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Corporations Act 2001

Authoritative Version
  • - C2017C00210
  • In force - Superseded Version
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Act No. 50 of 2001 as amended, taking into account amendments up to Treasury Laws Amendment (2017 Measures No. 3) Act 2017
An Act to make provision in relation to corporations and financial products and services, and for other purposes
Administered by: Attorney-General's; Treasury
Registered 06 Jul 2017
Start Date 01 Jul 2017
End Date 18 Sep 2017
Table of contents.

Corporations Act 2001

No. 50, 2001

Compilation No. 79

Compilation date:                              1 July 2017

Includes amendments up to:            Act No. 75, 2017

Registered:                                         6 July 2017

This compilation is in 6 volumes

Volume 1:       sections 1–260E

Volume 2:       sections 283AA–601DJ

Volume 3:       sections 601EA–742

Volume 4:       sections 760A–993D

Volume 5:       sections 1010A–1369A

Volume 6:       sections 1370–1637

                        Schedules

                        Endnotes

Each volume has its own contents

 

 

This compilation includes commenced amendments made by Act No. 45, 2017

About this compilation

This compilation

This is a compilation of the Corporations Act 2001 that shows the text of the law as amended and in force on 1 July 2017 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

  

  

  


Contents

Chapter 10—Transitional provisions                                                       1

Part 10.1—Transition from the old corporations legislation                       1

Division 1—Preliminary                                                                                              1

1370...................... Object of Part...................................................................... 1

1371...................... Definitions.......................................................................... 2

1372...................... Relationship of Part with State validation Acts................... 6

1373...................... References to things taken or deemed to be the case etc...... 8

1374...................... Existence of several versions of old corporations legislation does not result in this Part operating to take same thing to be done several times under new corporations legislation etc.     9

1375...................... Penalty units in respect of pre‑commencement conduct remain at $100   10

1376...................... Ceasing to be a referring State does not affect previous operation of this Part         10

Division 2—Carrying over registration of companies                             11

1377...................... Division has effect subject to Division 7 regulations........ 11

1378...................... Existing registered companies continue to be registered... 11

Division 3—Carrying over the old Corporations Regulations            13

1379...................... Division has effect subject to Division 7 regulations........ 13

1380...................... Old Corporations Regulations continue to have effect...... 13

Division 4—Court proceedings and orders                                                    14

1381...................... Division has effect subject to Division 7 regulations........ 14

1382...................... Definitions........................................................................ 14

1383...................... Treatment of court proceedings under or related to the old corporations legislation—proceedings other than federal corporations proceedings...................................... 16

1384...................... Treatment of court proceedings under or related to the old corporations legislation—federal corporations proceedings....................................................................... 19

1384A................... Appeals etc. in relation to some former federal corporations proceedings                20

1384B.................... Effect of decisions and orders made in federal corporations proceedings before commencement            21

1385...................... References to proceedings and orders in the new corporations legislation               21

Division 5—Other specific transitional provisions                                     23

1386...................... Division has effect subject to Division 7 regulations........ 23

1387...................... Certain applications lapse on the commencement.............. 23

1388...................... Carrying over the Partnerships and Associations Application Order       23

1389...................... Evidentiary certificates...................................................... 23

1390...................... Preservation of nomination of body corporate as SEGC.. 24

1391...................... Preservation of identification of satisfactory records........ 24

1392...................... Retention of information obtained under old corporations legislation of non‑referring State   25

1393...................... Transitional provisions relating to section 1351 fees........ 25

1394...................... Transitional provisions relating to securities exchange fidelity fund levies              26

1395...................... Transitional provisions relating to National Guarantee Fund levies         27

1396...................... Transitional provisions relating to futures organisation fidelity fund levies             28

Division 6—General transitional provisions relating to other things done etc. under the old corporations legislation                                                                                                30

1397...................... Limitations on scope of this Division............................... 30

1398...................... Provisions of this Division may have an overlapping effect 31

1399...................... Things done by etc. carried over provisions continue to have effect        31

1400...................... Creation of equivalent rights and liabilities to those that existed before the commencement under carried over provisions of the old corporations legislation................... 34

1401...................... Creation of equivalent rights and liabilities to those that existed before the commencement under repealed provisions of the old corporations legislation................... 36

1402...................... Old corporations legislation time limits etc....................... 38

1403...................... Preservation of significance etc. of events or circumstances 39

1404...................... References in the new corporations legislation generally include references to events, circumstances or things that happened or arose before the commencement............ 40

1405...................... References in the new corporations legislation to that legislation or the new ASIC legislation generally include references to corresponding provisions of the old corporations legislation or old ASIC legislation        41

1406...................... Carrying over references to corresponding previous laws 42

1407...................... References to old corporations legislation in instruments. 42

1408...................... Old transitional provisions continue to have their effect... 43

Division 7—Regulations dealing with transitional matters                    47

1409...................... Regulations may deal with transitional matters................. 47

Part 10.2—Transitional provisions relating to the Financial Services Reform Act 2001               49

Division 1—Transitional provisions relating to the phasing‑in of the new financial services regime   49

Subdivision A—Preliminary                                                                                 49

1410...................... Definitions........................................................................ 49

Subdivision B—Treatment of existing markets                                               51

1411...................... When is a market being operated immediately before the FSR commencement?      51

1412...................... Treatment of proposed markets that have not started to operate by the FSR commencement   51

1413...................... Obligation of Minister to grant licences covering main existing markets 53

1414...................... Section 1413 markets—effect of licences and conditions. 56

1415...................... Section 1413 markets—preservation of old Corporations Act provisions during transition period         58

1416...................... Section 1413 markets—powers for regulations to change how the old and new Corporations Act apply during the transition period.......................................................... 59

1417...................... Section 1413 markets—additional provisions relating to previously unregulated services       60

1418...................... Treatment of exempt stock markets and exempt futures markets (other than markets with no identifiable single operator)........................................................................... 61

1419...................... Treatment of exempt stock markets and exempt futures markets that do not have a single identifiable operator.......................................................................................... 63

1420...................... Treatment of stock markets of approved securities organisations             65

1421...................... Treatment of special stock markets for unquoted interests in a registered scheme    66

1422...................... Treatment of other markets that were not unauthorised..... 67

Subdivision C—Treatment of existing clearing and settlement facilities  68

1423...................... When is a clearing and settlement facility being operated immediately before the FSR commencement? 68

1424...................... Treatment of proposed clearing and settlement facilities that have not started to operate by the FSR commencement................................................................. 69

1424A................... Treatment of unregulated clearing and settlement facilities operated by holders of old Corporations Act approvals.......................................................................... 71

1425...................... Obligation of Minister to grant licences covering main existing facilities 72

1426...................... Section 1425 facilities—effect of licences and conditions. 74

1427...................... Section 1425 facilities—powers for regulations to change how the old and new Corporations Act apply during the transition period.......................................................... 76

1428...................... Section 1425 facilities—additional provisions relating to previously unregulated services      76

1429...................... Treatment of other clearing and settlement facilities.......... 77

Subdivision D—Treatment of people who carry on financial services businesses and their representatives         78

1430...................... Meaning of regulated principal, regulated activities and relevant old legislation    78

1431...................... Parts 7.6, 7.7 and 7.8 of the amended Corporations Act generally do not apply to a regulated principal during the transition period.......................................................... 82

1432...................... Continued application of relevant old legislation............... 84

1433...................... Streamlined licensing procedure for certain regulated principals              85

1434...................... Special licences for insurance multi‑agents during first 2 years after FSR commencement      86

1435...................... Licensing decisions made within the first 2 years of the FSR commencement—regard may be had to conduct and experience of applicant or related body corporate that currently provides same or similar services   88

1436...................... Treatment of representatives—general.............................. 89

1436A................... Treatment of representatives—insurance agents............... 90

1437...................... Exemptions and modifications by ASIC........................... 93

Subdivision E—Product disclosure requirements                                           94

1438...................... New product disclosure provisions do not apply to existing products during transition period               94

1439...................... Offences against new product disclosure provisions—additional element for prosecution to prove if conduct occurs after opting‑in and before the end of the first 2 years 97

1440...................... Continued application of certain provisions of old disclosure regimes during transition period               98

1441...................... Certain persons who are not yet covered by Parts 7.6, 7.7 and 7.8 of the amended Corporations Act are required to comply with Part 7.9 obligations as if they were regulated persons       99

1442...................... Exemptions and modifications by ASIC........................... 99

Subdivision F—Certain other product‑related requirements                     101

1442A................... Deferred application of hawking prohibition.................. 101

1442B.................... Deferred application of confirmation of transaction and cooling‑off provisions etc.                101

Division 2—Other transitional provisions                                                     104

1443...................... Definitions...................................................................... 104

1444...................... Regulations may deal with transitional, saving or application matters      105

1445...................... ASIC determinations may deal with transitional, saving or application matters       107

Part 10.3—Transitional provisions relating to the Corporations Legislation Amendment Act 2003     111

1447...................... Application of sections 601AB and 601PB.................... 111

1448...................... Application of amendments made by Schedule 4 to the Corporations Legislation Amendment Act 2003........................................................................................ 111

Part 10.4—Transitional provisions relating to the Financial Services Reform Amendment Act 2003  112

1449...................... Definition........................................................................ 112

1450...................... Application of Part 10.2 to Chapter 7 as amended by Schedule 2 to the amending Act           112

1451...................... Provisions relating to the scope of the amendments of Chapter 7 made by Schedule 2            113

1452...................... Amendments of section 1274......................................... 115

Part 10.5—Transitional provisions relating to the Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004                                116

1453...................... Definitions...................................................................... 116

1454...................... Audit reforms in Schedule 1 to the amending Act (auditing standards and audit working papers retention rules)............................................................................... 116

1455...................... Audit reforms in Schedule 1 to the amending Act (adoption of auditing standards made by accounting profession before commencement)................................. 117

1456...................... Audit reforms in Schedule 1 to the amending Act (new competency standard provisions)      118

1457...................... Audit reforms in Schedule 1 to the amending Act (new annual statement requirements for auditors)      118

1458...................... Audit reforms in Schedule 1 to the amending Act (imposition of conditions on existing registration as company auditor)............................................................ 119

1459...................... Audit reforms in Schedule 1 to the amending Act (application of items 62 and 63) 119

1460...................... Audit reforms in Schedule 1 to the amending Act (non‑audit services disclosure)  119

1461...................... Audit reforms in Schedule 1 to the amending Act (auditor appointment) 119

1462...................... Audit reforms in Schedule 1 to the amending Act (auditor independence)               120

1463...................... Audit reforms in Schedule 1 to the amending Act (auditor rotation)        122

1464...................... Audit reforms in Schedule 1 to the amending Act (listed company AGMs)            122

1465...................... Schedule 2 to the amending Act (financial reporting)..... 122

1466A................... Schedule 2A to the amending Act (true and fair view)... 122

1466...................... Schedule 3 to the amending Act (proportionate liability) 123

1467...................... Schedule 4 to the amending Act (enforcement)............... 123

1468...................... Schedule 5 to the amending Act (remuneration of directors and executives)            123

1469...................... Schedule 6 to the amending Act (continuous disclosure) 124

1470...................... Schedule 7 to the amending Act (disclosure rules)......... 124

1471...................... Schedule 8 to the amending Act (shareholder participation and information)           125

Part 10.8—Transitional provisions relating to the Corporations Amendment (Takeovers) Act 2007   126

1478...................... Application of amendments of the takeovers provisions. 126

Part 10.9—Transitional provisions relating to the Corporations Amendment (Insolvency) Act 2007  127

1479...................... Definition........................................................................ 127

1480...................... Schedule 1 to the amending Act (improving outcomes for creditors)       127

1481...................... Schedule 2 to the amending Act (deterring corporate misconduct)           130

1482...................... Schedule 3 to the amending Act (improving regulation of insolvency practitioners)                131

1483...................... Schedule 4 to the amending Act (fine‑tuning voluntary administration)   132

Part 10.10  Transitional provisions relating to the Corporations Amendment (Short Selling) Act 2008                                                                                                   135

1484...................... Declarations under paragraph 1020F(1)(c) relating to short selling         135

Part 10.11—Transitional provisions relating to the Corporations Amendment (No. 1) Act 2009            137

1485...................... Application of new subsection 206B(6)......................... 137

1486...................... Application of new section 206EAA.............................. 137

Part 10.12—Transitional provisions relating to the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009                                                        138

Division 1—Transitional provisions relating to Schedule 1 to the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009                   138

1487...................... Definitions...................................................................... 138

1488...................... Application of amendments—general............................. 138

1489...................... Applications of amendments—application for and grant of licences etc. authorising margin lending financial services........................................................................... 139

1490...................... Application of amendments—between 6 and 12 months after commencement        140

1491...................... Acquisition of property................................................... 141

1492...................... Regulations..................................................................... 141

Division 2—Transitional provisions relating to Schedule 2 to the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009                   142

1493...................... Definitions...................................................................... 142

1494...................... Transitional provisions relating to limit on control of trustee companies  142

1495...................... Transitional provisions relating to the amendments of Chapter 7             143

1496...................... General power for regulations to deal with transitional matters                144

Division 3—Transitional provisions relating to Schedule 3 to the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009                   145

1497...................... Definitions...................................................................... 145

1498...................... Application of amendments............................................ 145

Part 10.13—Transitional provisions relating to the Personal Property Securities (Corporations and Other Amendments) Act 2009                                                                146

1499...................... Definitions...................................................................... 146

1500...................... Charges, liens and pledges—continuation of restriction of references     146

1501...................... Charges, liens, pledges and third party property—application 147

1501A................... References to the whole or substantially the whole of a company’s property          147

1501B.................... Constructive notice of registrable charges....................... 147

1502...................... Repeal of Chapter 2K (charges)—general....................... 148

1503...................... Repeal of Chapter 2K (charges)—cessation of requirements in relation to documents or notices            148

1504...................... Repeal of Chapter 2K (charges)—application of section 266 149

1505...................... Repeal of Chapter 2K (charges)—cessation of company registration requirements 149

1506...................... Repeal of Chapter 2K (charges)—priority between registrable charges   150

1507...................... New section 440B (restrictions on third party property rights)                150

1508...................... New subsection 442CB(1) (administrator’s duty of care) 150

1509...................... New section 588FP (security interests in favour of an officer of a company etc. void)           150

1510...................... Winding up applied for before the commencement time. 151

Part 10.14—Transitional provisions relating to the Corporations Amendment (Corporate Reporting Reform) Act 2010                                                                                           152

1510A................... Definition........................................................................ 152

1510B.................... Application of Part 1 of Schedule 1 to the amending Act 152

Part 10.15—Transitional provisions relating to the Corporations Amendment (Financial Market Supervision) Act 2010                                                                                  154

1511...................... Definition........................................................................ 154

1512...................... Application of amendments............................................ 154

1513...................... Regulations may deal with transitional matters............... 154

Part 10.16—Transitional provisions relating to the Corporations Amendment (No. 1) Act 2010            155

1516...................... Application of amendments............................................ 155

Part 10.17—Transitional provisions relating to the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Act 2011                156

1517...................... Application of Subdivision B of Division 1 of Part 2D.3 156

1518...................... Application of sections 206J, 206K, 206L and 206M.... 156

1519...................... Application of subsection 249L(2)................................. 156

1520...................... Application of section 250BB......................................... 156

1521...................... Application of section 250BC......................................... 157

1522...................... Application of section 250BD........................................ 157

1523...................... Application of subsections 250R(4) to (10).................... 157

1524...................... Application of Division 9 of Part 2G.2........................... 157

1525...................... Application of amendments of section 300A.................. 157

Part 10.18—Transitional and application provisions relating to the Future of Financial Advice Measures                                                                                                                                    159

Division 1—Provisions relating to the Corporations Amendment (Further Future of Financial Advice Measures) Act 2012                                                                        159

1526...................... Definitions...................................................................... 159

