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COMMONWEALTH INSCRIBED STOCK REGULATIONS (AMENDMENTS) 1995 NO. 291EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 291
Issued by authority of the Treasurer
Commonwealth Inscribed Stock Act 1911
Commonwealth Inscribed Stock Regulations (Amendments)
Section 58 of the Commonwealth Inscribed Stock Act 1911 (the Act) provides that the Governor-General may make regulations for the purposes of the Act and, in particular, 'all matters and forms required or necessary or convenient to be prescribed for carrying out or for giving effect to this Act or for the conduct of any business at or in connection with any Registry'.
The Reserve Bank of Australia acts as the Commonwealth's agent in the administration of the Commonwealth's domestic borrowing and through its Registries of Inscribed Stock maintains the record of bondholders and arranges interest and redemption payments.
The proposed amendments to the Regulations are essentially of a housekeeping nature, reflecting administrative changes and centralisation of functions within the Reserve Bank and bring the Bank's Registry operations into line with current market practice.
In particular, the amendments:
• remove references to transfer and exchange of stock between registries following the centralisation of functions into the one Registry (regulations 24, 24A, 24B and 49B and subregulation 22(3));
• remove certain witnessing requirements in line with current market practices (subregulations 19(2), 23(2), 23(3) and 41(4));
• reflect system efficiencies by relaxing the notice period within which stockholders are able to provide revised instructions for the payment of interest (subregulations 32(4) and 36(2)) and, for consistency, the period for advice to stockholders of the redemption of stock (regulation 40); and
• remove the requirement for the maintenance of a physical register in view of developments in data storage (subregulation 27(2) and regulation 57) and change the responsibility for record maintenance (regulation 69).
In addition, the Office of Legislative Drafting has taken the opportunity to correct certain Act citations (regulations 4 and 49 and subregulations 47(1), 66(1) and 66A(1)).