Commonwealth Numbered Regulations - Explanatory Statements

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CORPORATIONS (FEES) AMENDMENT REGULATIONS 2004 (NO. 2) 2004 NO. 400

EXPLANATORY STATEMENT

STATUTORY RULES 2004 NO. 400

Issued by the Parliamentary Secretary to the Treasurer

Corporations (Fees) Act 2001

Corporations (Fees) Amendment Regulations 2004 (No. 2)

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 the Act. Section 5 provides that (subject to section 6) the regulations may prescribe fees for chargeable matters, as defined in subsection 4(1) of the Act.

The purpose of the Regulations is to clarify the basis on which the Takeovers Panel charges fees in respect of applications made to the Takeovers Panel, and to increase the amount of the fees, prescribed in the Corporations (Fees) Regulations 2001 (Corporations (Fees) Regulations).

Currently, persons have to pay $540 when they make an application to the Takeovers Panel in accordance with item 23(b) of the Schedule 1 to the Corporations (Fees) Regulations. The policy objective of the fee is to deter frivolous applications and recover a portion of the costs associated with the expected private benefit that accrues to an applicant. The current fee was not set specifically in relation to applications made to the Takeovers Panel but in relation to any application under Chapters 6,6A,6B and 6C (the takeovers provisions) of the Corporations Act 2001 (the Corporations Act) for which a fee is not already provided (see item 23(b)). The current fee is not set high enough to achieve the policy objectives and therefore needs to be increased substantially. $2010 is the amount charged in relation to the lodgement of a bidder's statement under the Corporations Act and is the maximum amount charged in relation to the takeovers provisions. The fee for an application to the Takeovers Panel is being increased to $2010 by inserting a new item in Schedule 1 which specifically covers that matter.

The purpose of the Regulations is also to prescribe a fee payable where a company refers a financial report to the Financial Reporting Panel for consideration.

Providing for a fee to be charged where a company refers a financial report to the Financial Reporting Panel allows an offsetting of costs in relation to the operations of the Panel. There is no fee currently prescribed for referrals to the Financial Reporting Panel as it is a new body established under the Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 (the CLERP Act), which received Royal Assent on 30 June 2004. The CLERP Act provides that the Financial Reporting Panel provisions commence on 1 January 2005.

In addition, the purpose of the Regulations is to prescribe a fee payable by a clearing and settlement facility licensee (CS facility licensee) upon giving its annual report to the Australian Securities and Investments Commission (ASIC).

Currently no fee is prescribed for the provision of annual reports to ASIC for CS facility licensees. However, a fee of $330 applies to the provision of annual reports by financial market licensees. The new fee of $330 will make the obligations of CS facility licensees consistent with the obligations of financial market licensees when providing annual reports to ASIC. The new fee was intended to be prescribed at the same time as the current fee applicable to financial market licensees; however, it was erroneously omitted. The Regulations seek to correct this error by prescribing equal fees for CS facility licensees and financial market licensees.

Details of the Regulations are set out in the Attachment.

The Regulations commence on the date of gazettal.

ATTACHMENT

Details of the Corporations (Fees) Amendment Regulations 2004 (No. 2)

Regulation 1 provides that the name of the Regulations is the Corporations (Fees) Amendment Regulations 2004 (No. 2).

Regulation 2 provides that the Regulations commence on the date of gazettal.

Regulation 3 provides that Schedule 1 to the Regulations amends the Corporations (Fees) Regulations 2001 (the Principal Regulations).

Schedule 1 - Amendments

Item 1

This item inserts a fee of $330 to be charged on giving an annual report under subsection 821E(1) of the Corporations Act 2001 (Corporations Act).

Item 2

This item inserts a fee of $2010 to be charged when an application is made to the Takeovers Panel under the Corporations Act.

Item 3

This item inserts a fee of $2010 to be charged when a lodging entity refers a matter to the Financial Reporting Panel under section 323EG of the Corporations Act.


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