1527...................... Application of best interests obligations......................... 160

1528...................... Application of ban on conflicted remuneration............... 160

1529...................... Application of ban on other remuneration—volume‑based shelf‑space fees            161

1530...................... Regulations do not apply where an acquisition of property otherwise than on just terms would result    162

1531...................... Application of ban on other remuneration—asset‑based fees on borrowed amounts               163

Division 2—Provisions relating to the Corporations Amendment (Financial Advice Measures) Act 2016                                                                                                                    164

1531A................... Definitions...................................................................... 164

1531B.................... Best interests obligation.................................................. 164

1531C.................... Renewal notices (opt‑in requirement)............................. 164

1531D................... Disclosure statements..................................................... 165

1531E.................... Conflicted remuneration.................................................. 165

Part 10.19—Transitional provisions relating to the Corporations Amendment (Phoenixing and Other Measures) Act 2012                                                                                       166

1532...................... Definition........................................................................ 166

1533...................... Part 1 of Schedule 1 to the amending Act (winding up by ASIC)           166

1534...................... Part 2 of Schedule 1 to the amending Act (publication requirements)      166

1535...................... Part 3 of Schedule 1 to the amending Act (miscellaneous amendments)  168

Part 10.20—Transitional provisions relating to the Corporations Legislation Amendment (Audit Enhancement) Act 2012                                                                              169

1536...................... Definitions...................................................................... 169

1537...................... Application of amendments relating to annual transparency reports         169

Part 10.21—Transitional provision relating to the Corporations Legislation Amendment (Financial Reporting Panel) Act 2012                                                                        170

1538...................... Courts etc. may have regard to Financial Reporting Panel report             170

Part 10.21A—Transitional provisions relating to the Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Act 2013          171

1538A................... Application of amendments relating to contributions to a fund or scheme               171

1538B.................... Application of amendments relating to Statements of Advice  171

Part 10.22—Transitional provisions relating to the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012                     172

1539...................... Application of section 1017BA (Obligation to make product dashboard publicly available)   172

1540...................... Application of subsection 1017BB(1) (Obligation to make information relating to investment of assets of superannuation entities publicly available)...................... 172

1541...................... Application of section 1017BC (Obligation to provide information relating to investment of assets of superannuation entities).................................................. 172

Part 10.23—Transitional provisions relating to the Clean Energy Legislation (Carbon Tax Repeal) Act 2014                                                                                                                         174

1542...................... Definition........................................................................ 174

1543...................... Transitional—carbon units issued before the designated carbon unit day                174

1544...................... Transitional—variation of conditions on Australian financial services licences       174

1545...................... Transitional—immediate cancellation of Australian financial services licences        175

1546...................... Transitional—statements of reasons for cancellation of Australian financial services licences 175

Part 10.23A—Transitional provisions relating to the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017                                                             176

Division 1—Definitions                                                                                            176

1546A................... Definitions...................................................................... 176

Division 2—Application and transitional provisions                               178

1546B.................... Existing providers to meet certain education and training standards         178

1546C.................... Application of limitation on authorisation to provide personal advice and offence   179

1546D................... Application of requirements relating to provisional relevant providers    180

1546E.................... Application of continuing professional development standard for relevant providers              180

1546F.................... Application of Code of Ethics to relevant providers....... 182

1546G................... Application of obligations in relation to compliance schemes  182

1546H................... Application of obligation for standards body to publish annual report     183

1546J..................... Application of obligation to notify ASIC about a person who becomes a relevant provider    184

1546K.................... Application of requirements relating to information about relevant provider’s principal place of business........................................................................................ 184

1546L.................... Application of requirements relating to information about membership of professional associations where relevant provider is licensee............................................ 184

1546M................... Application of requirements relating to information about membership of professional associations where relevant provider is not licensee...................................... 185

1546N................... Application of requirements relating to information about provisional relevant provider’s work and training........................................................................................ 185

1546P.................... Application of ongoing obligation to notify ASIC when there is a change in a matter for a relevant provider........................................................................................ 186

1546Q................... Application of obligation to notify ASIC about a person who starts to have control of a body corporate licensee........................................................................... 186

1546R.................... Application of obligation to notify ASIC about a person who ceases to have control of a body corporate licensee........................................................................... 187

1546S.................... Application of obligation for relevant providers to provide information to financial services licensees   187

1546T.................... Application of requirements relating to Register of Relevant Providers   188

1546U................... Relevant provider numbers given before commencement 188

1546V................... Continuation of Register of Relevant Providers.............. 188

Division 3—Transitional notices                                                                         189

1546W................... Obligation to notify ASIC of certain information........... 189

1546X................... Obligation to notify ASIC of CDP year......................... 189

1546Y................... Obligation to notify ASIC when exams passed.............. 190

1546Z.................... Obligation to notify ASIC of certain information after banning order      190

1546ZA................. Offence for failing to lodge transitional notices.............. 191

Division 4—Review                                                                                                    192

1546ZB................. Review............................................................................ 192

Part 10.24—Transitional provisions relating to the Corporations Legislation Amendment (Deregulatory and Other Measures) Act 2014                                                               193

1547...................... Definitions...................................................................... 193

1548...................... Application of amendments relating to calling of general meetings          193

1549...................... Application of amendments relating to directors’ reports for listed companies        193

Part 10.25—Transitional provisions relating to the Insolvency Practice Schedule (Corporations)         194

Division 1—Introduction                                                                                        194

1550...................... Simplified outline of this Part......................................... 194

1551...................... Definitions...................................................................... 195

Division 2—Application of Part 2 of the Insolvency Practice Schedule (Corporations) and related consequential amendments                                                          197

Subdivision A—Registering liquidators                                                           197

1552...................... Applications for registration under the old Act............... 197

1553...................... Persons registered under the old Act continue to be registered under the Insolvency Practice Schedule (Corporations)................................................................ 198

1554...................... Old Act registrant’s details............................................. 199

1555...................... Period of old Act registrant’s registration under the Insolvency Practice Schedule (Corporations)         199

1556...................... Conditions for old Act registrants—conditions under the Insolvency Practice Schedule (Corporations) 200

1557...................... Current conditions for old Act registrants—undertakings under the old Act           200

1558...................... Current conditions for old Act registrants—undertakings under the ASIC Act       201

1559...................... Old Act registrant registered as liquidator of a specified body corporate 201

1560...................... Old Act registrant chooses not to renew......................... 202

Subdivision B—Annual returns and statements                                             203

1561...................... Application of obligation to lodge annual liquidator returns 203

Subdivision C—Notice requirements                                                                204

1562...................... Notice of significant events............................................. 204

Subdivision D—Cancellation by ASIC under the old Act                             205

1563...................... Request for cancellation made before the commencement day 205

1564...................... Decision to cancel registration made before the commencement day        205

Subdivision E—Disciplinary proceedings before the Board                      206

1565...................... Matters not dealt with by the Board before the commencement day         206

1566...................... Matters dealt with by the Board before the commencement day               207

1567...................... Matters which the Board refuses to deal with before the commencement day          208

1568...................... Board considering terminating suspension before the commencement day              209

1569...................... Sharing information between the Board and committees 209

Subdivision F—Suspension, cancellation and disciplinary action under the Insolvency Practice Schedule (Corporations)                                                                           210

1570...................... Direction to comply with requirement to lodge documents etc.                210

1571...................... Suspension by ASIC under the Insolvency Practice Schedule (Corporations)        210

1572...................... Cancellation by ASIC under the Insolvency Practice Schedule (Corporations)       210

1573...................... Show‑cause notice under the Insolvency Practice Schedule (Corporations)            211

1574...................... Lifting or shortening suspension under the Insolvency Practice Schedule (Corporations)       211

1575...................... Action initiated by industry bodies................................. 211

Subdivision G—Powers of the Court and other bodies                                 211

1576...................... Application of court powers under section 45‑1 of the Insolvency Practice Schedule (Corporations)     211

1577...................... Powers to deal with registration under the old Act on or after the commencement day            212

Division 3—Application of Part 3 of the Insolvency Practice Schedule (Corporations) and related consequential amendments                                                          213

Subdivision A—Introduction                                                                               213

1578...................... Simplified outline of this Division.................................. 213

Subdivision B—General rules for Part 3                                                         214

1579...................... Application of Part 3 of the Insolvency Practice Schedule (Corporations)—general rules       214

Subdivision C—Remuneration and other benefits received by external administrators             214

1580...................... Application of Division 60 of the Insolvency Practice Schedule (Corporations)—general rule               214

1581...................... Old Act continues to apply in relation to remuneration for administrators already appointed   214

1582...................... Duties of administrators relating to remuneration and other benefits        215

1583...................... Old Act continues to apply in relation to any right of indemnity              215

1584...................... Application of new provisions about vacancies of court‑appointed liquidator         216

1585...................... Application of new provisions about exercise of powers while company under external administration 216

Subdivision D—Funds handling                                                                         216

1586...................... Application of Division 65 of the Insolvency Practice Schedule (Corporations)—general rule               216

1587...................... Administration account................................................... 217

1588...................... Paying money into administration account...................... 217

1589...................... Paying money out of administration account.................. 217

1590...................... Handling securities......................................................... 218

Subdivision E—Information                                                                               218

1591...................... Application of Division 70 of the Insolvency Practice Schedule (Corporations)—general rule               218

1592...................... Accounts and administration returns............................... 218

1593...................... Administration books..................................................... 219

1594...................... Audit of administration books........................................ 220

1595...................... Transfer of administration books.................................... 220

1596...................... Retention and destruction of administration books......... 220

1597...................... Giving information to creditors etc................................. 221

1598...................... Commonwealth may request information....................... 222

1599...................... Reporting to ASIC.......................................................... 222

1600...................... Old Act continues to apply in relation to notices to remedy default          222

Subdivision F—Meetings                                                                                      222

1601...................... Application of Division 75 of the Insolvency Practice Schedule (Corporations)—general rule               222

1602...................... External administrator must convene meetings in certain circumstances  223

1603...................... Old Act continues to apply in relation to reporting for first year of administration  223

1604...................... Old Act continues to apply to the deregistration of companies 224

1605...................... Old Act continues to apply for certain meetings convened etc. before commencement day     224

1606...................... Outcome of voting at creditors’ meeting determined by related entity or on casting vote—Court powers........................................................................................ 225

Subdivision G—Committees of inspection                                                       225

1607...................... Application of Division 80 of the Insolvency Practice Schedule (Corporations)—general rules             225

1608...................... Appointing committees of inspection.............................. 226

1609...................... Old Act continues to apply to certain reports by administrator 227

1610...................... Membership of continued committees............................ 227

1611...................... Validity of appointment under section 548 of the old Act not affected by lack of separate meeting of contributories.................................................................. 228

1612...................... Continued application of directions by creditors or committees under the old Act   229

1613...................... Committee of inspection may request information.......... 229

1614...................... Duties of members of committee of inspection and creditors relating to profits and advantages etc.        229

Subdivision H—Review of the external administration of a company    230

1615...................... Application of Division 90 of the Insolvency Practice Schedule (Corporations)—general rule               230

1616...................... Application of the Insolvency Practice Schedule (Corporations) provisions that conflict with old Act Court orders—general rule....................................................... 230

1617...................... Old Act continues to apply in relation to ongoing proceedings before a court—general rule   230

1618...................... Court powers to inquire into and make orders................ 231

1619...................... Review by another registered liquidator.......................... 232

1620...................... Removal by creditors...................................................... 233

Division 4—Administrative review                                                                   234

1621...................... Administrative Appeals Tribunal proceedings................ 234

Division 5—Application of other consequential amendments             235

1622...................... Outcome of voting at creditors’ meeting determined by related entity or on casting vote—Court powers........................................................................................ 235

1623...................... Returns and accounts by controllers............................... 235

1624...................... Transfer of books by a controller to a new controller or ASIC                236

1625...................... Officers reporting to controller about corporation’s affairs 236

1626...................... Lodging notice of execution of a deed of company arrangement              236

1627...................... Office of liquidator appointed by the Court.................... 236

1628...................... Report as to company’s affairs to be submitted to liquidator 237

1629...................... Orders for release or deregistration................................. 237

1630...................... Meeting relating to the voluntary winding up of a company 237

1631...................... Pooling determinations................................................... 237

1632...................... Electronic methods of giving or sending certain notices. 238

1633...................... Deregistration following winding up.............................. 238

Division 6—Regulations                                                                                          239

1634...................... Regulations..................................................................... 239

Part 10.26—Transitional provisions relating to Schedule 3 to the Insolvency Law Reform Act 2016  240

1635...................... Application of amendments made by Schedule 3 to the Insolvency Law Reform Act 2016      240

Part 10.28—Transitional provisions relating to the Treasury Laws Amendment (2016 Measures No. 1) Act 2017                                                                                                                242

1637...................... Application of subparagraph 1274(2)(a)(iva) and subsections 1274(2AA) and (2AB)           242

Schedule 2—Insolvency Practice Schedule (Corporations) 243

Part 1—Introduction                                                                                                        243

Division 1—Introduction                                                                                        243

1‑1......................... Object of this Schedule................................................... 243

1‑5......................... Simplified outline of this Schedule................................. 243

Division 5—Definitions                                                                                            245

Subdivision A—Introduction                                                                               245

5‑1......................... Simplified outline of this Division.................................. 245

Subdivision B—The Dictionary                                                                          245

5‑5......................... The Dictionary................................................................ 245

Subdivision C—Other definitions                                                                      248

5‑10....................... Meaning of current conditions....................................... 248

5‑15....................... Meaning of external administration of a company......... 249

5‑20....................... Meaning of external administrator of a company.......... 249

5‑25....................... References to the external administrator of a company... 250

5‑26....................... Property of a company.................................................... 250

5‑27....................... Meaning of pooled group............................................... 250

5‑30....................... Persons with a financial interest in the external administration of a company          251

Part 2—Registering and disciplining practitioners                                        252

Division 10—Introduction                                                                                      252

10‑1....................... Simplified outline of this Part......................................... 252

10‑5....................... Working cooperatively with the Inspector‑General in Bankruptcy           253

Division 15—Register of liquidators                                                                254

15‑1....................... Register of Liquidators................................................... 254

Division 20—Registering liquidators                                                               255

Subdivision A—Introduction                                                                               255

20‑1....................... Simplified outline of this Division.................................. 255

Subdivision B—Registration                                                                               255

20‑5....................... Application for registration............................................. 255

20‑10..................... ASIC may convene a committee to consider................... 256

20‑15..................... ASIC must refer applications to a committee.................. 256

20‑20..................... Committee to consider applications................................. 256

20‑25..................... Committee to report........................................................ 258

20‑30..................... Registration..................................................................... 258

20‑35..................... Conditions imposed on all registered liquidators or a class of registered liquidators                259

Subdivision C—Varying etc. conditions of registration                               260

20‑40..................... Application to vary etc. conditions of registration........... 260

20‑45..................... ASIC may convene a committee to consider applications 260

20‑50..................... ASIC must refer applications to a committee.................. 261

20‑55..................... Committee to consider applications................................. 261

20‑60..................... Committee to report........................................................ 261

20‑65..................... Committee’s decision given effect.................................. 261

Subdivision D—Renewal                                                                                      262

20‑70..................... Application for renewal.................................................. 262

20‑75..................... Renewal.......................................................................... 262

Subdivision E—Offences relating to registration                                          263

20‑80..................... False representation that a person is a registered liquidator 263

Division 25—Insurance                                                                                           264

25‑1....................... Registered liquidators to maintain insurance................... 264

Division 30—Annual liquidator returns                                                         265

30‑1....................... Annual liquidator returns................................................ 265

Division 35—Notice requirements                                                                     267

35‑1....................... Notice of significant events............................................. 267

35‑5....................... Notice of other events..................................................... 268

Division 40—Disciplinary and other action                                                  269

Subdivision A—Introduction                                                                               269

40‑1....................... Simplified outline of this Division.................................. 269

