Commonwealth Numbered Regulations - Explanatory Statements

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AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION AMENDMENT REGULATIONS 1999 (NO. 1) 1999 NO. 190

Statutory Rules 1999 No. 190

Issued by the authority of the Minister for Financial Services and Regulation

Australian Securities and Investments Commission Act 1989

Australian Securities and Investments Commission Amendment Regulations 1999 (No. 1)

Section 251 of the Australian Securities and Investments Commission Act 1989 (the Act) empowers the Governor-General to make regulations not inconsistent with the Act, prescribing matters which are required or permitted by the Act to be prescribed by regulations, or are necessary or convenient to be prescribed by regulations for carrying out or giving effect to the Act.

In accordance with the Corporations Agreement between Commonwealth, State and Northern Territory Ministers having responsibilities in relation to corporate regulation, the Minister for Financial Services and Regulation consulted the relevant State and Northern Territory Ministers (the Ministerial Council for Corporations) about the Regulations. The Council agreed to the amendments.

Regulation 3 of the Australian Securities and Investments Commission Regulations 1990, lists the agencies and authorities to which Australian Securities and Investments Commission (ASIC) investigation reports may be given. Currently, investigation reports are distributed to Commonwealth agencies such as the Australian Competition and Consumer Commission (ACCC) and State law enforcement agencies.

The amendment to the ASIC Regulations concerns the addition of the fair trading agencies of each State and Territory to the list of prescribed agencies under Regulation 3. This will allow ASIC investigation reports to be distributed to these agencies, where appropriate.

The consumer protection laws of ASIC are complemented in certain areas by State and Territory laws. Therefore, it is desirable for State and Territory fair trading agencies to also be listed under Regulation 3. The precedent of the ACCC, which is currently empowered to refer cases for investigation and litigation to State and Territory fair trading agencies, indicates that this can be an efficient and effective form of action.

The Regulations commence on gazettal.