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.
Overview
The Securities Industry Regulations (Amendment) 1987 was enacted to address changes in the securities industry resulting from the name change of The Sydney Stock Exchange Limited to Australian Stock Exchange (Sydney) Limited and the repeal of subsection 76(7) of the Securities Industry Act 1980. This legislative amendment was issued under the authority of the Attorney-General and made by the Federal Executive Council in accordance with advice from the Ministerial Council for Companies and Securities, established under the Agreement between the Commonwealth and the States executed on 22 December 1978. The policy objective of these regulations was to ensure that the securities industry framework remains current and reflective of structural changes within the industry, facilitating smooth transitions and compliance with the updated legal nomenclature.
Scope and Application
The Securities Industry Regulations (Amendment) Statutory Rules of 1987, issued under the authority of the Attorney-General, amend the Securities Industry Regulations to reflect the name change of The Sydney Stock Exchange Limited to Australian Stock Exchange (Sydney) Limited. These regulations apply across the Commonwealth of Australia and are made in accordance with the Securities Industry Act 1980 and the Agreement between the Commonwealth and the States. The amendments also account for the repeal of subsection 76(7) of the Act, which led to the removal of a specific form previously prescribed for certain transactions. The changes made by these regulations are intended to ensure consistency and accuracy within the regulatory framework governing securities industries, while the scope of the application remains national, covering all entities and transactions within the securities industry across Australia.
Key Provisions
The Securities Industry Regulations (Amendment) Statutory Rules of 1987 No. 129, issued by the authority of the Attorney-General, are an amendment to the Securities Industry Regulations 1980. These regulations were made under Section 150 of the Securities Industry Act 1980, which allows the Governor-General to make regulations necessary or convenient for carrying out or giving effect to the Act (Section 150(1)). The regulations must be consistent with the resolutions of the Ministerial Council for Companies and Securities, which was established under an agreement between the Commonwealth and the States on 22 December 1978 to provide a co-operative scheme for a uniform system of law and administration in relation to company law and securities regulation (Section 150(5)).
These regulations primarily amend the Securities Industry Regulations to reflect the name change of The Sydney Stock Exchange Limited to Australian Stock Exchange (Sydney) Limited, which occurred on 1 April 1987 (Regulation 2). They also amend the definition of “exchange traded option” in the Securities Industry Regulations to reflect the name change (Regulation 3). Additionally, these regulations omit regulation 36 and Form 14 from the Securities Industry Regulations because subsection 76(7) of the Securities Industry Act 1980, which referred to Form 14, has been repealed (Regulation 4 and Regulation 5).
The regulations impose specific obligations on entities governed by the Securities Industry Act 1980. Entities must comply with the amended definitions and provisions in the Securities Industry Regulations, such as recognising the Australian Stock Exchange (Sydney) Limited as the relevant stock exchange and ensuring that their activities align with the updated regulatory framework. The regulations also require entities to update any relevant documentation or references to reflect the name change and the consequential amendments.
The Securities Industry Regulations (Amendment) Statutory Rules of 1987 do not explicitly outline specific offences, penalties, or consequences for breaches. However, any failure to comply with the amended regulations could potentially result in enforcement actions under the Securities Industry Act 1980 or other related legislation. This could include administrative penalties, fines, or other legal actions as deemed appropriate by the relevant authorities. The specific penalties for breaches would depend on the nature and severity of the non-compliance and would be determined in accordance with the provisions of the Securities Industry Act 1980 and any other applicable laws.