CORPORATIONS (FEES) AMENDMENT REGULATION 2012 (NO. 1) (SLI NO 173 OF 2012) EXPLANATORY STATEMENT

Section 5 of the Corporations (Fees) Act 2001 (the Act) provides that the Governor-General may make regulations prescribing fees for chargeable matters as defined in the Act. The Corporations (Fees) Regulations 2001 (the Principal Regulations) prescribes the amount of fees for each chargeable matter.

The Corporations (Fees) Amendment Regulation 2012 (No. 1) amends the Principal Regulations to increase the application fee to obtain an Australian Financial Services Licence (AFSL) and annual lodgement fee for an AFSL holder from 1 August 2012. These fee increases are intended to offset the cost of providing additional funding to the Australian Securities and Investments Commission (ASIC) to enhance its regulation of the financial services sector in Australia.

- the increase to the AFSL application fee for a body corporate, partnership or non-corporate trustee, using the ASIC eLicensing service or any other form from $287 or $575 respectively to $1485 per application;

- the increase to the AFSL application fee for an individual using the ASIC eLicensing service or any other form from $159 or $351 respectively to $825 per application;

- the increase to the AFSL annual lodgement fee for a body corporate, partnership or non-corporate trustee from $351 to $549 per annum; and

- the increase to the AFSL annual lodgement fee for an individual from $144 to $225 per annum.

The decision to increase the application and lodgement fees related to AFSLs was made as part of the development of the 2012-13 Budget and as such was not subject to public consultation. ASIC were consulted in the development of this Regulation implementing the Government's decision.

A statement of the Regulation's compatibility with human rights is set out in Attachment B.

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Act does not specify any conditions that need to be satisfied before the power to make the Regulation may be exercised.

ATTACHMENT A

Details of the Corporations (Fees) Amendment Regulation 2012 (No. 1)

Section 1 - Name of Regulation

The regulation provides that the name of the Regulation is the Corporations (Fees) Amendment Regulation 2012 (No. 1).

Section 2 - Commencement

This regulation provides for the Regulation to commence on 1 August 2012.

Section 3 - Amendment of the Corporations (Fees) Regulations 2001

This section provides that Schedule 1 amends the Corporations (Fees) Regulations 2001 (the Principal Regulations).

Schedule 1 - Amendments

Item [1] - Schedule 1, table, item 1, columns 2 and 3

Item 1 amends the Principal Regulations to update the fee for a body corporate, partnership or non-corporate trustee who applies for an Australian Financial Services Licence (AFSL) to $1485.

Item 1 paragraph (b) amends the Principal Regulations to update the fee for an individual who applies for an AFSL to $825.

The AFSL application fee is not adjusted for changes in the Consumer Price Index (CPI) on 1 August 2012; indexing will commence on 1 July 2013.

Item [2] - Schedule 1, table, item 9, columns 2 and 3

Item 2 paragraph (a) amends the Principal Regulations to update the AFSL annual lodgement fee for a body corporate, partnership or non-corporate trustee to $549.

Item 2 paragraph (b) amends the Principal Regulations to update the AFSL annual lodgement fee for an individual to $225.

The AFSL annual lodgement fee is not adjusted for changes in the CPI on 1 August 2012; indexing will commence on 1 July 2013.

ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Corporations (Fees) Amendment Regulation 2012 (No. 1)

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

This Legislative Instrument increases the application and annual lodgement fees associated with an Australian Financial Services Licence.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Commonwealth Numbered Regulations - Explanatory Statements

EXPLANATORY STATEMENT

Issued by authority of the Minister for Financial Services and Superannuation

Statement of Compatibility with Human Rights

Overview of the Legislative Instrument

Human rights implications

Conclusion