Tasmanian Bills Clause Notes Tasmanian Bills Clause Notes[Index] [Search] [Download] [Bill] [Help]
CLAUSE NOTES
TRUSTEE COMPANIES AMENDMENT BILL 2010
Clause 1 sets out the name (also called the short title)
of the proposed Act.
Clause 2 provides for the commencement of the
proposed Act on a day to be appointed by proclamation.
Clause 3 provides that the Trustee Companies Act 1953
in referred to as the Principal Act
Clause 4 Amends section 3 of the Principal Act
(Interpretation).
The amendments proposed to this section are consequential on
the taking over of entity level regulation by the
Commonwealth. In particular, a trustee company will, in the
future, be defined as a licensed trustee company within the
meaning of Chapter 5D of the Corporations Act 2001 of the
Commonwealth (the Corporations Act ).
Clause 5 Repeals section 4 and 4A. Section 4 of the
Principal Act outlines the mechanisms a trustee company must
go through to be able to operate in Tasmania. These
requirements are quite onerous, and it is thought that they may
be the cause of a lack of national trustee companies seeking to
operate in Tasmania. The provision is no longer required
because trustee companies will now be licensed under the
Commonwealth Act. Clause 4A is repealed as it is inconsistent
with amendments made to the Commonwealth Corporations
Act.
Clause 6 Repeals subsection (3) of section 7 of the
Principal Act as it is inconsistent with amendments made to the
Commonwealth Corporations Act.
Clause 7 Changes terminology used in section 11 of the
Principal Act so that it is consistent with amendments made to
the Commonwealth Corporations Act.
Clause 8 Repeals section 12 of the Principal Act which is
no longer required.
Clause 9 Changes terminology used in section 13 of the
Principal Act so that it is consistent with amendments made to
the Commonwealth Corporations Act.
Clause 10 omits subsections (2), (3) and (4) of Section 15
of the Principal Act. These subsections deal with fees, fees will
now be covered by Chapter 5D of the Commonwealth
Corporations Act.
Clause 11 changes terminology used in section 17 of the
Principal Act so that it is consistent with amendments made to
the Commonwealth Corporations Act.
Clause 12 repeals section 17A of the Principal Act.
Section 17A of the Principal Act addresses borrowing by
trustee companies. This will now be dealt with under Chapter
5D of the Commonwealth Corporations Act.
Clause 13 repeals section 18 of the Principal Act and
substitutes a new section. Section 18 addresses the
commission chargeable by a company. The new section 18 will
be consistent with Chapter 5D of the Commonwealth
Corporations Act.
Clause 14 amends section 18A of the Principal Act
which deals with management charges in relation to charitable
trusts; they make provision for the fees, commission and other
charges that may be charged by a trustee company in relation
to the administration or management of an estate or perpetual
trust. This section is to be amended as a result of the
Commonwealth taking responsibility for the regulation of such
matters.
Clause 15 repeals section 18C of the Principal Act
(power of trustee companies to establish common funds) and
substitutes a new section on the matter to clarify how common
funds may be administered.
Clause 16 repeals section 18E of the Principal Act
investment by Trustee Company of its own funds. This matter
is addressed in Chapter 5D of the Commonwealth Corporations
Act.
Clause 17 repeals sections 18G (Trustee company to
give information to Attorney-General where directed) and 18H
(Declaration by trustee company) neither of which are required
now the Commonwealth has taken over regulation of trustee
companies.
Clause 18 repeals section 20 and 21 of the Principal Act.
These sections are removed as the Commonwealth has taken
over regulation of trustee companies.
Clause 19 repeals Division 1, Part 3 of the Principal Act
restrictions on classes of business that may be undertaken by
trustee companies. The Commonwealth has assumed
regulation of this matter.
Clause 20 repeals section 34A of the Principal Act
powers and duties of auditors of trustee companies. The
Commonwealth has assumed regulation of this matter.
Clause 21 changes terminology used in section 36 so
that it is consistent with Chapter 5 of the Commonwealth
Corporations Act.
Clause 22 repeals sections 38, 39 and 39AA of the
principal Act which are no longer required now that the
Commonwealth has taken over regulation of trustee
companies.
Clause 23 repeals sections 40 and 40AA of the Principal
Act as these matters are now covered by Commonwealth
legislation.
Clause 24 omits subsection (2) of section 40A. This
subsection gives the Governor regulation making power in
relation to the establishment and operation of common funds.
This power is no longer required as the subject matter is now
covered by the Commonwealth legislation.
Clause 25 repeals Schedules 2, 2A, 3 and 5 of the
Principal Act. These matters dealt with in these Schedules are
now covered by commonwealth legislation.
Clause 26 provides that in Part 3, the Administration and
Probate Act 1935 is referred to as the Principal Act.
Clause 27 amends section 25 of the Administration and
Probate Act 1935so that the section applies to trustee
companies
Clause 28 provides for the automatic repeal of this Act.
This is standard practice for amending legislation.