Bills Digest No. 155 2000-01
Corporations (National Guarantee Fund Levies) Bill 2001
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
any official legal status. Other sources should be consulted to determine
the subsequent official status of the Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details
Corporations (National Guarantee Fund Levies) Bill
2001
Date Introduced: 24 May
2001
House: House of Representatives
Portfolio: Treasury
Commencement: At the same time as the Corporations
Act 2001. It is intended that Act will commence on July 1 2001.
To
provide for the imposition of levies for the National Guarantee Fund.
This Bill, in substance, re-enacts the corresponding existing provisions
of the Corporations Law national scheme as a single piece of Commonwealth
legislation.
The principal Background to the issues giving rise to
this Bill can be found in the Bills Digest for the Corporations (Fees)
Bill 2001 and the Corporations Bill 2001(1).
What is the National Guarantee Fund?
The National Guarantee Fund (NGF) is a compensation fund
that is available to meet claims arising from dealings with stockbrokers
including where: a stockbroker transfers securities without authority;
or where the stockbroker becomes insolvent and fails to meet its obligations
to a person who had previously entrusted property to it(2).
The Fund is administered by the Securities Exchange Guarantee Corporation
(SEGC). The NGF may be funded by levies on securities transactions, the
ASX and ASX members.
Clause 4 imposes levies in relation to transactions involving
securities by a person or partnership; participating securities exchanges(3);
and members of an exchange. The Explanatory Memorandum notes that these
levies are equivalent to those payable under sections 938, 940 and 941
of the Corporations Law(4).
The levy rates are determined by the SEGC (clause
5). Where a person has a liability to pay a levy under section 938,
940 or 941 of the Corporations Law at the time of the commencement of
the proposed Corporations Act 2001, then clause 6 imposes
a new liability to pay the levy. Determinations setting levy rates made
prior to the commencement of the proposed Corporations Act 2001 are
preserved by subclause 6(4).
There will be no double collection of levies. Liability
to pay under the provisions of the corporations law will be extinguished
by the relevant Commonwealth, State or Territory legislation(5).
- http://www.aph.gov.au/library/pubs/bd/2000-01/01BD140.htm
- More information on the NGF can be found the NGF information booklet
which is at the following link: http://www.segc.com.au
- The ASX is currently the only participating exchange.
- p. 3.
- See for example, Corporations (Repeals, Consequentials and Transitionals)
Bill 2001.
Mark Tapley
15 June 2001
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
© Commonwealth of Australia 2000
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