Subdivision B—Direction to comply                                                                 270

40‑5....................... Registered liquidator to remedy failure to lodge documents or give information or documents               270

40‑10..................... Registered liquidator to correct inaccuracies etc.............. 271

40‑15..................... Direction not to accept further appointments................... 273

Subdivision C—Automatic cancellation                                                           274

40‑20..................... Automatic cancellation.................................................... 274

Subdivision D—ASIC may suspend or cancel registration                          274

40‑25..................... ASIC may suspend registration...................................... 274

40‑30..................... ASIC may cancel registration......................................... 276

40‑35..................... Notice of suspension or cancellation............................... 277

Subdivision E—Disciplinary action by committee                                        277

40‑40..................... ASIC may give a show‑cause notice.............................. 277

40‑45..................... ASIC may convene a committee..................................... 279

40‑50..................... ASIC may refer matters to the committee....................... 279

40‑55..................... Decision of the committee............................................... 280

40‑60..................... Committee to report........................................................ 281

40‑65..................... ASIC must give effect to the committee’s decision......... 282

Subdivision F—Lifting or shortening suspension                                          282

40‑70..................... Application to lift or shorten suspension........................ 282

40‑75..................... ASIC may convene a committee to consider applications 282

40‑80..................... ASIC must refer applications to a committee.................. 283

40‑85..................... Committee to consider applications................................. 283

40‑90..................... Committee to report........................................................ 283

40‑95..................... Committee’s decision given effect.................................. 284

Subdivision G—Action initiated by industry body                                        284

40‑100................... Notice by industry bodies of possible grounds for disciplinary action     284

40‑105................... No liability for notice given in good faith etc.................. 286

40‑110................... Meaning of industry bodies............................................ 286

Subdivision H—Consequences of certain disciplinary and other action 286

40‑111................... Appointment of another liquidator if liquidator’s registration is suspended or cancelled         286

Division 45—Court oversight of registered liquidators                         288

45‑1....................... Court may make orders in relation to registered liquidators 288

45‑5....................... Court may make orders about costs................................ 289

Division 50—Committees under this Part                                                     290

50‑1....................... Simplified outline of this Division.................................. 290

50‑5....................... Prescribed body appointing a person to a committee...... 290

50‑10..................... Minister appointing a person to a committee................... 291

50‑15..................... Single committee may consider more than one matter..... 292

50‑20..................... Ongoing consideration of matters by committee............. 293

50‑25..................... Procedure and other rules relating to committees............ 293

50‑30..................... Remuneration of committee members............................. 293

50‑35..................... Committee must only use information etc. for purposes for which disclosed          294

Part 3—General rules relating to external administrations                     296

Division 55—Introduction                                                                                      296

55‑1....................... Simplified outline of this Part......................................... 296

Division 60—Remuneration and other benefits received by external administrators   298

Subdivision A—Introduction                                                                               298

60‑1....................... Simplified outline of this Division.................................. 298

Subdivision B—Remuneration of external administrators—general rules 299

60‑2....................... Application of this Subdivision...................................... 299

60‑5....................... External administrator’s remuneration............................ 299

60‑10..................... Remuneration determinations.......................................... 300

60‑11..................... Review of remuneration determinations.......................... 301

60‑12..................... Matters to which the Court must have regard................. 302

60‑15..................... Maximum default amount............................................... 303

Subdivision C—Remuneration of provisional liquidators                          305

60‑16..................... Remuneration of provisional liquidators......................... 305

Subdivision D—Remuneration of liquidators in winding up by ASIC      305

60‑17..................... Remuneration of liquidators in winding up by ASIC..... 305

Subdivision E—Duties of external administrators relating to remuneration and benefits etc.  306

60‑20..................... External administrator must not derive profit or advantage from the administration of the company       306

Division 65—Funds handling                                                                                309

65‑1....................... Simplified outline of this Division.................................. 309

65‑5....................... External administrator must pay all money into an administration account               309

65‑10..................... Administration accounts................................................. 310

65‑15..................... External administrator must not pay other money into the administration account   311

65‑20..................... Consequences for failure to pay money into administration account        311

65‑25..................... Paying money out of administration account.................. 312

65‑40..................... Handling securities......................................................... 313

65‑45..................... Handling of money and securities—Court directions..... 314

65‑50..................... Rules in relation to consequences for failure to comply with this Division              315

Division 70—Information                                                                                       316

Subdivision A—Introduction                                                                               316

70‑1....................... Simplified outline of this Division.................................. 316

Subdivision B—Administration returns                                                           317

70‑5....................... Annual administration return.......................................... 317

70‑6....................... End of administration return........................................... 318

Subdivision C—Record‑keeping                                                                         320

70‑10..................... Administration books..................................................... 320

70‑15..................... Audit of administration books—ASIC........................... 321

70‑20..................... Audit of administration books—on order of the Court... 322

70‑25..................... External administrator to comply with auditor requirements 322

70‑30..................... Transfer of books to new administrator.......................... 323

70‑31..................... Transfer of books to ASIC etc........................................ 325

70‑35..................... Retention and destruction of books................................. 327

70‑36..................... Books of company in external administration—evidence 328

Subdivision D—Giving information etc. to creditors and others               329

70‑40..................... Right of creditors to request information etc. from external administrator                329

70‑45..................... Right of individual creditor to request information etc. from external administrator 329

70‑46..................... Right of members to request information etc. from external administrator in a members’ voluntary winding up........................................................................................ 330

70‑47..................... Right of individual member to request information etc. from external administrator in a members’ voluntary winding up...................................................................... 331

70‑50..................... Reporting to creditors and members............................... 331

Subdivision E—Other requests for information etc.                                     332

70‑55..................... Commonwealth may request information etc.................. 332

Subdivision F—Reporting to ASIC                                                                    333

70‑60..................... Insolvency Practice Rules may provide for reporting to ASIC                333

Subdivision G—External administrator may be compelled to comply with requests for information etc.            334

70‑65..................... Application of this Subdivision...................................... 334

70‑70..................... ASIC may direct external administrator to comply with the request for relevant material        334

70‑75..................... ASIC must notify external administrator before giving a direction under section 70‑70          335

70‑80..................... ASIC must not direct external administrator to give the relevant material if external administrator entitled not to comply with the request.................................................. 335

70‑85..................... ASIC may impose conditions on use of the relevant material  336

70‑90..................... Court may order relevant material to be given................. 336

Division 75—Meetings                                                                                             338

75‑1....................... Simplified outline of this Division.................................. 338

75‑5....................... Other obligations to convene meetings not affected........ 338

75‑10..................... External administrator may convene meetings................ 338

75‑15..................... External administrator must convene meeting in certain circumstances    339

75‑20..................... External administrator must convene meeting if required by ASIC          340

75‑25..................... External administrator’s representative at meetings......... 340

75‑30..................... ASIC may attend meetings............................................. 341

75‑35..................... Commonwealth may attend certain meetings etc............. 341

75‑40..................... Proposals to creditors or contributories without meeting 341

75‑41..................... Outcome of voting at creditors’ meeting determined by related entity—Court powers            343

75‑42..................... Creditors’ resolution passed because of casting vote—Court review       344

75‑43..................... Proposed creditors’ resolution not passed because of casting vote—Court’s powers              345

75‑44..................... Interim order on application under section 75‑41, 75‑42 or 75‑43           346

75‑45..................... Order under section 75‑41 or 75‑42 does not affect act already done pursuant to resolution   347

75‑50..................... Rules relating to meetings............................................... 347

Division 80—Committees of inspection                                                           349

80‑1....................... Simplified outline of this Division.................................. 349

80‑5....................... Application of sections 80‑10 to 80‑25........................... 350

80‑10..................... Committee of inspection—company not a member of a pooled group     350

80‑15..................... Appointment and removal of members of committee of inspection by creditors generally       350

80‑20..................... Appointment of committee member by large creditor..... 351

80‑25..................... Appointment of committee member by employees......... 352

80‑26..................... Committee of inspection—pooled groups....................... 353

80‑27..................... External administrator must convene meeting in certain circumstances    354

80‑30..................... Committees of inspection—procedures etc..................... 356

80‑35..................... Functions of committee of inspection............................. 356

80‑40..................... Committee of inspection may request information etc..... 357

80‑45..................... Reporting to committee of inspection.............................. 357

80‑50..................... Committee of inspection may obtain specialist advice or assistance         358

80‑55..................... Obligations of members of committee of inspection....... 359

80‑60..................... Obligations of creditor appointing a member of committee of inspection 361

80‑65..................... ASIC may attend committee meetings............................ 362

80‑70..................... The Court may inquire into conduct of the committee..... 362

Division 85—Directions by creditors                                                               363

85‑1....................... Simplified outline of this Division.................................. 363

85‑5....................... External administrator to have regard to directions given by creditors     363

Division 90—Review of the external administration of a company 364

Subdivision A—Introduction                                                                               364

90‑1....................... Simplified outline of this Division.................................. 364

Subdivision B—Court powers to inquire and make orders                         365

90‑5....................... Court may inquire on own initiative................................ 365

90‑10..................... Court may inquire on application of creditors etc............ 365

90‑15..................... Court may make orders in relation to external administration.. 366

90‑20..................... Application for Court order............................................ 368

90‑21..................... Meetings to ascertain wishes of creditors or contributories 369

Subdivision C—Review by another registered liquidator                           370

90‑22..................... Application of this Subdivision...................................... 370

90‑23..................... Appointment of reviewing liquidator by ASIC or the Court 370

90‑24..................... Appointment of reviewing liquidator by creditors etc..... 371

90‑25..................... Reviewing liquidator must consent to appointment......... 373

90‑26..................... Review............................................................................ 373

90‑27..................... Who pays for a review?.................................................. 374

90‑28..................... Court orders in relation to review................................... 374

90‑29..................... Rules about reviews........................................................ 376

Subdivision D—Removal by creditors                                                              376

90‑30..................... Application of this Subdivision...................................... 376

90‑35..................... Removal by creditors...................................................... 377

Part 4—Other matters                                                                                                     379

Division 95—Introduction                                                                                      379

95‑1....................... Simplified outline of this Part......................................... 379

Division 100—Other matters                                                                               380

100‑5..................... External administrator may assign right to sue under this Act  380

100‑6..................... Approved forms............................................................. 380

Division 105—The Insolvency Practice Rules                                             382

105‑1..................... The Insolvency Practice Rules........................................ 382

Schedule 3—Penalties                                                                                            383

Schedule 4—Transfer of financial institutions and friendly societies         419

Part 1—Preliminary                                                                                                         419

1............................ Definitions...................................................................... 419

Part 2—Financial institutions that became companies                                423

Division 1—Registration and its consequences                                           423

3............................ Background (registration of transferring financial institution as company)              423

4............................ Rules applied to transferring institution that was registered as a company under the transfer provisions 423

11.......................... Transferring financial institution under external administration                424

Division 2—Membership                                                                                         427

12.......................... Institution that became a company limited by shares....... 427

13.......................... Institution that became a company limited by guarantee.. 428

14.......................... Institution becoming a company limited by shares and guarantee            429

15.......................... Redeemable preference shares that were withdrawable shares 430

16.......................... Liability of members on winding up............................... 430

Division 3—Share capital                                                                                       432

17.......................... Share capital.................................................................... 432

18.......................... Application of no par value rule...................................... 433

19.......................... Calls on partly‑paid shares.............................................. 433

20.......................... References in contracts and other documents to par value 433

Part 4—The transition period                                                                                    435

25.......................... ASIC may direct directors of a company to modify its constitution         435

27.......................... When certain modifications of a company’s constitution under an exemption or declaration take effect  436

Part 5—Demutualisations                                                                                             438

29.......................... Disclosure for proposed demutualisation........................ 438

30.......................... ASIC’s exemption power............................................... 440

31.......................... Coverage of disclosure statement.................................... 441

32.......................... Registration of disclosure statement................................ 441

33.......................... Expert’s report................................................................ 443

34.......................... Unconscionable conduct in relation to demutualisations. 444

35.......................... Orders the Court may make............................................ 445

Part 6—Continued application of fundraising provisions of the Friendly Societies Code            447

36.......................... Friendly Societies Code to apply to offers of interests in benefit funds   447

Part 7—Transitional provisions                                                                                449

37.......................... Unclaimed money........................................................... 449

38.......................... Modification by regulations............................................ 450

39.......................... Regulations may deal with transitional, saving or application matters      451

Endnotes                                                                                                                                  453

Endnote 1—About the endnotes                                                                          453

Endnote 2—Abbreviation key                                                                              455

Endnote 3—Legislation history                                                                           456

Endnote 4—Amendment history                                                                         473

 


Chapter 10Transitional provisions

Part 10.1Transition from the old corporations legislation

Division 1Preliminary

1370  Object of Part

             (1)  Subject to subsection (3), the object of this Part is to provide for a smooth transition from the regime provided for in the old corporations legislation of the States and Territories in this jurisdiction to the regime provided for in the new corporations legislation, so that individuals, bodies corporate and other bodies are, to the greatest extent possible, put in the same position immediately after the commencement as they would have been if:

                     (a)  that old corporations legislation had, from time to time when it was in force, been valid Commonwealth legislation applying throughout those States and Territories; and

                     (b)  the new corporations legislation (to the extent it contains provisions that correspond to provisions of the old corporations legislation as in force immediately before the commencement) were a continuation of that old corporations legislation as so applying.

Note:          The new corporations legislation contains provisions that correspond to most of the provisions of the old corporations legislation. Generally, the only exceptions to this are provisions of the old corporations legislation that related to the fact that the Corporations Law operated separately in each of the States and Territories (rather than as a single national law).

             (2)  In resolving any ambiguity as to the meaning of any of the other provisions of this Part, an interpretation that is consistent with the object of this Part is to be preferred to an interpretation that is not consistent with that object.

             (3)  This Part does contain some provisions (for example, subsection 1400(4)) which apply or extend to matters under the old corporations legislation of any non‑referring State.

