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CORPORATIONS (FINANCIAL SERVICES REFORM AMENDMENTS) BILL 2002

      Corporations (Financial Services Reform
                Amendments) Bill

                          Circulation Print

               EXPLANATORY MEMORANDUM


The purpose of this Bill is to amend certain Acts as a consequence of the
enactment of the Financial Services Reform Act 2001 of the Commonwealth.
That Act substitutes a new Chapter 7, Financial Services and Markets, for
Chapters 7 and 8 of the Corporations Act 2001 of the Commonwealth,
replacing the provisions dealing with securities and the futures industry. It is
necessary to amend references in Victorian Acts to terminology or concepts
that are no longer consistent with the new provisions regulating financial
services and markets.

                                Clause Notes
Clause 1    sets out the purpose of the proposed Act.

Clause 2    provides for the proposed Act to come into operation on the day
            on which it receives the Royal Assent.

Clause 3    amends the Acts specified in the headings to items in the
            Schedule.

Clause 4    extends section 22 of the Corporations (Ancillary Provisions)
            Act 2001 enabling regulations to be made under that Act
            consequently amending certain statutory rules without complying
            with Part 2 of the Subordinate Legislation Act 1994 where the
            Corporations Act 2001 of the Commonwealth or the Australian
            Securities and Investments Commission Act 2001 of the
            Commonwealth is amended. This avoids having to amend each
            statutory rule by a separate statutory rule. The clause also
            amends section 25 of the Corporations (Ancillary Provisions)
            Act 2001 consequentially on the amendment to section 22 made
            by this clause and on clause 5.




                                       1
541252                                          BILL LA CIRCULATION 28/2/2002

 


 

Clause 5 inserts a new section 22A in the Corporations (Ancillary Provisions) Act 2001 which provides a power to make interim regulations construing references in Acts consistently with the provisions of a Commonwealth Act, or a Bill for a Commonwealth Act, that affects those references. The purpose of the new section is to enable affected references to be adjusted in circumstances where it has not been possible to amend the references by Act in the time available. Clause 6 inserts a new section 24A in the Corporations (Ancillary Provisions) Act 2001. The new section validates things done on or after the commencement of the Financial Services Reform Act 2001 of the Commonwealth and before the commencement of the proposed Act. The Commonwealth Act comes into operation on 11 March 2002 and the validation provision covers the likelihood of this Bill not being enacted before that date. The validation extends only to things that would have been valid and lawful if this Bill had been in operation at the relevant time. Schedule The Schedule sets out the consequential amendments necessary to certain Acts that contain references to matters that are affected by the substitution of the new Chapter 7 for Chapters 7 and 8 of the Corporations Act 2001 of the Commonwealth or by the repeal of the Insurance Agents and Brokers Act 1984 of the Commonwealth. The Schedule amends the listed Acts-- to change references to participants in the securities industry to references to financial services licensees and make certain other corrections; to change references to insurance agents and brokers to references to financial services licensees authorised as insurance agents; to change references to quoted securities to references to securities listed for quotation; to change references to stock exchanges to references to financial markets-- and to make other minor amendments consequential on the enactment of the Financial Services Reform Act 2001 of the Commonwealth. There are also further minor amendments consequential on the enactment of the Corporations Act 2001 of the Commonwealth. 2

 


 

 


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