Bills Digest No. 156 2000-01
Corporations (Futures Organisations Levies) Bill 2001
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This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
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CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details
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.
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.
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.
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).
- http://www.aph.gov.au/library/pubs/bd/2000-01/01BD140.htm
- Dr M Hains, 'The Futures Industry', Australian Corporation Law,
Butterworths Looseleaf Service, p. 81 288.
- Explanatory Memorandum, p 3.
Mark Tapley
15 June 2001
Bills Digest Service
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ISSN 1328-8091
© Commonwealth of Australia 2000
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