1371  Definitions

             (1)  In this Part:

carried over provision of the old corporations legislation of a State or Territory in this jurisdiction means a provision of the old corporations legislation of that State or Territory that:

                     (a)  was in force immediately before the commencement; and

                     (b)  corresponds to a provision of the new corporations legislation.

commencement means the commencement of this Act.

corresponds has a meaning affected by subsections (2), (3) and (4).

instrument means:

                     (a)  any instrument of a legislative character (including an Act or regulations) or of an administrative character; or

                     (b)  any other document.

liability includes a duty or obligation.

made includes issued, given or published.

new corporations legislation means:

                     (a)  this Act; and

                     (b)  the new Corporations Regulations (as amended and in force from time to time) and any other regulations made under this Act; and

                     (c)  the laws of the Commonwealth referred to in paragraph (c) of the definition of old corporations legislation, being those laws as they apply after the commencement; and

                     (d)  the preserved instruments.

new Corporations Regulations means the regulations that, because of section 1380, have effect as if they were made under section 1364.

old application Act for a State or Territory means:

                     (a)  in the case of New South Wales—the Corporations (New South Wales) Act 1990 of New South Wales as in force from time to time before the commencement; or

                     (b)  in the case of Victoria—the Corporations (Victoria) Act 1990 of Victoria as in force from time to time before the commencement; or

                     (c)  in the case of Queensland—the Corporations (Queensland) Act 1990 of Queensland as in force from time to time before the commencement; or

                     (d)  in the case of Western Australia—the Corporations (Western Australia) Act 1990 of Western Australia as in force from time to time before the commencement; or

                     (e)  in the case of South Australia—the Corporations (South Australia) Act 1990 of South Australia as in force from time to time before the commencement; or

                      (f)  in the case of Tasmania—the Corporations (Tasmania) Act 1990 of Tasmania as in force from time to time before the commencement; or

                     (g)  in the case of the Australian Capital Territory—the old Corporations Act; or

                     (h)  in the case of the Northern Territory—the Corporations (Northern Territory) Act 1990 of the Northern Territory as in force from time to time before the commencement.

old Corporations Act means the Corporations Act 1989 as in force from time to time before the commencement.

old Corporations Law means:

                     (a)  when used in relation to a particular State or Territory—the Corporations Law of that State or Territory, within the meaning of the old application Act for that State or Territory, as in force from time to time before the commencement; or

                     (b)  when used in general terms—the Corporations Law set out in section 82 of the old Corporations Act as in force from time to time before the commencement.

old corporations legislation of a particular State or Territory means:

                     (a)  the old Corporations Law and old Corporations Regulations of that State or Territory, and any instruments made under that Law or those Regulations; and

                     (b)  the old application Act for that State or Territory, and any instruments made under that Act; and

                     (c)  either:

                              (i)  when used in relation to a State or the Northern Territory—the laws of the Commonwealth as applying in relation to the old Corporations Law and the old Corporations Regulations of the State or Territory from time to time before the commencement as laws of, or for the government of, that State or Territory because of Part 8 of the old Application Act for that State or Territory, and any instruments made under those laws as so applying; or

                             (ii)  when used in relation to the Australian Capital Territory—the laws of the Commonwealth referred to in subparagraph (i), but as applying of their own force in relation to the old Corporations Law and old Corporations Regulations of the Territory, and any instruments made under those laws as so applying.

old Corporations Regulations means:

                     (a)  when used in relation to a particular State or Territory—the Corporations Regulations of that State or Territory, within the meaning of the old application Act for that State or Territory, as in force from time to time before the commencement; or

                     (b)  when used in general terms—the regulations made under section 22 of the old Corporations Act as in force from time to time before the commencement.

order, in relation to a court, includes any judgment, conviction or sentence of the court.

pre‑commencement right or liability has the meaning given by subsection 1400(1) or 1401(1).

preserved instrument means an instrument that, because of section 1399, has effect after the commencement as if it were made under a provision of the new corporations legislation.

right includes an interest or status.

substituted right or liability has the meaning given by subsection 1400(2) or 1401(3).

this Part includes regulations made for the purposes of any of the provisions of this Part.

             (2)  Subject to subsection (4), for the purposes of this Part, a provision or part (the old provision or part) of the old corporations legislation of a State or Territory corresponds to a provision or part (the new provision or part) of the new corporations legislation (and vice versa) if:

                     (a)  the old provision or part and the new provision or part are substantially the same, unless the regulations specify that the 2 provisions or parts do not correspond; or

                     (b)  the regulations specify that the 2 provisions or parts correspond.

Note:          The range of provisions of the new corporations legislation that may be corresponding provisions for the purposes of this Part is affected by sections 1401 and 1408, which take certain provisions of the old corporations legislation to be included in the new corporations legislation.

             (3)  For the purposes of paragraph (2)(a), differences of all or any of the following kinds are not sufficient to mean that 2 provisions or parts are not substantially the same:

                     (a)  differences in the numbering of the provisions or parts;

                     (b)  differences of a minor technical nature (for example, differences in punctuation, or differences that are attributable to the correction of incorrect cross references);

                     (c)  the fact that one of the provisions refers to a corresponding previous law and the other does not;

                     (d)  that fact that:

                              (i)  the old provision or part allowed a court to exercise powers on its own motion but the new provision or part does not; or

                             (ii)  the old provision or part required a court to apply a criterion of public interest but the new provision or part requires a court to apply a criterion of justice and equity; or

                            (iii)  the new provision or part requires ASIC to take account of public interest but the old provision or part did not;

                     (e)  other differences that are attributable to the fact that the new corporations legislation applies as a Commonwealth law throughout this jurisdiction;

                      (f)  other differences of a kind prescribed by the regulations for the purposes of this paragraph.

This subsection is not intended to otherwise limit the circumstances in which 2 provisions or parts are, for the purposes of paragraph (2)(a), substantially the same.

             (4)  The regulations may provide that a specified provision of the old corporations legislation of a State or Territory does, or does not, correspond to a specified provision of the new corporations legislation.

1372  Relationship of Part with State validation Acts

             (1)  This Part applies to an invalid administrative action of a Commonwealth authority or an officer of the Commonwealth (within the meaning of a State validation Act) as if the circumstances that made the authority’s or officer’s action an invalid administrative action had not made the action invalid.

Note 1:       So, for example, in determining whether the purported registration of a company is an action to which this Part (in particular Division 2) applies, the circumstances that made the action an invalid administrative action for the purposes of a State validation Act are to be disregarded.

Note 2:       For the status and effect of invalid administrative actions in relation to times before the commencement, see the State validation Acts.

             (2)  However, if there are other circumstances that affect or may affect the validity of the action, neither this section, nor anything else in this Part, is taken to negate the effect of those other circumstances.

             (3)  If:

                     (a)  a person would have had a right or liability under a provision (the old provision) of the old corporations legislation of a State if the circumstances that made the authority’s or officer’s action an invalid administrative action (within the meaning of the State validation Act of that State) had not made the action invalid; and

                     (b)  the effect of that State validation Act in relation to that action is to declare that the person has, and is taken always to have had, the same rights and liabilities as they would have had under the old provision if the invalid administrative action had been taken, or purportedly taken, at the relevant time by a duly authorised State authority or officer of the State (within the meaning of that Act);

this Part applies as if:

                     (c)  a reference to a right or liability arising under the old corporations legislation included a reference to the right or liability that the person is declared to have by the State validation Act; and

                     (d)  that right or liability arose under the old provision.

             (4)  In this section:

State validation Act means an Act of a State in this jurisdiction under which certain administrative actions (within the meaning of that Act) taken, or purportedly taken, at or before the commencement by Commonwealth authorities or officers of the Commonwealth (within the meaning of that Act) pursuant to functions or powers (the relevant functions or powers) conferred, or purportedly conferred, by or under laws that include the old application Act for that State have, and are deemed always to have had, the same force and effect for all purposes as they would have had if:

                     (a)  they had been taken, or purportedly taken by a State authority or officer of the State (within the meaning of that Act); and

                     (b)  the relevant functions or powers had been duly conferred on those authorities or officers.

1373  References to things taken or deemed to be the case etc.

                   If:

                     (a)  a law of a State or Territory in this jurisdiction had effect before the commencement:

                              (i)  to take or deem something to have happened or to be the case, or to have a particular effect, under or for the purposes of the old corporations legislation of that State or Territory (or a provision of that legislation); or

                             (ii)  to give something an effect for the purposes of the old corporations legislation of that State or Territory (or a provision of that legislation) that it would not otherwise have had; and

                     (b)  that effect was continuing immediately before the commencement;

this Part applies as if that thing had actually happened or were actually the case, or as if that thing actually had that other effect.

Note:          So, for example, if a provision of the old corporations legislation, or another law, of a State or Territory in this jurisdiction took a company to be registered under Part 2A.2 of the old Corporations Law of the State or Territory, this Part applies as if the company were actually registered under that Part.

1374  Existence of several versions of old corporations legislation does not result in this Part operating to take same thing to be done several times under new corporations legislation etc.

                   If, apart from this section, a provision of this Part (the transitional provision) would, because each State or Territory in this jurisdiction had its own old corporations legislation (containing parallel provisions) before the commencement, operate so that:

                     (a)  a particular thing done before the commencement would be taken to be done, or have effect, 2 or more times by, under or for the purposes of, a provision of this Act; or

                     (b)  a right or liability would be created 2 or more times in respect of a particular event, circumstance or thing that happened before the commencement; or

                     (c)  a particular result or effect would be produced 2 or more times for the purposes of the new corporations legislation in relation to the same matter;

the transitional provision is taken to operate so that:

                     (d)  if paragraph (a) applies—the thing is taken to be done or have effect only once by, under, or for the purposes of, the provision of the new corporations legislation; or

                     (e)  if paragraph (b) applies—the right or liability is created only once in respect of the event, circumstance or thing; or

                      (f)  if paragraph (c) applies—the result or effect is produced only once in relation to the matter.

Note:          So, for example, if a body (because of the operation of section 102A of the old Corporations Law) was registered under section 601CB of the old Corporations Law of several States and Territories and those registrations were still in force immediately before the commencement, section 1399 does not apply separately to each of those registrations.

1375  Penalty units in respect of pre‑commencement conduct remain at $100

             (1)  If, because of this Part, an offence can be prosecuted after the commencement in respect of conduct that occurred solely before the commencement, the amount of a penalty unit in respect of that offence is $100.

             (2)  If, because of this Part, section 1314 of this Act applies to conduct that started before the commencement and that continued after the commencement, then, for the purposes of the application of that section to that conduct (including the post‑commencement conduct), the amount of a penalty unit is $100.

             (3)  This section has effect despite section 4AA of the Crimes Act 1914.

1376  Ceasing to be a referring State does not affect previous operation of this Part

                   If, after the commencement, a State ceases to be a referring State, that does not undo or affect:

                     (a)  the effects that this Part has already had in relation to matters connected with that State; or

                     (b)  the ongoing effect of this Act as it operates because of the effects referred to in paragraph (a).

Division 2Carrying over registration of companies

1377  Division has effect subject to Division 7 regulations

                   This Division has effect subject to regulations made for the purposes of Division 7.

1378  Existing registered companies continue to be registered

             (1)  If:

                     (a)  before the commencement, a company was registered under Part 2A.2 of the old Corporations Law of a State or Territory in this jurisdiction; and

                     (b)  that registration was still in force immediately before the commencement;

the registration of the company has effect (and may be dealt with) after the commencement as if it were a registration of the company under Part 2A.2 of this Act as a company of whichever of the company types listed in subsection (2) corresponds to its previous class and type.

Note:          The carrying over of other matters (for example, the registration of registered managed investment schemes and of registered bodies) is covered by the more general transitional provisions in Division 6.

             (2)  The company types are as follows:

                     (a)  a proprietary company limited by shares;

                     (b)  an unlimited proprietary company;

                     (c)  a proprietary company limited both by shares and by guarantee;

                     (d)  a public company limited by shares;

                     (e)  an unlimited public company;

                      (f)  a company limited by guarantee;

                     (g)  a public company limited both by shares and by guarantee;

                     (h)  a no liability company.

             (3)  The application of subsection (1) in relation to the registration of a company does not have the effect of creating that company as a new legal entity. Rather, it has the effect of continuing the existence of the legal entity that is that company with the same characteristics and attributes as it had immediately before the commencement. The date of the company’s first registration remains the same (see subsection 1402(2)), and a new certificate of registration does not need to be issued.

Note:          The company will, for example, retain the same name, ACN, constitution and registered office as it had immediately before the commencement. Its certificate of registration will (because of section 1399) have effect as if it were issued under section 118 of this Act.

             (4)  The State or Territory in which the company is taken to be registered is the State or Territory under whose old Corporations Law the company was registered immediately before commencement. This subsection has effect subject to subsection 119A(3).

Note:          For the general provisions about jurisdiction of incorporation and jurisdiction of registration, see section 119A.

Division 3Carrying over the old Corporations Regulations

1379  Division has effect subject to Division 7 regulations

                   This Division has effect subject to regulations made for the purposes of Division 7.

1380  Old Corporations Regulations continue to have effect

                   The old Corporations Regulations that were made for the purposes of provisions of the old Corporations Law that correspond to provisions of this Act and that were in force immediately before the commencement continue to have effect (and may be dealt with) after the commencement as if:

                     (a)  they were regulations in force under section 1364 of this Act; and

                     (b)  they were made for the purposes of the corresponding provisions of this Act.

Division 4Court proceedings and orders

1381  Division has effect subject to Division 7 regulations

                   This Division has effect subject to regulations made for the purposes of Division 7.

1382  Definitions

             (1)  In this Division:

appeal or review proceeding, in relation to an order of a court, means a proceeding by way of appeal, or otherwise seeking review, of the order.

enforcement proceeding, in relation to an order made by a court, means:

                     (a)  a proceeding to enforce the order; or

                     (b)  any other proceeding in respect of a breach of the order.

federal corporations proceeding means a proceeding of any of the following kinds that, immediately before the commencement, was before a court:

                     (a)  a proceeding in respect of a matter arising under the Administrative Decisions (Judicial Review) Act 1977 involving or related to a decision made under a provision of the old corporations legislation of a State or Territory in this jurisdiction;

                     (b)  a proceeding for a writ of mandamus or prohibition, or an injunction, against an officer or officers of the Commonwealth (within the meaning of section 75 of the Constitution) in relation to a matter to which a provision of the old corporations legislation of a State or Territory in this jurisdiction applied;

                   (ba)  a proceeding that relates to a matter to which a provision of the Corporations Act 1989 applied (other than a proceeding that relates to a matter to which a provision of the Corporations Law of the Australian Capital Territory applied);

                   (bb)  a proceeding in relation to a matter to which a provision of the old corporations legislation of a State or Territory in this jurisdiction applied:

                              (i)  in which the Commonwealth was seeking an injunction or a declaration; or

                             (ii)  to which the Commonwealth, or a person suing or being sued on behalf of the Commonwealth, was a party;

                   (bc)  any other proceeding in relation to a matter to which a provision of the old corporations legislation of a State in this jurisdiction applied that was in the exercise of federal jurisdiction;

                   (bd)  any other proceeding in relation to a matter to which a provision of the old corporations legislation of a Territory in this jurisdiction applied that would be covered by paragraph (bc) if the Territory had been a State;

                     (c)  a proceeding in the court’s accrued federal jurisdiction in relation to a matter to which a provision of the old corporations legislation of a State or Territory in this jurisdiction applied.

interlocutory application means an application that:

                     (a)  is made during the course of a proceeding; and

                     (b)  is for an order that is incidental to the principal object of that proceeding, including, for example:

                              (i)  an order about the conduct of that proceeding; or

                             (ii)  an order assisting a party to that proceeding to present their case in that proceeding; or

                            (iii)  an order protecting or otherwise dealing with property that is the subject matter of that proceeding;

                            but not including an order making a final determination of existing rights or liabilities.

interlocutory order means:

                     (a)  an order made in relation to an interlocutory application; or

                     (b)  an order or direction about the conduct of a proceeding.

interlocutory proceeding means a proceeding:

                     (a)  dealing only with; or

                     (b)  to the extent it deals with;

an interlocutory application.

primary proceeding means a proceeding other than an interlocutory proceeding.

proceeding means a proceeding, whether criminal or civil, before a court.

             (2)  For the purposes of this Part, if an interlocutory proceeding relates to a proceeding that is itself an interlocutory proceeding, the first‑mentioned proceeding is taken to relate also to the primary proceeding to which the second‑mentioned proceeding relates.

1383  Treatment of court proceedings under or related to the old corporations legislation—proceedings other than federal corporations proceedings

             (1)  This section applies to a proceeding, other than a federal corporations proceeding, in relation to which the following paragraphs are satisfied:

                     (a)  the proceeding was started in a court before the commencement; and

                     (b)  the proceeding was:

                              (i)  under a provision of the old corporations legislation of a State or Territory in this jurisdiction; or

                             (ii)  brought as, or connected with, a prosecution for an offence against a provision of the old corporations legislation of a State or Territory in this jurisdiction; and

                     (c)  the proceeding was not an enforcement proceeding, or an appeal or review proceeding, in relation to an order of a court; and

                     (d)  the proceeding had not been concluded or terminated before the commencement; and

                     (e)  either:

                              (i)  if the proceeding is a primary proceeding—no final determination of any of the existing rights or liabilities at issue in the proceeding had been made before the commencement; or

                             (ii)  if the proceeding is an interlocutory proceeding—this section applies to the primary proceeding to which the interlocutory proceeding relates.

             (2)  In this section:

                     (a)  the proceeding to which this section applies is called the old proceeding; and

                     (b)  the provision of the old corporations legislation referred to in whichever of subparagraphs (1)(b)(i) and (ii) applies is called the relevant old provision.

