Telecommunications (Consumer Protection and Service Standards) (Communications Fund) Regulations 2005
Select Legislative Instrument 2005 No. 213 as amended
made under the
Telecommunications (Consumer Protection and Service Standards) Act 1999
This compilation was prepared on 23 September 2006
taking into account amendments up to SLI 2006 No. 245
Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra
Contents
1 Name of Regulations [see Note 1]
2 Commencement [see Note 1]
3 Definitions
4 Communications Fund — financial assets
Schedule 1 Assets
Notes
1 Name of Regulations [see Note 1]
These Regulations are the Telecommunications (Consumer Protection and Service Standards) (Communications Fund) Regulations 2005.
2 Commencement [see Note 1]
These Regulations commence on the commencement of Schedule 1 to the Telecommunications Legislation Amendment (Future Proofing and Other Measures) Act 2005.
3 Definitions
In these Regulations:
Act means the Telecommunications (Consumer Protection and Service Standards) Act 1999.
bank has the same meaning as in section 5 of the Financial Management and Accountability Act 1997.
responsible Ministers has the same meaning as in section 158ZF of the Act.
4 Communications Fund — financial assets
For paragraph (f) of the definition of financial asset in section 158ZF of the Act, the assets mentioned in Schedule 1 are specified.
Schedule 1 Assets
(regulation 4)
1. Securities of the Commonwealth, or of a State or Territory, to which paragraph (a) of the definition of financial asset in section 158ZF of the Act does not apply.
2. Securities guaranteed by the Commonwealth, a State or a Territory.
3. A deposit with a bank, including a deposit evidenced by a certificate of deposit.
4. A debt instrument issued or guaranteed by:
(a) the government of a foreign country; or
(b) a financial institution whose members consist of foreign countries, or of Australia and foreign countries;
being a debt instrument with a credit rating that is consistent with the sound management of public debt.
5. A bill of exchange accepted or endorsed only by a bank.
6. A professionally managed money market trust if the responsible Ministers are satisfied that:
(a) the only investments managed by the trust are mentioned in item 1, 2 or 3; and
(b) a charge over trust assets does not support any borrowings by the trust.
7. An Australian dollar denominated debt instrument with an investment grade credit rating.
Note ‘Investment grade credit rating’ is a well recognised term in the finance industry which refers to securities with a credit rating from an internationally recognised rating agency such as Standard and Poors, of at least BBB‑ or equivalent for long term investments, and at least A3 or equivalent for short term investments.
8. An electronic equivalent of a document which provides evidence of the holding of, or investment in, any of the following assets:
(a) a debenture, stock or bond issued by a government;
(b) a share in, or debenture of, a body;
(c) an interest in a managed investment scheme;
(d) a unit of a debenture, share or interest covered by paragraph (a), (b) or (c);
(e) a derivative;
(f) securities of the Commonwealth, or of a State or Territory, to which paragraph (a) of the definition of financial asset in section 158ZF of the Act does not apply;
(g) securities guaranteed by the Commonwealth, a State or a Territory;
(h) a professionally managed money market trust of the kind mentioned in item 6 of this Schedule.
9. An electronic equivalent of any of the following instruments:
(a) a certificate of deposit from a bank;
(b) a debt instrument mentioned in item 4 of this Schedule;
(c) a bill of exchange accepted or endorsed only by a bank;
(d) an Australian dollar denominated debt instrument mentioned in item 7 of this Schedule;
(e) a promissory note.
Notes to the Telecommunications (Consumer Protection and Service Standards) (Communications Fund) Regulations 2005
Note 1
The Telecommunications (Consumer Protection and Service Standards) (Communications Fund) Regulations 2005 (in force under the Telecommunications (Consumer Protection and Service Standards) Act 1999) as shown in this compilation comprise Select Legislative Instrument 2005 No. 213 amended as indicated in the Tables below.
