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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.
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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.
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