             (3)  A proceeding (the new proceeding) equivalent to the old proceeding is, on the commencement, taken to have been brought in the same court, exercising federal jurisdiction:

                     (a)  if subparagraph (1)(b)(i) applies—under the provision of the new corporations legislation that corresponds to the relevant old provision; or

                     (b)  if subparagraph (1)(b)(ii) applies—as, or connected with, a prosecution for an offence against the provision of the new corporations legislation that corresponds to the relevant old provision.

To the extent that the old proceeding, before the commencement, related to pre‑commencement rights or liabilities, the new proceeding relates to the substituted rights and liabilities in relation to those pre‑commencement rights or liabilities

Note 1:       See sections 1400 and 1401 for the creation of substituted rights and liabilities.

Note 2:       In all cases, there will be a provision of the new corporations legislation that corresponds to the relevant old provision, either because:

(a)    the new corporations legislation actually contains a provision that corresponds to the relevant old provision; or

(b)    the new corporations legislation, because of section 1401 or 1408, is taken to include the relevant old provision (whether with or without modifications), in which case the provision so taken to be included will be the corresponding provision.

             (4)  The following provisions apply in relation to the new proceeding:

                     (a)  the parties to the new proceeding are the same as the parties to the old proceeding;

                     (b)  subject to subsections (5) and (6), and to any order to the contrary made by the court, the court must deal with the new proceeding as if the steps that had been taken for the purposes of the old proceeding before the commencement had been taken for the purposes of the new proceeding.

             (5)  If:

                     (a)  an interlocutory order was made before the commencement for the purpose of, or in relation to, the old proceeding; and

                     (b)  that interlocutory order was in force immediately before the commencement;

the rights and liabilities of all persons (including rights and liabilities arising wholly or partly because of conduct occurring before the commencement) are declared to be, for all purposes, the same as if the interlocutory order had instead been made by the same court, in the exercise of federal jurisdiction, for the purpose of, or in relation to, the new proceeding.

             (6)  The court may make orders doing all or any of the following:

                     (a)  cancelling or varying rights or liabilities that a person has because of subsection (5);

                     (b)  substituting other rights or liabilities for rights or liabilities a person has because of subsection (5);

                     (c)  adding rights or liabilities to the rights or liabilities a person has because of subsection (5);

                     (d)  enforcing, or otherwise dealing with conduct contrary to, a right or liability a person has because of subsection (5) in the same way as it could enforce, or deal with, the right, liability or conduct if the right or liability had arisen under or because of an order made by the court in the exercise of federal jurisdiction under the new corporations legislation.

1384  Treatment of court proceedings under or related to the old corporations legislation—federal corporations proceedings

             (1)  This section applies to a proceeding in relation to which the following paragraphs are satisfied:

                     (a)  the proceeding was started in a court before the commencement; and

                     (b)  the proceeding was a federal corporations proceeding that related to a matter to which a provision of the old corporations legislation of a State or Territory in this jurisdiction applied; and

                     (c)  the proceeding had not been concluded or terminated before the commencement.

             (2)  In this section:

                     (a)  the proceeding to which this section applies is called the continued proceeding; and

                     (b)  the provision of the old corporations legislation referred to in paragraph (1)(b) is called the relevant old provision.

             (3)  Subject to subsection (4):

                     (a)  the continued proceeding continues after the commencement in the same court as if it were, and always had been, a proceeding in relation to a matter to which the provision of the new corporations legislation that corresponds to the relevant old provision applies; and

                     (b)  to the extent that the proceeding, before the commencement, related to pre‑commencement rights or liabilities, the proceeding, as continued, relates, and as so continuing is taken always to have related, to the substituted rights and liabilities in relation to those pre‑commencement rights or liabilities

Note 1:       See sections 1400 and 1401 for the creation of substituted rights and liabilities.

Note 2:       In all cases, there will be a provision of the new corporations legislation that corresponds to the relevant old provision, either because:

(a)    the new corporations legislation actually contains a provision that corresponds to the relevant old provision; or

(b)    the new corporations legislation, because of section 1401 or 1408, is taken to include the relevant old provision (whether with or without modifications), in which case the provision so taken to be included will be the corresponding provision.

             (4)  Subject to any order to the contrary made by the court, the court must deal with the continued proceeding as if:

                     (a)  the steps that had been taken for the purposes of the proceeding before the commencement had been taken for the purpose of the proceeding as continued by this section; and

                     (b)  any orders made in relation to the proceeding before the commencement had been made in relation to the proceeding as continued by this section.

1384A  Appeals etc. in relation to some former federal corporations proceedings

             (1)  This section applies to a proceeding in relation to which all of the following paragraphs are satisfied:

                     (a)  the proceeding was started in a court before the commencement;

                     (b)  the proceeding was a federal corporations proceeding that related to a matter to which a provision of the old corporations legislation of a State or Territory in this jurisdiction applied; and

                     (c)  the proceeding had been concluded or terminated before the commencement.

             (2)  A decision or order made in the proceeding may be appealed against, or otherwise reviewed, as if it had been made in a proceeding that related to a matter to which a provision of this Act applied.

             (3)  An order made in the proceeding may be enforced as if it had been made in a proceeding that related to a matter to which a provision of this Act applied.

1384B  Effect of decisions and orders made in federal corporations proceedings before commencement

             (1)  For the avoidance of doubt, if:

                     (a)  a proceeding was started in a court before the commencement; and

                     (b)  the proceeding was a federal corporations proceeding that related to a matter to which a provision of the old corporations legislation of a State or Territory in this jurisdiction applied; and

                     (c)  a decision was made or an order given in the proceeding before the commencement;

the decision or order continues to have effect after the commencement despite the provision of the old corporations legislation ceasing to have effect.

             (2)  This section does not limit the operation of section 1384 in relation to the decision or order.

1385  References to proceedings and orders in the new corporations legislation

             (1)  Subject to subsection (5), a reference in the new corporations legislation to the taking of a proceeding, or a step in a proceeding, in a court under or in relation to a part or provision of the new corporations legislation includes a reference to the taking of a proceeding, or the equivalent step in a proceeding:

                     (a)  before the commencement under or in relation to the corresponding part or provision of the old corporations legislation of a State or Territory; or

                     (b)  after the commencement under or in relation to the corresponding part or provision of the old corporations legislation of a State or Territory in this jurisdiction, as that legislation continues to have effect after the commencement.

             (2)  Subject to subsections (3), (4) and (5), a reference in the new corporations legislation to an order made by a court under or in relation to a part or provision of the new corporations legislation includes a reference to an order made:

                     (a)  before the commencement under or in relation to the corresponding part or provision of the old corporations legislation of a State or Territory; or

                     (b)  after the commencement under or in relation to the corresponding part or provision of the old corporations legislation of a State or Territory in this jurisdiction, as that legislation continues to have effect after the commencement.

             (3)  Nothing in subsection (2) is taken to produce a result that would:

                     (a)  make a person liable, under the new corporations legislation, to any penalty (whether civil or criminal) provided for in an order referred to in paragraph (2)(a) or (b); or

                     (b)  enable an enforcement proceeding, or an appeal or review proceeding, in relation to such an order to be taken in a court under the new corporations legislation; or

                     (c)  enable proceedings by way of appeal, or other review, of such an order to be taken in a court under the new corporations legislation.

             (4)  If, after the commencement, an order referred to in paragraph (2)(a) or (b) is varied or set aside on appeal or review, subsection (2) applies, or is taken to have applied, from the time from which the variation or setting aside takes or took effect, as if:

                     (a)  if the order is varied—the order had been made as so varied; or

                     (b)  if the order is set aside—the order had not been made.

             (5)  The regulations may provide that subsection (1) or (2) does not apply in relation to a particular reference or class of references in the new corporations legislation.

Division 5Other specific transitional provisions

1386  Division has effect subject to Division 7 regulations

                   This Division has effect subject to regulations made for the purposes of Division 7.

1387  Certain applications lapse on the commencement

             (1)  An application:

                     (a)  under section 117 for the registration of a company; or

                     (b)  under section 601BC for the registration of a body as a company;

that was made by a person before the commencement, but that had not been dealt with by the commencement, lapses on the commencement.

             (2)  Any fee that was paid in respect of the application must be returned to the person, unless it is, with the person’s permission, credited against the fee payable in respect of another application the person makes under this Act after the commencement.

1388  Carrying over the Partnerships and Associations Application Order

                   The application order in force immediately before the commencement for paragraph 115(b) of the old Corporations Law of each State and Territory in this jurisdiction continues to have effect (and may be dealt with) after the commencement as if it were a regulation in force under section 1364 of this Act made for the purposes of subsection 115(2) of this Act.

1389  Evidentiary certificates

             (1)  A certificate by ASIC (whether issued before or after the commencement) stating that a company was registered under the old Corporations Law of a State or Territory in this jurisdiction is conclusive evidence that:

                     (a)  all requirements of that Law for the company’s registration were complied with; and

                     (b)  the company was duly registered as a company under that Law on the date (if any) specified in the certificate.

             (2)  A certificate issued before the commencement under pre‑Corporations Law legislation (see subsection (3)) by the authority responsible for administering that legislation stating that a body was registered as a company under that legislation or other pre‑Corporations Law legislation is conclusive evidence that:

                     (a)  all requirements of that legislation for the company’s registration were complied with; and

                     (b)  the company was duly registered as a company under that legislation on the date (if any) specified in the certificate.

             (3)  In subsection (2):

pre‑Corporations Law legislation means legislation that was, for the purposes of the old Corporations Law of a State or Territory in this jurisdiction, a corresponding previous law in relation to that old Corporations Law.

1390  Preservation of nomination of body corporate as SEGC

                   The nomination in force immediately before the commencement under section 67 of the old Corporations Act continues to have effect (and may be dealt with) after the commencement as if it were a nomination under section 890A of this Act.

1391  Preservation of identification of satisfactory records

                   A notice in force immediately before the commencement under section 70 of the old Corporations Act continues to have effect (and may be dealt with) after the commencement as if it were a notice under subsection 147(5) of this Act.

1392  Retention of information obtained under old corporations legislation of non‑referring State

                   If a particular State is not a referring State on the commencement, that does not mean that ASIC must then remove from, or cease to retain in, a database or register it maintains information that ASIC obtained before the commencement under or because of (whether in whole or in part) the operation of the old corporations legislation of that State.

1393  Transitional provisions relating to section 1351 fees

             (1)  If:

                     (a)  either:

                              (i)  before the commencement, a person paid an amount as required by section 1351 of the old Corporations Law of a State or Territory in respect of a particular matter; or

                             (ii)  after the commencement, a person pays an amount as required by subsection 9(2) of the Corporations (Fees) Act 2001 in respect of a particular matter; and

                     (b)  a fee is also payable under section 1351 of this Act in respect of the same matter;

the payment they made or make as mentioned in subparagraph (a)(i) or (ii) is taken to satisfy their liability to pay the fee referred to in paragraph (b).

             (2)  If:

                     (a)  before the commencement, a person paid a deposit as required by section 1357 of the old Corporations Law of a State or Territory in respect of a particular matter; and

                     (b)  a fee is payable under section 1351 of this Act in respect of the same matter;

the deposit must be applied against the liability to pay the fee.

1394  Transitional provisions relating to securities exchange fidelity fund levies

             (1)  If:

                     (a)  before the commencement, a person paid an amount as required by subsection 902(1) of the old Corporations Law of a State or Territory in order to be admitted to:

                              (i)  membership of a securities exchange; or

                             (ii)  membership of a partnership in a member firm recognised by a securities exchange; and

                     (b)  that person had not been so admitted by the commencement of this Act;

the payment they made before the commencement is taken to satisfy their liability to pay the levy referred to in subsection 902(1) of this Act in respect of their admission after the commencement to that securities exchange or firm.

             (2)  If:

                     (a)  either:

                              (i)  before the commencement, a person paid an amount as required by subsection 902(2) of the old Corporations Law of a State or Territory to a securities exchange in respect of a year some or all of which occurs after the commencement of this Act; or

                             (ii)  after the commencement, a person pays an amount as required by subsection 8(3) of the Corporations (Securities Exchanges Levies) Act 2001 in respect of a year some or all of which occurs after the commencement of this Act; and

                     (b)  a levy is also payable under subsection 902(2) of this Act in respect of the securities exchange and the year;

the payment they made or make as mentioned in subparagraph (a)(i) or (ii) is taken to satisfy their liability to pay the levy referred to in paragraph (b).

             (3)  If, before the commencement, a person paid an amount to a securities exchange as required by subsection 902(2) of the old Corporations Law of a State or Territory, that payment is to be counted, for the purposes of:

                     (a)  the reference in paragraph (a) of the definition of relevant person in subsection 903(1) of this Act; and

                     (b)  subsection 903(5) of this Act;

as if it were a payment of a kind referred to in that paragraph or that subsection, as the case requires.

1395  Transitional provisions relating to National Guarantee Fund levies

             (1)  If:

                     (a)  either:

                              (i)  before the commencement, a person paid an amount as required by section 938 of the old Corporations Law of a State or Territory in respect of a particular transaction; or

                             (ii)  after the commencement, a person pays an amount of levy imposed by subsection 6(1) of the Corporations (National Guarantee Fund Levies) Act 2001 in respect of a particular transaction; and

                     (b)  a levy is also payable under section 938 of this Act in respect of the same transaction;

the payment they made or make as mentioned in subparagraph (a)(i) or (ii) is taken to satisfy their liability to pay the levy referred to in paragraph (b).

             (2)  Subject to subsection (3), a determination of a matter (other than a rate or rates, or an amount) in force immediately before the commencement for the purposes of section 938, 940 or 941 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 section 938—a determination for the purposes of section 938 of this Act; or

                     (b)  in the case of a determination for the purposes of section 940—a determination for the purposes of section 940 of this Act; or

                     (c)  in the case of a determination for the purposes of section 941—a determination for the purposes of section 941 of this Act.

             (3)  Nothing in subsection (2) is taken to produce a result that a levy is payable by a person in respect of the same matter in respect of which levy is imposed on the person by subsection 6(1), (2) or (3) of the Corporations (National Guarantee Fund Levies) Act 2001.

1396  Transitional provisions relating to futures organisation fidelity fund levies

             (1)  If:

                     (a)  before the commencement, a person paid an amount as required by subsection 1234(1) of the old Corporations Law of a State or Territory in order to be admitted to membership of a futures organisation; and

                     (b)  that person had not been so admitted by the commencement of this Act;

the payment they made before the commencement is taken to satisfy their liability to pay the levy referred to in subsection 1234(1) of this Act in respect of their admission after the commencement to that futures organisation.

             (2)  If:

                     (a)  either:

                              (i)  before the commencement, a contributing member of a futures organisation paid an amount as required by subsection 1234(2) of the old Corporations Law of a State or Territory to a futures organisation in respect of a year some or all of which occurs after the commencement of this Act; or

                             (ii)  after the commencement, a person pays an amount as required by subsection 6(1) of the Corporations (Futures Organisations Levies) Act 2001 in respect of a year some or all of which occurs after the commencement of this Act; and

                     (b)  a levy is also payable under subsection 1234(2) of this Act in respect of the futures organisation and the year;

the payment they made or make as mentioned in subparagraph (a)(i) or (ii) is taken to satisfy their liability to pay the levy referred to in paragraph (b).

Division 6General transitional provisions relating to other things done etc. under the old corporations legislation

1397  Limitations on scope of this Division

             (1)  This Division has effect subject to:

                     (a)  the provisions of Divisions 2, 3, 4 and 5 (which deal with matters in more specific terms); and

                     (b)  regulations made for the purposes of Division 7.