Table of Instruments
Year and
Number | Date of FRLI registration | Date of
commencement | Application, saving or
transitional provisions |
2005 No. 213 | 23 Sept 2005 (see F2005L02749) | 23 Sept 2005 (see r. 2) | |
2006 No. 245 | 22 Sept 2006 (see F2006L03080) | 23 Sept 2006 | — |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
Schedule 1 | |
Schedule 1............ | am. 2006 No. 245 |
Overview
The Telecommunications (Consumer Protection and Service Standards) (Communications Fund) Regulations 2005 were enacted under the Telecommunications (Consumer Protection and Service Standards) Act 1999 by the Parliament of Australia. These Regulations were introduced to address the need for a clearly defined set of financial assets that could be held by the Communications Fund, which was established to support the implementation of the Act's objectives related to consumer protection and service standards in the telecommunications industry. The Regulations specify the types of financial assets that can be held by the Fund, aiming to ensure the sound management of the Fund's resources while supporting the overarching policy objectives of the parent Act. Commencing on the same day as the Telecommunications Legislation Amendment (Future Proofing and Other Measures) Act 2005, these Regulations provide a framework for the management and investment of the Fund's financial assets, ensuring that they align with the standards of prudent financial management.
Scope and Application
The Telecommunications (Consumer Protection and Service Standards) (Communications Fund) Regulations 2005, made under the Telecommunications (Consumer Protection and Service Standards) Act 1999, apply to the Communications Fund established under the Act. The Regulations specify the types of financial assets that can be held by the Fund, which includes securities, deposits, debt instruments, and other specified investments. These Regulations apply to the Commonwealth and are designed to ensure that the assets held by the Communications Fund are of a high standard, reflecting the sound management of public debt. The Regulations also provide for the substitution and amendment of certain provisions through subordinate instruments, ensuring that the Fund's investment practices remain current and compliant with evolving financial standards. The detailed list of acceptable assets, outlined in the Schedule to the Regulations, ensures that the Fund's investments are secure and of high credit quality, thereby supporting the overarching objectives of consumer protection and service standards in the telecommunications sector.
Key Provisions
The Telecommunications (Consumer Protection and Service Standards) (Communications Fund) Regulations 2005 (the "Regulations") are made under the Telecommunications (Consumer Protection and Service Standards) Act 1999. They detail the types of financial assets that constitute the Communications Fund, which is established under the Act to support consumer protection and service standards in the telecommunications sector. The Regulations came into force on 23 September 2005, as per the commencement provision in regulation 2.
These Regulations outline specific financial assets that are considered part of the Communications Fund, as defined in regulation 4. The assets specified in Schedule 1 include various types of securities, deposits, debt instruments, and electronic equivalents. For instance, regulation 4(1) includes securities of the Commonwealth or a state or territory, securities guaranteed by these entities, and deposits with a bank. Additionally, regulation 4(4) specifies that an electronic equivalent of a document providing evidence of holding or investment in certain assets, such as government debentures or shares in a body, can also be part of the Fund.
Entities governed by these Regulations, primarily the responsible Ministers as defined in section 158ZF of the Act, are required to manage the Communications Fund in accordance with the specified financial assets listed in Schedule 1. This entails ensuring that the Fund’s investments are consistent with the criteria set out in the Regulations, such as maintaining investment-grade credit ratings and avoiding certain types of securities as outlined in the definitions and Schedule. The responsible Ministers must also ensure that any professionally managed money market trusts included in the Fund meet specific conditions, such as limiting investments to those assets listed in items 1, 2, or 3 of Schedule 1 and ensuring that trust assets are not leveraged.
Failure to comply with the Regulations may result in legal consequences. Although the specific penalties for breach are not detailed within the Regulations themselves, breaches of the underlying Act could potentially lead to civil or criminal penalties, including fines and imprisonment. The exact penalties would depend on the nature and severity of the breach, as well as any additional legislative provisions that may apply. It is essential for the responsible Ministers to adhere strictly to the Regulations to avoid any legal repercussions and to ensure the effective administration of the Communications Fund.