operative Scheme Legislation Amendment Act 1989, which amended the Securities Industry Act 1980. The regulations were issued under the authority of the Attorney-General, in accordance with a resolution of the Ministerial Council for Companies and Securities, and are expressed to be under section 4 of the Acts Interpretation Act 1901. The primary policy objective of these amendments is to streamline the licensing process for participants in the securities industry by removing certain exemptions and requirements that have become redundant due to the deregulatory changes. These regulations reflect a commitment to modernising the regulatory framework while ensuring that necessary oversight and compliance mechanisms remain in place.

Scope and Application

The Securities Industry Regulations (Amendment) Statutory Rules 1989 No. 294, issued under the authority of the Attorney-General, pertains to the Securities Industry Act 1980 and specifically modifies the Securities Industry Regulations. These regulations apply to entities and individuals involved in the securities industry, including securities dealers, investment advisers, and their representatives, within the Commonwealth of Australia, extending to all states and territories as part of the co-operative scheme for securities and futures industries regulation. The changes introduced by these regulations include the removal of certain exemptions for life offices and bank employees from licensing requirements, the repeal of regulations concerning the licensing and annual statements of dealers' and investment representatives, and the introduction of new requirements for maintaining registers of proper authority holders and fees for providing copies of such registers. Notably, these regulations do not introduce new substantive requirements but rather streamline and update existing regulatory provisions in response to legislative amendments. The regulations are effective as of 1 November 1989, aligning with the operational commencement of the Co-operative Scheme Legislation Amendment Act 1989.

Key Provisions

The Securities Industry Regulations (Amendment) Statutory Rules 1989 No. 294 introduces several modifications to the Securities Industry Regulations, as outlined in Regulations 2 to 9. These regulations are issued under the authority of the Attorney-General in accordance with section 150(1) of the Securities Industry Act 1980 (the Act) (Section 1). The amendments follow the advice of the Ministerial Council for Companies and Securities, which was established under an Agreement between the Commonwealth and the States, executed on 22 December 1978 (Section 2). Regulation 2 modifies the definition of 'superannuation scheme' and removes the definition of 'life office' from Regulation 2 of the Principal Regulations, reflecting the removal of certain exemptions under the Act (Regulation 2). Regulation 3 introduces a new Regulation 4A that prescribes the format and endorsement of annexures accompanying forms (Regulation 3). Regulations 4 and 6 repeal Regulations 15 and 17 of the Principal Regulations, which dealt with applications for and variations of dealers' and investment representatives' licenses, as these licenses are no longer required (Regulations 4 and 6). Regulation 5 amends Regulation 16 to reflect the repeal of Regulation 15. Regulation 7 repeals Regulations 24 and 25 of the Principal Regulations, which related to the lodgment of annual statements by licensed representatives, as licensing is no longer required. It also introduces two new regulations, Proposed Regulation 24 and Proposed Regulation 25, which detail the information to be included in a register of persons holding proper authorities and the fee for providing a copy of such a register, respectively (Regulation 7). Regulation 8 modifies Regulation 26 by removing certain exemptions for life offices and bank employees from licensing requirements (Regulation 8). Lastly, Regulation 9 updates Regulation 42 to reflect changes in the Act concerning the notification of the location of registers of relevant interests maintained by licensees and financial journalists (Regulation 9). The obligations imposed by these regulations primarily revolve around the removal of licensing requirements for representatives and the introduction of new requirements for maintaining registers and providing information to the Australian Securities and Investments Commission (ASIC). Representatives must now hold a proper authority from their principal instead of a license. Licensees are required to include specific information in their registers of proper authorities, such as the date of birth of the authority holder, and must notify ASIC of the location of registers of relevant interests (Regulations 2, 7, 8, and 9). Breaches of the regulations may result in civil and criminal penalties. For example, failure to maintain accurate and up-to-date registers of proper authorities, as required by Proposed Regulation 24, could lead to fines and other sanctions under the Securities Industry Act 1980. The maximum penalties for offences under the Act include fines of up to $210,000 for individuals and $1,050,000 for bodies corporate, as well as potential imprisonment terms (Section 131). Additionally, providing false or misleading information to ASIC, as required by Regulation 9, could result in further penalties, including fines and imprisonment under section 1311A of the Criminal Code Act 1995 (Section 1311A).

Legal classification tags

Area of Law
Commercial Law
Financial Services Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Regulatory Standards
Licensing & Registration
Repeal & Amendment
Compliance Obligations

Interactions

Authorises

All Versions

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.