             (2)  Nothing in this Division applies to:

                     (a)  an order made by a court before the commencement; or

                     (b)  a right or liability under an order made by a court before the commencement; or

                     (c)  a right to:

                              (i)  appeal to a court against an order made by a court before the commencement;

                             (ii)  apply to a court for review of such an order; or

                            (iii)  bring an appeal or review proceeding, or an enforcement proceeding, within the meaning of section 1382, in respect of such an order; or

                     (d)  subject to subsection (3)—a proceeding taken (including an appeal, review or enforcement proceeding) in a court before the commencement, or a step in such a proceeding.

Note:          Division 4 deals with court orders and proceedings made or begun before the commencement, and with related matters.

             (3)  Despite paragraph (2)(d), sections 1400 and 1401 apply to any right or liability to which a proceeding to which section 1383 or 1384 applies relates.

             (4)  Nothing in this Division applies to a liability under section 902, 904, 938, 940, 941, 1234, 1235 or 1351 of the old Corporations Law of a State or Territory in this jurisdiction to pay a contribution, levy or fee.

Note:          These liabilities are preserved as taxes by provisions of the following Acts:

(a)    the Corporations (Securities Exchanges Levies) Act 2001;

(b)    the Corporations (National Guarantee Fund Levies) Act 2001;

(c)    the Corporations (Futures Organisations Levies) Act 2001;

(d)    the Corporations (Fees) Act 2001.

             (5)  Except as mentioned in subsections (1) to (4), nothing in Division 2, 3, 4 or 5, or in regulations made for the purposes of Division 7, is intended to limit the generality of the provisions in this Division.

1398  Provisions of this Division may have an overlapping effect

                   The provisions of this Division deal at a broad level with concepts and matters in a way that is intended to achieve the object of this Part as set out in section 1370. Some of the provisions of this Division will (depending on the situation) have an effect that overlaps or interacts to some extent with the effect of other provisions of this Division. This is intended, and the provisions of this Division should be not be regarded as dealing with mutually exclusive situations.

1399  Things done by etc. carried over provisions continue to have effect

             (1)  Subject to this section, a thing that:

                     (a)  was done before the commencement by, under, or for the purposes of, a carried over provision of the old corporations legislation of a State or Territory in this jurisdiction; and

                     (b)  had an ongoing significance (see subsections (4) and (5)) immediately before the commencement for the purposes of that legislation;

has effect (and may be dealt with) after the commencement, for the purposes of the new corporations legislation, as if it were done by, under, or for the purposes of, the corresponding provision of the new corporations legislation.

Note:          This section covers all kinds of things done, including things of a coercive nature or done for coercive purposes.

             (2)  Examples of things done include:

                     (a)  the making of an instrument or order (but not including the making of an order by a court); and

                     (b)  the making of an application or claim (but not including the making of an application or claim to a court); and

                     (c)  the granting of an application or claim (but not including the granting of an application or claim by a court); and

                     (d)  the making of an appointment or delegation; and

                     (e)  the commencement of a procedure or the taking of a step in a procedure (but not including the commencement of a proceeding in a court); and

                      (f)  the establishment of a register or fund; and

                     (g)  requiring a person to do, or not to do, something (but not including a requirement contained in an order made by a court); and

                     (h)  the giving of a notice or document.

             (3)  The examples in subsection (2) are not intended to limit the generality of the language of subsection (1).

             (4)  Subject to subsection (5), for the purposes of this section, a thing done by, under, or for the purposes of, a carried over provision of the old corporations legislation of a State or Territory had an ongoing significance immediately before the commencement for the purposes of that legislation if:

                     (a)  if the thing done was the making of an instrument or order—the instrument or order was still in force immediately before the commencement; or

                     (b)  if the thing done was the making of an application or claim—the application or claim had not been decided, and had not otherwise ceased to have effect, before the commencement; or

                     (c)  if the thing done was the granting of an application or claim—the thing granted had not been revoked, and had not otherwise ceased to have effect, before the commencement; or

                     (d)  if the thing done was the making of an appointment or delegation—the appointment or delegation had not been revoked, and had not otherwise ceased to have effect, before the commencement; or

                     (e)  if the thing done was the commencement of a procedure or the taking of a step in a procedure—the procedure was still in progress immediately before the commencement or was otherwise still having an effect; or

                      (f)  if the thing done was the establishment of a register or fund—the register or fund was still in existence immediately before the commencement; or

                     (g)  if the thing done was requiring a person to do, or not to do something—the requirement was still in force immediately before the commencement; or

                     (h)  if the thing done was the giving of a notice or document, or the doing of some other thing—the notice or document (or the giving of the notice or document), or the thing (or the doing of the thing), had an ongoing effect or significance immediately before the commencement for the purposes of the old corporations legislation of the State or Territory.

             (5)  The regulations may provide that a specified thing done under, or for the purposes of, a carried over provision of the old corporations legislation of a State or Territory did, or did not, have an ongoing significance immediately before the commencement for the purposes of that legislation.

1400  Creation of equivalent rights and liabilities to those that existed before the commencement under carried over provisions of the old corporations legislation

             (1)  Subject to subsection (4), this section applies in relation to a right or liability (the pre‑commencement right or liability), whether civil or criminal, that:

                     (a)  was:

                              (i)  acquired, accrued or incurred under a carried over provision of the old corporations legislation of a State or Territory in this jurisdiction; and

                             (ii)  in existence immediately before the commencement; or

                     (b)  would have been:

                              (i)  acquired, accrued or incurred under such a provision; and

                             (ii)  in existence immediately before the commencement;

                            if every agreement that was valid only because of section 249 of the ASIC Act had been a valid agreement without the application of that section.

However, this section does not apply to a right or liability under an order made by a court before the commencement.

             (2)  On the commencement, the person acquires, accrues or incurs a right or liability (the substituted right or liability), equivalent to the pre‑commencement right or liability, under the corresponding provision of the new corporations legislation (as if that provision applied to the conduct or circumstances that gave rise to the pre‑commencement right or liability).

Note:          If a time limit applied in relation to the pre‑commencement right or liability under the old corporations legislation, that same time limit (calculated from the same starting point) will apply under the new corporations legislation to the substituted right or liability—see subsection 1402(3).

             (3)  A procedure, proceeding or remedy in respect of the substituted right or liability may be instituted after the commencement under the new corporations legislation (as if that provision applied to the conduct or circumstances that gave rise to the pre‑commencement right or liability).

Note:          For pre‑commencement proceedings in respect of substituted rights and liabilities, see sections 1383 and 1384.

             (4)  If, immediately before the commencement, a person had an accrued right to make a claim under a provision of Part 7.10 of the old Corporations Law of a State that is not a referring State (and so is not in this jurisdiction), this section applies in relation to that right in the same way as it would have applied if the State had been a referring State.

Note:          Except to the extent provided in this subsection, this Part does not create rights and liabilities that are equivalent to those that existed under the old corporations legislation of a non‑referring State.

             (5)  This section does not apply to a pre‑commencement right or liability that:

                     (a)  existed under a law of the Commonwealth or of a State or Territory; and

                     (b)  would not have existed if any agreement that is valid only because of section 249 of the ASIC Act had been a valid agreement without the application of that section.

             (6)  Paragraph (1)(b) and subsection (5) have effect in relation to:

                     (a)  proceedings (whether original or appellate) that begin on or after the day the Treasury Laws Amendment (2017 Measures No. 3) Act 2017 receives the Royal Assent; and

                     (b)  proceedings that began before that day, if the proceedings (including any appeals) had not been finally determined as at that day.

             (7)  Nothing in paragraph (1)(b) or subsection (5) or (6) limits the operation of section 249 of the ASIC Act.

1401  Creation of equivalent rights and liabilities to those that existed before the commencement under repealed provisions of the old corporations legislation

             (1)  This section applies in relation to a right or liability (the pre‑commencement right or liability), whether civil or criminal, that:

                     (a)  was:

                              (i)  acquired, accrued or incurred under a provision of the old corporations legislation of a State or Territory in this jurisdiction that was no longer in force immediately before the commencement; and

                             (ii)  in existence immediately before the commencement; or

                     (b)  would have been:

                              (i)  acquired, accrued or incurred under such a provision; and

                             (ii)  in existence immediately before the commencement;

                            if every agreement that was valid only because of section 249 of the ASIC Act had been a valid agreement without the application of that section.

However, this section does not apply to a right or liability under an order made by a court before the commencement.

             (2)  For the purposes of subsections (3) and (4), the new corporations legislation is taken to include:

                     (a)  the provision of the old corporations legislation (with such modifications (if any) as are necessary) under which the pre‑commencement right or liability was acquired, accrued or incurred; and

                     (b)  the other provisions of the old corporations legislation (with such modifications (if any) as are necessary) that applied in relation to the pre‑commencement right or liability.

             (3)  On the commencement, the person acquires, accrues or incurs a right or liability (the substituted right or liability), equivalent to the pre‑commencement right or liability, under the provision taken to be included in the new corporations legislation by paragraph (2)(a) (as if that provision applied to the conduct or circumstances that gave rise to the pre‑commencement right or liability).

Note:          If a time limit applied in relation to the pre‑commencement right or liability under the old corporations legislation, that same time limit (calculated from the same starting point) will apply under the new corporations legislation to the substituted right or liability—see subsection 1402(3).

             (4)  A procedure, proceeding or remedy in respect of the substituted right or liability may be instituted after the commencement under the provisions taken to be included in the new corporations legislation by subsection (2) (as if those provisions applied to the conduct or circumstances that gave rise to the pre‑commencement right or liability).

Note:          For pre‑commencement proceedings in respect of substituted rights and liabilities, see sections 1383 and 1384.

             (5)  This section does not apply to a pre‑commencement right or liability that:

                     (a)  existed under a law of the Commonwealth or of a State or Territory; and

                     (b)  would not have existed if any agreement that is valid only because of section 249 of the ASIC Act had been a valid agreement without the application of that section.

             (6)  Paragraph (1)(b) and subsection (5) have effect in relation to:

                     (a)  proceedings (whether original or appellate) that begin on or after the day the Treasury Laws Amendment (2017 Measures No. 3) Act 2017 receives the Royal Assent; and

                     (b)  proceedings that began before that day, if the proceedings (including any appeals) had not been finally determined as at that day.

             (7)  Nothing in paragraph (1)(b) or subsection (5) or (6) limits the operation of section 249 of the ASIC Act.

1402  Old corporations legislation time limits etc.

             (1)  An old corporations legislation time limit (see subsection (4)):

                     (a)  the starting point of which:

                              (i)  was known or had been determined before the commencement (whether that starting point occurred or would occur before, on or after the commencement); or

                             (ii)  would have become known, or have been determined, after the commencement if the old corporations legislation of the relevant State or Territory had continued to apply (whether that starting point would have occurred before, on or after the commencement); and

                     (b)  that had not ended at or before the commencement;

continues to run, or starts or started to run, as if that same time limit (starting from the same starting point) were applicable under the new corporations legislation.

             (2)  If:

                     (a)  under the old corporations legislation, a process (for example, the winding up of a company), a status of a person or body (for example, a body’s registration as a company or a person’s status as a registered liquidator), or an instrument, commenced from a particular time before the commencement; and

                     (b)  that process, status or instrument is continued after the commencement for the purposes of the new corporations legislation by a provision of this Part;

that process, status or instrument as so continued is still taken to have commenced from the time referred to in paragraph (a).

             (3)  If an old corporations legislation time limit related to a pre‑commencement right or liability, the same time limit applies in relation to the substituted right or liability.

             (4)  In this section:

old corporations legislation time limit includes:

                     (a)  a period for the doing of a thing specified or determined under a provision of the old corporations legislation of a State or Territory; or

                     (b)  a period specified or determined under a provision of the old corporations legislation of a State or Territory as the duration of a particular instrument or status.

1403  Preservation of significance etc. of events or circumstances

             (1)  An event, circumstance or other thing:

                     (a)  that occurred or arose before the commencement under or as mentioned in a provision of the old corporations legislation of a State or Territory in this jurisdiction; and

                     (b)  that had a particular significance, status or effect for the purposes of a carried over provision of that legislation (including because of an interpretive provision);

has that same significance, status and effect after the commencement for the purposes of the provision of the new corporations legislation that corresponds to that carried over provision.

Note:          So, for example:

(a)    if a company took action before the commencement that had the result for the purposes of section 200B of the old Corporations Law of making a superannuation fund a prescribed superannuation fund in relation to the company, that action has that same effect for the purposes of section 200B of this Act; and

(b)    a delay that could have been taken into account for the purposes of subsection 874(1) of the old Corporations Law also counts for the purposes of subsection 874(1) of this Act.

             (2)  Without limiting subsection (1), an event, circumstance or other thing had a particular significance for the purposes of a carried over provision of the old corporations legislation of a State or Territory in this jurisdiction if:

                     (a)  the carried over provision created an obligation in respect of the event, circumstance or thing (whenever it arose); or

                     (b)  the carried over provision provided for the event, circumstance or thing to be dealt with in a particular way; or

                     (c)  the carried over provision stated that the event, circumstance or thing (whenever it arose) was to be disregarded for the purposes of that provision or was not covered by that provision.

1404  References in the new corporations legislation generally include references to events, circumstances or things that happened or arose before the commencement

             (1)  Subject to this section, a reference in the new corporations legislation to an event, circumstance or thing of a particular kind that happens or arises, or that has happened or arisen, is taken to include a reference to an event, circumstance or thing of that kind that happened or arose at a time before the commencement, unless a contrary intention is expressed. The fact that the provision uses only the present tense in referring to an event, circumstance or thing is not, of itself, to be regarded as an expression of a contrary intention.

Note:          So, for example, if a provision of the new corporations legislation refers to a person who consents to a course of action, that reference (in the absence of an express provision to the contrary) will not be limited to consents given after the commencement and will cover a consent given before the commencement.

             (2)  Nothing in subsection (1) is taken to produce a result that a right or liability exists under a provision of the new corporations legislation that relates solely to events, circumstances or things that occurred before the commencement.

Note:          Instead, an equivalent right or liability will be created by section 1400 or 1401.

             (3)  The regulations may provide that subsection (1) does not apply in relation to a particular reference or class of references in the new corporations legislation.

1405  References in the new corporations legislation to that legislation or the new ASIC legislation generally include references to corresponding provisions of the old corporations legislation or old ASIC legislation

             (1)  Subject to subsection (4), a reference in the new corporations legislation to:

                     (a)  an Act, or regulations or another instrument that is part of the new corporations legislation; or

                     (b)  a provision or group of provisions of such an Act, regulations or other instrument;

is taken, in relation to events, circumstances or things that happened or arose at a time before the commencement when the old corporations legislation was in force, to include (in the absence of an express provision to the contrary) a reference to the corresponding part, provision or provisions of the old corporations legislation of the States and Territories in this jurisdiction.

             (2)  Subject to subsection (4), a reference in the new corporations legislation to:

                     (a)  an Act, or regulations or some other instrument that is part of the new ASIC legislation; or

                     (b)  a provision or group of provisions of such an Act, regulations or other instrument;

is taken, in relation to events, circumstances or things that happened or arose at a time before the commencement when the old corporations legislation was in force, to include (in the absence of an express provision to the contrary) a reference to the corresponding part, provision or provisions of the old ASIC legislation of the Commonwealth, of the States in this jurisdiction and of the Northern Territory.

             (3)  In subsection (2):

                     (a)  new ASIC legislation and old ASIC legislation have the same meanings as they have in Part 16 of the Australian Securities and Investments Commission Act 2001; and

                     (b)  the question whether a provision or part of the old ASIC legislation corresponds to a provision of part of the new ASIC legislation is to be determined in the same way as it is determined for the purposes of Part 16 of the Australian Securities and Investments Commission Act 2001.

             (4)  The regulations may provide that subsection (1) or (2) does not apply in relation to a particular reference or class of references in the new corporations legislation.

1406  Carrying over references to corresponding previous laws

             (1)  If a carried over provision of the old corporations legislation of a State or Territory in this jurisdiction contained a reference (whether in its own terms or by operation of another provision) to:

                     (a)  a corresponding previous law (as defined for the purposes of that provision or provisions including that provision); or

                     (b)  a thing done by, under, or for the purposes of, such a law;

the corresponding provision of the new corporations legislation is taken to contain an equivalent reference to that previous law, or to such a thing done by, under, or for the purposes of, that previous law.

