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Corporations (Securities Exchanges Levies) Bill 2001

1998-1999-2000-2001

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

Corporations (Securities Exchanges Levies) Bill 2001

 

No.      , 2001

 

(Treasury)

 

 

 

A Bill for an Act to impose levies in respect of securities exchange fidelity funds, and for related matters

   

   

   



Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Definitions.......................................................................................... 2

4............ Imposition of levies in respect of securities exchange fidelity funds... 2

5............ Amounts of levies............................................................................... 2

6............ Cessation of liability to levy if fund exceeds the relevant limit............ 4

7............ Regulations......................................................................................... 4

8............ Transitional matters............................................................................. 5

 



A Bill for an Act to impose levies in respect of securities exchange fidelity funds, and for related matters

The Parliament of Australia enacts:

1   Short title

                   This Act may be cited as the Corporations (Securities Exchanges Levies) Act 2001 .

2   Commencement

                   This Act commences at the same time as the Corporations Act 2001 .

3   Definitions

             (1)  In this Act:

old Corporations Law , in relation to a State or Territory, has the same meaning as it has in Part 10.1 of the Corporations Act 2001 .

             (2)  Other expressions used in this Act that are defined in a provision of the Corporations Act 2001 that applies for the purposes of Part 7.9 of that Act (whether it also applies for other purposes) have the same meanings in this Act as they are given by that provision.

4   Imposition of levies in respect of securities exchange fidelity funds

                   The following levies are imposed by this Act:

                     (a)  the levy by the name of securities exchange (application for membership) fidelity fund contribution that is payable under subsection 902(1) of the Corporations Act 2001 by a person who wishes to be admitted to membership of a securities exchange, or to a partnership in a member firm recognised by a securities exchange, as mentioned in that subsection;

                     (b)  the levy by the name of securities exchange (annual membership) fidelity fund contribution that is payable under subsection 902(2) of the Corporations Act 2001 by a member of a securities exchange referred to in that subsection;

                     (c)  any levy by the name of securities exchange additional fidelity fund contribution that is payable under subsection 904(1) of the Corporations Act 2001 by a member of a securities exchange referred to in that subsection.

5   Amounts of levies

             (1)  The amount of levy imposed by paragraph 4(a) is such amount, not being less than $500, as is determined by the securities exchange in relation to the person, or in relation to a class of persons that includes the person.

             (2)  The amount of levy imposed by paragraph 4(b) is such amount, not being less than $100, as is determined by the securities exchange in relation to the person, or in relation to a class of persons that includes the person.

             (3)  Subject to subsections (4) and (5), the amount of levy imposed by paragraph 4(c) is such amount as is determined by the securities exchange in relation to the person, or in relation to a class of persons that includes the person.

             (4)  Subsection (3) has effect subject to the following limitations:

                     (a)  if, apart from this section, the making of a determination (the new determination ) of an amount of levy for the purposes of subsection (3) would take the total of all amounts of levy determined in relation to a person under that subsection to more than $5,000, the new determination has effect in relation to the person only to the extent to which it would take that total to $5,000;

                     (b)  if, apart from this section, the making of a determination (the new determination ) of an amount of levy for the purposes of subsection (3) would take the total of all amounts of levy determined in relation to a person under that subsection in a period of 12 months (which may be a period some of which occurred before the commencement of this Act) to more than $1,000, the new determination has effect in relation to the person only to the extent to which it would take that total to $1,000.

             (5)  A reference in subsection (4) to an amount of levy determined in relation to a person under subsection (3) is taken to include a reference to:

                     (a)  in the case of paragraph (4)(a)—any amount that counted for the purpose of the $5,000 limit in subsection 904(3) of the old Corporations Law of a State or Territory as it applied in relation to the person and the securities exchange immediately before the commencement of this Act; and

                     (b)  in the case of paragraph (4)(b)—any amount that counted for the purpose of the $1,000 limit in subsection 904(3) of the old Corporations Law of a State or Territory as it applied in relation to the person and the securities exchange immediately before the commencement of this Act in respect of so much of the 12 month period referred to in paragraph (4)(b) as occurred before that commencement.

6   Cessation of liability to levy if fund exceeds the relevant limit

             (1)  In this section:

high point means $2,000,000, or such lesser amount as is prescribed for the purposes of this definition.

low point means $1,00 0,0 00, or such lesser amount as is prescribed for the purposes of this definition.

relevant person , in relation to a securities exchange, has the same meaning as in section 903 of the Corporations Act 2001 .

             (2)  If the amount in a fidelity fund of a securities exchange exceeds the high point, a relevant person is, subject to subsection (3), exempt from making further payments of the levy imposed by paragraph 4(b) in respect of that fund.

             (3)  If:

                     (a)  the amount in a fidelity fund of a securities exchange is, because of payments made out of the fund, less than the low point; and

                     (b)  the securities exchange determines that a person who, because of subsection (2), is exempt from making further payments of the levy imposed by paragraph 4(b) in respect of the fund should again be required to make annual payments of that levy;

the person is liable to make payments of that levy accordingly.

7   Regulations

                   The Governor-General may make regulations for the purposes of section 6.

8   Transitional matters

             (1)  Regulations prescribing an amount for the purposes of subsection 903(2) of the old Corporations Law that were in force immediately before the commencement of this Act continue to have effect, and may be amended or repealed, as if they were made under section 7 of this Act for the purposes of the definition of high point in subsection 6(1) of this Act.

             (2)  Regulations prescribing an amount for the purposes of subsection 903(8) of the old Corporations Law that were in force immediately before the commencement of this Act continue to have effect, and may be amended or repealed, as if they were made under section 7 of this Act for the purposes of the definition of low point in subsection 6(1) of this Act.

             (3)  If, immediately before the commencement of this Act, an amount was payable by a person to a securities exchange under subsection 902(2) of the old Corporations Law of a State or Territory in this jurisdiction, a liability to pay a levy of the same amount, in respect of the same matter, to the Commonwealth is imposed on the person by this subsection on the commencement of this Act. The levy is payable to the securities exchange as agent for the Commonwealth.

             (4)  If, immediately before the commencement of this Act, an amount was payable by a person to a securities exchange under subsection 904(1) of the old Corporations Law of a State or Territory in this jurisdiction, a liability to pay a levy of the same amount, in respect of the same matter, to the Commonwealth is imposed on the person by this subsection on the commencement of this Act. The levy is payable to the securities exchange as agent for the Commonwealth.

             (5)  A determination of an amount in force immediately before the commencement for the purposes of subsection 902(1), 902(2) or 904(1) of the old Corporations Law of a State or Territory in this jurisdiction continues to have effect (and may be dealt with) after the commencement of this Act as if it were:

                     (a)  in the case of a determination for the purposes of subsection 902(1)—a determination for the purposes of subsection 5(1) of this Act; or

                     (b)  in the case of a determination for the purposes of subsection 902(2)—a determination for the purposes of subsection 5(2) of this Act; or

                     (c)  in the case of a determination for the purposes of subsection 904(1)—a determination for the purposes of subsection 5(3) of this Act.