EXPLANATORY STATEMENT
STATUTORY RULES OF 1987 NO. 129
ISSUED BY THE AUTHORITY OF THE ATTORNEY-GENERAL
SECURITIES INDUSTRY REGULATIONS (AMENDMENT)
Section 150 of the Securities Industry Act 1980 (“the Act”) provides in subsection (1) 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 identical in form and substance to draft regulations approved by the Council.
5. The purpose of the accompanying regulations is to make amendments to the Securities Industry Regulations (“the Regulations”) to reflect the fact that the name of The Sydney Stock Exchange Limited has been changed to Australian Stock Exchange (Sydney) Limited and to make consequential changes arising from the repeal of subsection 76(7) of the Act.
6. Details of the accompanying regulations are set out below.
Regulation 1: Commencement
7. The amendments to the Regulations come into operation on 1 July 1987.
Regulation 2: Exempted transaction
8. On 1 April 1987 a new stock exchange, the Australian Stock Exchange Limited, was incorporated as a company limited by guarantee under the Australian Stock Exchange and National Guarantee Fund Act 1987. That Act also made the existing capital city exchanges subsidiaries of that Exchange and changed their names to reflect their new status.
9. This regulation amends regulation 31 of the Regulations by substituting “Australian Stock Exchange (Sydney) Limited” for “The Sydney Stock Exchange Limited”.
Regulation 3: Exemption of short sale covered by exchange traded options
10. This regulation amends the definition of “exchange traded option” in regulation 34 of the Regulations by substituting “Australian Stock Exchange (Sydney) Limited” for “The Sydney Stock Exchange Limited”.
Regulation 4: Repeal
11. Regulation 36 of the Regulations provides that the prescribed form for the purposes of subsection 76(7) of the Act is Form 14.
12. As subsection 76(7) has been repealed, regulation 36 is now redundant and this regulation omits it from the Regulations.
Regulation 5: Schedule 1
13. This regulation omits Form 14 from Schedule 1 to the Regulations.