             (2)  The following references in the old corporations legislation of the States and Territories in this jurisdiction are covered by subsection (1) in the same way as they would be if they used the “corresponding previous law” form of words:

                     (a)  the reference in subsection 1274AA(1) to a “previous Law”;

                     (b)  the reference in subparagraph 1274AA(2)(b)(ii) to a “previous law of this jurisdiction before the commencement of this Part that corresponds”;

                     (c)  any other references prescribed by the regulations for the purposes of this subsection.

1407  References to old corporations legislation in instruments

             (1)  Subject to subsection (2), a reference in, or taken immediately before the commencement to be in, an instrument, other than:

                     (a)  an Act of a State, the Australian Capital Territory, the Northern Territory or Norfolk Island; or

                     (b)  an instrument made under such an Act;

to:

                     (c)  an Act, or to regulations or some other instrument, that is part of the old corporations legislation (whether the reference is in general terms or in relation to a particular State or Territory in this jurisdiction); or

                     (d)  to a provision or group of provisions of such an Act, regulations or other instrument;

is taken, after the commencement, to include a reference to the corresponding part, provision or provisions of the new corporations legislation (unless there is no such corresponding part, provision or provisions).

Note:          This section will, for example, apply to:

(a)    a reference in another Commonwealth Act to the Corporations Law; or

(b)    a reference in the Corporations Regulations to the Corporations Law; or

(c)    a reference in a company’s constitution to a particular provision of the Corporations Law.

             (2)  The regulations may do either or both of the following:

                     (a)  provide that subsection (1) does not apply in relation to prescribed references in prescribed instruments;

                     (b)  provide that subsection (1) has effect in relation to prescribed references in prescribed instruments as if, in that subsection, the words “to be” were substituted for the words “to include”.

1408  Old transitional provisions continue to have their effect

             (1)  Subject to subsection (3), this Act has the same effect, after the commencement, as it would have if:

                     (a)  the transitional provisions (see subsections (6) and (7)) of the old Corporations Laws of the States and Territories in this jurisdiction (as in force from time to time before the commencement) had been part of this Act; and

                     (b)  those transitional provisions produced the same results or effects (to the greatest extent possible) for the purposes of this Act as they produced for the purposes of those old Corporations Laws.

             (2)  Without limiting subsection (1) (but subject to subsection (3)), if a transitional provision of the old Corporations Law of a State or Territory in this jurisdiction could, if it had continued in force after the commencement, have operated to give rise to rights and liabilities (including civil or criminal liabilities) in relation to acts or omissions occurring after the commencement, this Act is taken to include that transitional provision (with such modifications (if any) as are necessary.

Note:          In relation to acts or omissions that occurred before the commencement, equivalent rights and liabilities are created by sections 1400 and 1401.

             (3)  The regulations may determine how a matter dealt with in a transitional provision of the old Corporations Law of a State or Territory in this jurisdiction is to be dealt with under or in relation to the new corporations legislation (including by creating offences). The regulations have effect despite subsections (1) and (2), but subject to subsection (5).

Note:          In creating offences, the regulations are subject to the limitation imposed by section 1375.

             (4)  For the purpose of determining whether the new corporations legislation includes a provision that corresponds to a provision of the old corporations legislation of a State or Territory, and for the purpose of any reference in this part to a corresponding provision of the new corporations legislation, this Act is taken to include the transitional provisions of the old corporations legislation of the States and Territories, as they have effect because of subsections (1) and (2).

             (5)  Nothing in subsection (1) or (2), or in regulations made for the purposes of subsection (3), is taken to produce a result that a right or liability exists under a transitional provision as it has effect because of subsection (1) or (2), or exists under regulations made for the purposes of subsection (3), that relates solely to events, circumstances or things that occurred before the commencement.

Note:          Instead, an equivalent right or liability will be created by section 1400 or 1401.

             (6)  Subject to subsection (7), for the purposes of this section, a transitional provision is any of the provisions of the old Corporations Laws of the States and Territories in this jurisdiction listed in the following table.

 

Transitional provisions of old Corporations Law

Item

Provisions

1

subsection 87(1A)

2

subsection 88(1A)

3

sections 109E to 109G and section 109T

4

section 268A

5

section 275

6

section 275A

7

Subsections 319(4), (5) and (6)

8

section 601

9

subsection 774(7)

10

subsection 895(3)

11

subsection 977(4)

12

subsection 990(2)

13

section 993

14

subsection 1228(3)

15

subsections 1274(17) and (18)

16

subsections 1288(1), (2) and (6)

17

paragraph 1311(1A)(f) and subsection 1311(3A)

18

section 1336A

19

Chapter 11, other than section 1416

20

Schedule 4, other than the following provisions:

(a) subclauses 7(3), 8(2) and 9(4);

(b) clauses 11 to 16;

(c) subclause 17(2);

(d) clauses 18 and 19;

(e) clauses 20, 25 and 27;

(f) Parts 5, 6 and 7.

             (7)  The regulations may provide that certain provisions are to be taken to be included in, or omitted from, the table in subsection (6). The table then has effect as if the provisions were so included in it or omitted from it.

Division 7Regulations dealing with transitional matters

1409  Regulations may deal with transitional matters

             (1)  The regulations may deal with matters of a transitional nature relating to the transition from the application of provisions of the old corporations legislation of the States and Territories in this jurisdiction to the application of provisions of the new corporations legislation. The regulations have effect despite anything else in this Part, other than section 1375.

             (2)  Without limiting subsection (1), the regulations may provide for a matter to be dealt with, wholly or partly, in any of the following ways:

                     (a)  by applying (with or without modifications) to the matter:

                              (i)  provisions of the old corporations legislation of the States and Territories in this jurisdiction, as in force immediately before the commencement or at some earlier time; or

                             (ii)  provisions of the new corporations legislation; or

                            (iii)  a combination of provisions referred to in subparagraphs (i) and (ii);

                     (b)  by otherwise specifying rules for dealing with the matter;

                     (c)  by specifying a particular consequence of the matter, or of an outcome of the matter, for the purposes of the new corporations legislation.

             (3)  The regulations may provide that certain provisions of this Part are taken to be modified as set out in the regulations. Those provisions then have effect as if they were so modified.

             (4)  Despite subsection 12(2) of the Legislative Instruments Act 2003, regulations for the purposes of this section may be expressed to take effect from a date before the regulations are registered under that Act.

             (5)  In this section:

matters of a transitional nature also includes matters of an application or saving nature.

Part 10.2Transitional provisions relating to the Financial Services Reform Act 2001

Division 1Transitional provisions relating to the phasing‑in of the new financial services regime

Subdivision APreliminary

1410  Definitions

             (1)  In this Division, unless the contrary intention appears:

amended Corporations Act means this Act as in force after the FSR commencement.

associated provisions, in relation to provisions (the core provisions) of a particular Act as in force at a particular time, include (but are not limited to):

                     (a)  any regulations or other instruments that are or were in force for the purposes of any of the core provisions at that time; and

                     (b)  any interpretation provisions that apply or applied in relation to any of the core provisions at that time (whether or not they also apply or applied for other purposes); and

                     (c)  any provisions relating to liability (civil or criminal) that apply or applied in relation to any of the core provisions at that time (whether or not they also apply or applied for other purposes); and

                     (d)  any provisions that limit or limited, or that otherwise affect or affected, the operation of any of the core provisions at that time (whether or not they also limit or limited, or affect or affected, the operation of other provisions).

class, in relation to financial products, has a meaning affected by regulations made for the purposes of subsection (2).

FSR commencement means the commencement of item 1 of Schedule 1 to the Financial Services Reform Act 2001.

old Corporations Act means this Act as in force immediately before the FSR commencement.

regulated activities, in relation to a regulated principal, has the meaning given by section 1430.

regulated principal has the meaning given by section 1430.

relevant old legislation, in relation to a regulated principal, has the meaning given by section 1430.

transition period:

                     (a)  in relation to a market to which section 1414, 1418, 1420, 1421 or 1422 applies—has the meaning given by subsection (2) of that section; and

                     (b)  in relation to a market to which section 1417 applies and the additional products referred to in that section—has the meaning given by subsection 1417(2); and

                     (c)  in relation to a clearing and settlement facility to which section 1426 or 1429 applies—has the meaning given by subsection (2) of that section; and

                     (d)  in relation to a clearing and settlement facility to which section 1428 applies and the additional products referred to in that section—has the meaning given by subsection 1428(2); and

                     (e)  in relation to a regulated principal—has the meaning given by subsection 1431(1); and

                      (f)  in relation to a financial product to which section 1438 applies—has the meaning given by subsection (3) of that section.

          (1A)  Other expressions used in this Part that are defined in Division 2 of Part 7.1 have the same meanings as they are given by that Division. This has effect subject to:

                     (a)  any contrary intention in a provision of this Part; or

                     (b)  regulations made for the purposes of this paragraph.

             (2)  The regulations may include provisions identifying, or providing for the identification of, what constitutes a class of financial products for the purposes of a provision or provisions of this Division.

             (3)  If a provision of this Division (the transitional provision) provides for a provision of this or another Act (the preserved provision), as in force immediately before the FSR commencement, to continue to apply to or in relation to a person, thing or matter:

                     (a)  the preserved provision so continues to apply only to the extent (if any) to which it is expressed in terms that cover the person, thing or matter; and

                     (b)  the transitional provision is not taken to extend the scope of the preserved provision (otherwise than by giving it a continued operation).

Subdivision BTreatment of existing markets

1411  When is a market being operated immediately before the FSR commencement?

                   Subject to section 1412, in this Subdivision, a reference to a market being operated immediately before the FSR commencement is a reference to a market that had not permanently ceased to operate before the FSR commencement, even if trading on the market was not actually occurring immediately before the FSR commencement (for example, because of a routine temporary closure of the market).

1412  Treatment of proposed markets that have not started to operate by the FSR commencement

             (1)  This section applies in relation to the following proposed markets, other than any such market that starts to operate before the FSR commencement:

                     (a)  a market proposed to be operated by Bendigo Stock Exchange Ltd, or by ASX Futures Exchange Pty Limited, that is identified in writing by the Minister as being a proposed market to which this section applies;

                     (b)  any other proposed market identified in, or in accordance with, regulations made for the purposes of this paragraph.

For this purpose, a proposed market is a market that a person has, before the FSR commencement, indicated an intention that they propose to operate.

             (2)  This Subdivision applies in relation to a proposed market to which this section applies subject to the following paragraphs:

                     (a)  subject to paragraphs (b), (c) and (d), this Subdivision applies in relation to the proposed market as if the market, as proposed to be operated, were in fact being operated immediately before the FSR commencement;

                     (b)  if, taking account of the effect of paragraph (a), section 1413 applies in relation to the proposed market, that section applies in relation to the proposed market:

                              (i)  as if the Minister’s obligation to grant a licence, and impose conditions, under subsection 1413(2) in relation to the market does not arise unless and until the market operator lodges with ASIC a notice in relation to the market under subsection (3) of this section, and does not arise at all if no such notice is given to ASIC by the end of 6 months after the FSR commencement; and

                             (ii)  as if subsection 1413(3) provided for a licence so granted under subsection 1413(2) in relation to the market, and the conditions subject to which it is granted, to be taken to have had effect from the day (the start day) specified in the subsection (3) notice as the day on which the market started to operate; and

                            (iii)  as if subsection 1413(6) were omitted; and

                            (iv)  as if the references in subsection 1413(8) to the FSR commencement were instead references to the start day;

                     (c)  if:

                              (i)  taking account of the effect of paragraph (a), section 1418, 1420, 1421 or 1422 applies to the proposed market; and

                             (ii)  the market operator does not lodge with ASIC a notice in relation to the market under subsection (3) of this section by the end of 6 months after the FSR commencement;

                            that section ceases to apply in relation to the proposed market at the end of that period;

                     (d)  if a provision of this Subdivision provides for a provision of the old Corporations Act to continue to apply in relation to the proposed market, then (without limiting the generality of subsection 1410(3)), while the proposed market remains non‑operational, the provision of the old Corporations Act only applies in relation to the proposed market to the extent (if any) to which it would, disregarding the effect of paragraph (a), apply in relation to the proposed market.

             (3)  If a proposed market to which this section applies starts to operate on a day during the period of 6 months starting on the FSR commencement, the operator must, as soon as practicable, and in any event within 7 days, lodge with ASIC written notice of the fact that the market started to operate on that day.

Note:          Failure to comply with this subsection is an offence (see subsection 1311(1)).

             (4)  ASIC must, within a reasonable time, give the Minister a notice it receives under subsection (3).

1413  Obligation of Minister to grant licences covering main existing markets

             (1)  This section applies to each market being operated immediately before the FSR commencement in relation to which any of the following paragraphs applies:

                     (a)  the market was a stock market operated by the Australian Stock Exchange Limited;

                     (b)  the market was a stock market operated by a body corporate covered by an approval in force under subsection 769(2) of the old Corporations Act;

                     (c)  the market was a futures market operated by a body corporate covered by an approval in force under subsection 1126(2) of the old Corporations Act.

             (2)  Subject to subsections (3) and (4), the Minister must, in relation to each market to which this section applies, grant the operator of the market a licence, and impose conditions on that licence, in accordance with the following requirements:

                     (a)  the licence must be described as an Australian market licence;

                     (b)  the licence must be granted subject to the following conditions:

                              (i)  a condition specifying the market as the market that the licence authorises the licensee to operate;

                             (ii)  a condition specifying, as the classes of financial products that can be dealt with on the market, the classes that are appropriate for the market under subsection (5);

                            (iii)  if the Minister considers that the licensee should have clearing and settlement arrangements for transactions effected through the market—a condition specifying the type of clearing and settlement arrangements that are adequate.

             (3)  Subject to subsection (6), a licence that subsection (2) requires to be granted must be granted on, or as soon as practicable after, the FSR commencement. If it is granted after the FSR commencement, it, and the conditions subject to which it is granted, are taken to have had effect from that commencement.

             (4)  Sections 795D (more than one licence in the same document) and 795E (more than one market covered by the same licence) of the amended Corporations Act apply in relation to the granting of licences, and licences granted, under this section as if the licences were, or were being, granted under section 795B of that Act. If, pursuant to section 795E, a single licence is granted under this section in respect of several separate markets, paragraph (2)(b) of this section must be complied with separately in the licence document in relation to each of those markets.

             (5)  For the purposes of subparagraph (2)(b)(ii), the classes of financial products that are appropriate for a market to which this section applies are as follows:

                     (a)  for a market described in paragraph (1)(a) or (b)—securities, within the meaning of section 92 of the old Corporations Act as applying for the purposes of Part 7.2 of the old Corporations Act, and agreements of a kind to which section 92A of the old Corporations Act applied immediately before the FSR commencement (or would have applied after the FSR commencement if that section, and any associated provisions, had continued to have effect);

                     (b)  for a market described in paragraph (1)(c)—futures contracts, within the meaning of section 72 of the old Corporations Act, and agreements of a kind to which section 72A of the old Corporations Act applied immediately before the FSR commencement (or would have applied after the FSR commencement if that section, and any associated provisions, had continued to have effect).

             (6)  Despite anything in subsection (3), the Minister may, under this section, grant a licence, and impose conditions on the licence, at any time during the period starting on the commencement of this section and ending on the FSR commencement on the basis that matters known to the Minister in relation to the market concerned will continue to be the case up to the FSR commencement. If the Minister does so:

                     (a)  the licence and conditions come into effect on the FSR commencement, and not before; and

                     (b)  the Minister may vary or revoke the licence, or any of the conditions, before the FSR commencement if the Minister considers it appropriate to do so having regard to the provisions of this section concerning the granting of licences and the imposition of conditions; and

                     (c)  the licence and conditions do not come into effect on the FSR commencement if, immediately before the FSR commencement, the market is not a market to which this section applies.

