Corporations (Futures Organisations Levies) Bill 2001


Numerical Index | Alphabetical Index

Bills Digest No. 156  2000-01
Corporations (Futures Organisations 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

Passage History

Corporations (Futures Organisations 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.

Purpose

To impose levies for futures exchange fidelity funds. This Bill, in substance, re-enacts the corresponding existing provisions of the Corporations Law national scheme as a single piece of Commonwealth legislation.

Background

The principal Background to the issues giving rise to this Bill can be found in the Bills Digests for the Corporations (Fees) Bill 2001 and the Corporations Bill 2001(1).

Australia has two approved futures exchanges, the Sydney Futures Exchange and the Australian Derivatives Exchange Limited. Such 'futures organisations' are obliged by Part 8.6 of the existing corporations law and the proposed Corporations Act 2001 to establish and maintain a fidelity fund to compensate clients who suffer pecuniary loss because of a misappropriation of money or other property by a contributing member of the exchange(2). The legislation provides for initial membership, annual and additional levies to be paid to the futures organisation as a fidelity fund contribution.

Main Provisions

Clause 4 imposes initial membership, annual and additional levies. These levies are equivalent to those payable under sections 1234 and 1235 of the Corporations Law(3).

The relevant futures organisation is empowered to determine the levy amounts. The limits on levy amounts are the same as those that currently apply under the Corporations Law (clause 5).

Where a person has a liability to pay an fidelity fund contribution under sections 1234 or 1235 of the Corporations Law at the time of the commencement of the proposed Corporations Act 2001, then subclauses 6(1) and (2) impose 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(3).

Endnotes

  1. http://www.aph.gov.au/library/pubs/bd/2000-01/01BD140.htm
  2. Dr M Hains, 'The Futures Industry', Australian Corporation Law, Butterworths Looseleaf Service, p. 81 288.
  3. Explanatory Memorandum, p 3.

Contact Officer and Copyright Details

Mark Tapley
15 June 2001
Bills Digest Service
Information and Research Services

This paper has been prepared for general distribution to Senators and Members of the Australian Parliament. While great care is taken to ensure that the paper is accurate and balanced, the paper is written using information publicly available at the time of production. The views expressed are those of the author and should not be attributed to the Information and Research Services (IRS). Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion. Readers are reminded that the paper is not an official parliamentary or Australian government document.

IRS staff are available to discuss the paper's contents with Senators and Members
and their staff but not with members of the public.

ISSN 1328-8091
© Commonwealth of Australia 2000

Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, without the prior written consent of the Parliamentary Library, other than by Members of the Australian Parliament in the course of their official duties.

Published by the Department of the Parliamentary Library, 2000.

 

 

 
Back to top

Facebook LinkedIn Twitter Add | Email Print