Commonwealth Numbered Regulations - Explanatory Statements

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CORPORATIONS (FEES) AMENDMENT REGULATIONS 2001 (NO. 1) 2001 NO. 320

Statutory Rules 2001 No. 320

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

Corporations (Fees) Act 2001

Corporations (Fees) Amendment Regulations 2001 (No. 1)

Section 8 of the Corporations (Fees) Act 2001 (the Fees Act) empowers the Governor-General to make regulations for the purposes of sections 5 and 6 of that Act. Section 5 provides that, subject to section 6, the regulations may prescribe fees for chargeable matters and that fees prescribed by the regulations for chargeable matters are imposed, and are so imposed as taxes. Section 6 provides, among other things, that the regulations may prescribe a fee for a chargeable matter by specifying an amount as the fee or by specifying a method for calculating the amount of the fee.

The purpose of the regulations is to support the reforms to the regulation of the financial services industry which are included in the Financial Services Reform Act 2001 and associated legislation, and to make certain miscellaneous amendments.

The responsible Ministers of the States and the Northern Territory on the Ministerial Council for Corporations have been consulted about the regulations as required for the current Corporations Agreement which was reached by State, Northern Territory and Commonwealth Ministers who had responsibilities in relation to corporate regulation in June 1990. This Agreement formed the political compact on which the national companies and securities scheme, which operated from 1 January 1991 to 14 July 2001, was based. That scheme was superseded by a new legislative scheme which commenced on 15 July 2001. The new scheme is based on Commonwealth legislation enacted with the assistance of relevant power referred by the States. It is envisaged that a new Agreement, reflecting the changed constitutional basis of the relevant law, will be signed but meanwhile the Commonwealth, States and the Northern Territory consider themselves bound by the proposed new agreement. The new Agreement also requires that the Council be consulted in relation to amendments to the Fees Regulations, but does not require the Council's approval.

The Financial Services Reform Act 2001 amends the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001, and will provide:

•       a single licensing regime for financial sales, advice and dealings in relation to financial products;

•       consistent and comparable financial product disclosure; and

•       a single authorisation procedure for financial exchanges and clearing and settlement facilities.

The Financial Services Reform Act 2001 repeals Chapters 7 and 8 of the Corporations Act 2001 and substitutes a new Chapter 7.

The amendments to the Fees Regulations omit the fees which are payable in relation to various provisions of Chapters 7 and 8 as they currently stand and replace these items with the fees payable in relation to comparable activity under the Chapter 7 which the Financial Services Reform Act 2001 will insert into the Corporations Act 2001.

The fees set relate to such matters as:

•       lodging an application for ail relevant licence;

•       inspecting registers kept by ASIC for the purpose of the new provisions;

•       lodging a Product Disclosure Statement.

The amount of each fee is comparable to that which would have been charged for a similar service under the current provisions.

The regulations will commence at the same time as Item 1 of Schedule 1 of the Financial Services Reform Act 2001 commences.