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CORPORATIONS (FEES) AMENDMENT REGULATIONS 2002 (NO. 1) 2002 NO. 42EXPLANATORY STATEMENT
Statutory Rules 2002 No. 42
Issued by the Parliamentary Secretary to the Treasurer
Corporations (Fees) Act 2001
Corporations (Fees) Amendment Regulations 2002 (No. 1)
Section 8 of the Corporations (Fees) Act 2001 (the Act) provides that the Governor-General may 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.
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 regulations relate to fees for particular services and for lodging particular documents, including:
• ASIC supervising the Australian Stock Exchange's compliance with its own rules (because it is listed on its own market) and supervising the Exchange's competitors in particular conflict situations (regulations 5 and 6);
• lodging an application for the Minister to exempt a financial market or clearing and settlement facility from regulation under Part 7.2 or 7.3 (item 15, column 2 of Schedule 1); and
• various fees in relation to financial services licensees (items 1, 1A, 2, 4A, 9AA, 27A-H, 31A, 44-49 to Schedule 1).
Details of the amendments are attached.
The regulations commence at 12.01 am on 11 March 2002, immediately after the Financial Services Reform Act 2001 and the Corporations (Fees) Amendment Regulation 2001 (No. 1) (Statutory Rules 2001 No. 320) commence.
Listing of market licensee on its own market - regulation 5
The regulations prescribe the fees payable by a self-listed market licensee to the Australian Securities and Investments Commission (ASIC) for the latter performing functions under subsections 798C(2) and 798C(4) of the amended Corporations Act 2001 (the Corporations Act). ASIC's performance of these functions are prescribed as "chargeable matters" in section 4(1) of the Act.
The amendments enable ASIC to charge $70 for each hour, and a lesser proportionate amount for part of an hour, for the performance of certain functions under subsections 798C(2) and 798C(4) of the amended Corporations Act. In addition, the amendments enable ASIC to charge the market licensee a fee of $5,000 every two months, for the performance of functions that fall within subsections 798C(2) and 798C(4) but are not included in the list of functions that are chargeable with reference to the time taken to perform that function.
Making decisions and taking action in conflict, or potential conflict, situation - regulation 6
Regulation 6 provides a fee of $70 for each hour, and a lesser proportionate amount for part of an hour, during which ASIC performs a function under Corporations Regulation 7.2.16 (under subsection 798E(1)),
Corporations Regulation 7.2.16 provides a mechanism whereby ASIC can make decisions about compliance with the Australian Stock Exchange's listing rules by listed competitors of the Australian Stock Exchange or its subsidiaries.
Amendments to Schedule 1
Fees relating to Australian financial services licences - items 1, 1A, 2, 4A, 9AA, 27A-H, 31A, 44-49 to Schedule 1
The amendments specify fees relevant to Parts 7.6 and 7.8 of the amended Corporations Act. The previous level of fees has generally been carried over into the regulations.
The application fees are lower when an application is lodged using ASIC's eLicensing service (that is, the application is lodged via the internet).
The regulations also deal with a number of fees for application for exemptions from the specific provisions of Chapter 7 of the amended Corporations Act dealing with financial services licences and conduct of financial services licensees.
The regulations correct minor errors (Items 39 and 43 of Schedule 1) and add definitions by reference to the Australian Securities and Investments Commission Act 2001 to the list in Regulation 1 B.
Application for exemption - financial markets and clearing and settlement facilities - amendment to Schedule 1, item 15, column 2
The Regulations also prescribe fees for applications to the Minister to exempt a particular financial market or type of financial market from the operation of Part 7.2 and for applications to the Minister to exempt a particular clearing and settlement facility or type of clearing and settlement facility from the operation of Part 7.3. These applications fall within the meaning of "chargeable matters" in section 4 of the Act.
The amendments prescribe a fee of $1200 for the respective exemptions as this is the same amount imposed as a fee for lodging an application for an Australian market licence and an Australian CS facility licence.