             (7)  If the Minister grants a licence under this section, the Minister must give the operator of the market written notice of:

                     (a)  the grant of the licence, and the conditions imposed on the licence; and

                     (b)  any subsequent revocation or variation under subsection (6) of the licence or conditions.

             (8)  A notice advising of the grant of a licence under this section must contain a statement to the effect that the licence and conditions will not take effect until the FSR commencement, or will be taken to have had effect from the FSR commencement, as the case requires.

1414  Section 1413 markets—effect of licences and conditions

             (1)  Subject to subsections (2) to (4):

                     (a)  a licence granted under section 1413 that authorises the operation of a market is, for the purposes of the amended Corporations Act (other than this section), taken to have been granted (and to have been properly granted) under section 795B of the amended Corporations Act; and

                     (b)  conditions imposed under section 1413 on the licence are, for the purposes of the amended Corporations Act (other than this section), taken to have been imposed (and to have been properly imposed) under section 796A of the amended Corporations Act.

Note 1:       Section 795C of the amended Corporations Act (publication of notice of licence grant) applies to the grant of the licence.

Note 2:       The conditions may be varied or revoked, and additional conditions may be imposed, under section 796A of the amended Corporations Act.

             (2)  Subject to subsection (4), the relevant new legislation (see subsection (6)) does not apply in relation to the market during the period (the transition period) starting on the FSR commencement and ending on whichever of the following first occurs:

                     (a)  the end of the period of 2 years starting on the FSR commencement;

                     (b)  conditions on the licence are varied or revoked, or additional conditions are imposed on the licence, pursuant to an application by the licensee under subsection 796A(2) of the amended Corporations Act;

                     (c)  the licensee has lodged with ASIC notice in writing that it wants to take advantage of the compensation arrangements under Division 3 of Part 7.5 of the amended Corporations Act:

                              (i)  from a specified date, being a date that is after the notice is given to ASIC and that is after compensation arrangements for the market have been approved under Division 3 of Part 7.5 of the amended Corporations Act (see also subsection (4)); or

                             (ii)  from the end of a specified period, being a period that is described as starting when compensation arrangements for the market are approved under Division 3 of Part 7.5 of the amended Corporations Act (see also subsection (4)) and that ends after the notice is given to ASIC;

                            and that date arrives or period ends.

             (3)  A notice (the original notice) given for the purposes of paragraph (2)(c) may, before the date, or the end of the period, specified in the original notice as mentioned in that paragraph:

                     (a)  be varied to specify another date or period, being a date or period that would satisfy the requirements of subparagraph (2)(c)(i) or (ii) if the reference in that subparagraph to when the notice (being the original notice) is given to ASIC were instead a reference to when the notice of variation is given to ASIC under this subsection; or

                     (b)  be revoked.

The variation or revocation must be made by notice in writing lodged with ASIC.

             (4)  If the relevant new legislation in relation to a market includes Part 7.5 of the amended Corporations Act, then, despite subsection (2), Division 3 of that Part applies to the market during the transition period to the extent necessary for the operator to apply to have compensation arrangements for the market approved before the end of the transition period, and for that application to be determined. However, any approval of the arrangements under that Division does not take effect until immediately after the end of the transition period.

             (5)  The annual report of the licensee (see section 792F of the amended Corporations Act) for a financial year in which part of the transition period occurs, other than a financial year in which the transition period ends, must include information about:

                     (a)  the steps taken in the year; and

                     (b)  the steps proposed to be taken in the next year;

to ensure that the relevant new legislation will be complied with by the time the transition period ends.

             (6)  In this section:

relevant new legislation, in relation to a market, means:

                     (a)  section 793A of the amended Corporations Act; and

                     (b)  unless the market is a market to which Division 4 of Part 7.5 of the amended Corporations Act applies—Part 7.5 of the amended Corporations Act.

1415  Section 1413 markets—preservation of old Corporations Act provisions during transition period

Preservation of compensation regimes

             (1)  If, during the transition period in relation to a market the operation of which is authorised by a licence granted under section 1413, Part 7.5 of the amended Corporations Act does not apply in relation to the market (except as provided in subsection 1414(4)) because of subsection 1414(2), Part 7.9, or Part 8.6, as the case requires, of the old Corporations Act, and any associated provisions, continue to apply in relation to the market during the transition period.

Preservation of certain ongoing requirements

             (2)  During the transition period in relation to a market:

                     (a)  the operation of which is authorised by a licence granted under section 1413; and

                     (b)  that, immediately before the FSR commencement, was a securities exchange to which section 769A of the old Corporations Act applied;

the following provisions continue to apply in relation to the market:

                     (c)  paragraphs 769A(1)(c) and (e) of the old Corporations Act, and any associated provisions;

                     (d)  section 769B of the old Corporations Act (but only as applying in relation to paragraphs 769A(1)(c) and (e) of the old Corporations Act), and any associated provisions.

1416  Section 1413 markets—powers for regulations to change how the old and new Corporations Act apply during the transition period

             (1)  The regulations may do all or any of the following in relation to a market the operation of which is authorised by a licence granted under section 1413:

                     (a)  provide that some or all of the provisions (the relevant old legislation) that would otherwise continue to apply in relation to the market because of section 1415 do not apply in relation to the market;

                     (b)  provide that some or all of the relevant old legislation applies in relation to the market with specified modifications during some or all of the transition period for the market;

                     (c)  provide that some or all of the relevant new legislation (within the meaning of section 1414) in relation to the market applies in relation to the market during some or all of the transition period for the market;

                     (d)  provide that specified provisions of the amended Corporations Act (including relevant new legislation), and any associated provisions, apply in relation to the market during some or all of the transition period for the market with specified modifications.

             (2)  Regulations made for the purposes of subsection (1) have effect despite anything in sections 1414 and 1415.

             (3)  Subsection (1) gives a full power to disapply, apply and modify provisions as mentioned in that subsection, including for reasons that do not have an express or implied connection with the transition to the relevant new legislation.

Note:          So (for example), a change to the day‑to‑day operation of the relevant old legislation as continuing to apply may be achieved by a modification under paragraph (1)(b) (whether that change is to an existing rule, or is the addition of a new rule).

1417  Section 1413 markets—additional provisions relating to previously unregulated services

             (1)  This section applies to a financial market in relation to which the following paragraphs are satisfied:

                     (a)  a licence is granted under section 1413 to the operator of the market; and

                     (b)  the conditions on the licence specify, as the classes of financial products that can be dealt with on the market, the classes of financial products specified in whichever of paragraphs 1413(5)(a) and (b) is applicable; and

                     (c)  immediately before the commencement, other financial products (the additional products) were also dealt with on the market, and the fact that the market dealt with those products did not constitute a contravention of a provision of the old Corporations Act.

             (2)  Subject to subsection (3), section 791A of the amended Corporations Act does not apply in relation to the market in so far as all or any of the additional products are dealt with on the market during the period (the transition period) starting on the FSR commencement and ending on whichever of the following first occurs:

                     (a)  the end of the period of 2 years starting on the FSR commencement;

                     (b)  the licensee applies, under subsection 796A(2) of the amended Corporations Act, to have the conditions on the licence varied or revoked, or to have additional conditions imposed on the licence.

             (3)  The regulations may, in relation to a market to which this section applies and the additional products, provide that specified provisions (including section 791A) of the amended Corporations Act, and any associated provisions, apply in relation to a market to which this section applies and the additional products during some or all of the transition period for the market and the products with specified modifications.

1418  Treatment of exempt stock markets and exempt futures markets (other than markets with no identifiable single operator)

             (1)  This section applies to the following markets:

                     (a)  stock markets being operated immediately before the FSR commencement that were, at that time, covered by a declaration (the declaration of exemption) in force immediately before the FSR commencement under subsection 771(1) of the old Corporations Act;

                     (b)  futures markets being operated immediately before the FSR commencement that were, at that time, covered by a declaration (the declaration of exemption) in force immediately before the FSR commencement under subsection 1127(1) of the old Corporations Act.

However it does not apply to any market to which section 1419 applies.

             (2)  Subject to subsection (5), section 791A of the amended Corporations Act does not apply in relation to a stock market or futures market to which this section applies during the period (the transition period) starting on the FSR commencement and ending on whichever of the following first occurs:

                     (a)  the end of the period of 2 years starting on the FSR commencement;

                     (b)  the operator of the market is granted a licence under section 795B of the amended Corporations Act covering the operation of the market;

                     (c)  the Minister makes an exemption under section 791C of the amended Corporations Act covering the market;

                     (d)  the declaration of exemption is revoked.

             (3)  Subject to subsections (4) and (5), Part 7.2 (in the case of a stock market), or Part 8.2 (in the case of a futures market), and any associated provisions, (the relevant old legislation) of the old Corporations Act continue to apply in relation to a stock market or futures market to which this section applies during the transition period for the market.

             (4)  The declaration of exemption (including any conditions specified in the declaration) for a stock market or futures market to which this section applies cannot be varied during the transition period for the market so as to cover the market providing services that were not covered by the declaration as in force immediately before the FSR commencement. However, it may be varied in other ways, or revoked, by the Minister in writing.

             (5)  The regulations may do all or any of the following:

                     (a)  provide that some or all of the relevant old legislation does not apply in relation to a stock market or futures market to which this section applies during some or all of the transition period for the market;

                     (b)  provide that some or all of the relevant old legislation applies in relation to a stock market or futures market to which this section applies with specified modifications during some or all of the transition period for the market;

                     (c)  provide that specified provisions of the amended Corporations Act (including section 791A), and any associated provisions, apply in relation to a stock market or futures market to which this section applies during some or all of the transition period for the market with specified modifications.

1419  Treatment of exempt stock markets and exempt futures markets that do not have a single identifiable operator

             (1)  This section applies to the following markets:

                     (a)  stock markets being operated immediately before the FSR commencement:

                              (i)  that were, at that time, covered by a declaration (the declaration of exemption) in force immediately before the FSR commencement under subsection 771(1) of the old Corporations Act; but

                             (ii)  that did not have a single person who could be identified as the operator of the market;

                     (b)  futures markets being operated immediately before the FSR commencement:

                              (i)  that were, at that time, covered by a declaration (the declaration of exemption) in force immediately before the FSR commencement under subsection 1127(1) of the old Corporations Act; but

                             (ii)  that did not have a single person who could be identified as the operator of the market.

             (2)  In this section:

exempted participant, in relation to a market to which this section applies, means a person:

                     (a)  who is covered by the declaration of exemption (otherwise than in their capacity as a representative of another person who is covered by the declaration); and

                     (b)  whose activities connected with the market after the FSR commencement are activities that, but for this section, would be required by section 911A of the amended Corporations Act to be covered by an Australian financial services licence.

             (3)  Subject to subsections (4) and (5), Part 7.2 (in the case of a stock market), or Part 8.2 (in the case of a futures market), and any associated provisions, (the relevant old legislation) of the old Corporations Act continue to apply in relation to an exempted participant and a stock market or futures market to which this section applies during any period during which section 1431 provides that the relevant new legislation (within the meaning of subsection 1431(1)) does not apply in relation to the exempted participant’s activities connected with the market.

             (4)  The declaration of exemption (including any conditions specified in the declaration) for a stock market or futures market to which this section applies cannot:

                     (a)  be varied during the transition period for an exempted participant and the market so as to cover the market providing services that were not covered by the declaration as in force immediately before the FSR commencement; or

                     (b)  be varied after the FSR commencement so as to cover a person or persons it did not cover immediately before the commencement.

However, it may be varied in other ways, or revoked, by the Minister in writing.

             (5)  The regulations may do either or both of the following:

                     (a)  provide that some or all of the relevant old legislation does not apply in relation to an exempted participant and a market to which this section applies during some or all of the transition period for the exempted participant and the market;

                     (b)  provide that some or all of the relevant old legislation applies in relation to an exempted participant and a market to which this section applies with specified modifications during some or all of the transition period for the exempted participant and the market.

1420  Treatment of stock markets of approved securities organisations

             (1)  This section applies to each stock market being operated immediately before the FSR commencement by a body corporate covered by an approval (the instrument of approval) in force immediately before the FSR commencement under subsection 770(2) of the old Corporations Act, other than a stock market to which section 1413 applies.

             (2)  Subject to subsections (3) and (5), section 791A of the amended Corporations Act does not apply in relation to a stock market to which this section applies during the period (the transition period) starting on the FSR commencement and ending on whichever of the following first occurs:

                     (a)  the end of the period of 2 years starting on the FSR commencement;

                     (b)  the operator of the market is granted a licence under section 795B of the amended Corporations Act covering the operation of the market;

                     (c)  the Minister makes an exemption under section 791C of the amended Corporations Act covering the market;

                     (d)  the instrument of approval is revoked.

             (3)  Subject to subsections (4) and (5), Parts 7.2 and 7.9, and any associated provisions, (the relevant old legislation) of the old Corporations Act continue to apply in relation to a stock market to which this section applies during the transition period for the market.

             (4)  The instrument of approval (including any conditions specified in the instrument) for a stock market to which this section applies cannot be varied during the transition period for the market so as to cover the market providing services that were not covered by the instrument as in force immediately before the FSR commencement. However it may be varied in other ways, or revoked, by the Minister in writing.

             (5)  The regulations may do all or any of the following:

                     (a)  provide that some or all of the relevant old legislation does not apply in relation to a stock market to which this section applies during some or all of the transition period for the market;

                     (b)  provide that some or all of the relevant old legislation applies in relation to a stock market to which this section applies with specified modifications during some or all of the transition period for the market;

                     (c)  provide that specified provisions of the amended Corporations Act (including section 791A), and any associated provisions, apply in relation to a stock market to which this section applies during some or all of the transition period for the market with specified modifications.

1421  Treatment of special stock markets for unquoted interests in a registered scheme

             (1)  This section applies to each stock market being operated before the FSR commencement by a body corporate covered by an approval (the instrument of approval) in force immediately before the FSR commencement under subsection 770A(2) of the old Corporations Act.

             (2)  Subject to subsection (5), section 791A of the amended Corporations Act does not apply in relation to a stock market to which this section applies during the period (the transition period) starting on the FSR commencement and ending on whichever of the following first occurs:

                     (a)  the end of the period of 2 years starting on the FSR commencement;

                     (b)  the operator of the market is granted a licence under section 795B of the amended Corporations Act covering the operation of the market;

                     (c)  the Minister makes an exemption under section 791C of the amended Corporations Act covering the market;

                     (d)  the instrument of approval is revoked.

             (3)  Subject to subsections (4) and (5), Part 7.2, and any associated provisions, (the relevant old legislation) of the old Corporations Act continue to apply in relation to a stock market to which this section applies during the transition period for the market.

             (4)  The instrument of approval (including any conditions specified in the instrument) for a stock market to which this section applies cannot be varied during the transition period for the market so as to cover the market providing services that were not covered by the instrument as in force immediately before the FSR commencement. However it may be varied in other ways, or revoked, by the Minister in writing.

             (5)  The regulations may do all or any of the following:

                     (a)  provide that some or all of the relevant old legislation does not apply in relation to a stock market to which this section applies during some or all of the transition period for the market;

                     (b)  provide that some or all of the relevant old legislation applies in relation to a stock market to which this section applies during some or all of the transition period for the market with specified modifications;

                     (c)  provide that specified provisions (including section 791A) of the amended Corporations Act, and any associated provisions, apply in relation to a stock market to which this section applies during some or all of the transition period for the market with specified modifications.

1422  Treatment of other markets that were not unauthorised

             (1)  This section applies to each market in relation to which the following paragraphs are satisfied:

                     (a)  the market is a financial market within the meaning of the amended Corporations Act;

                     (b)  the market was being operated immediately before the FSR commencement;

                     (c)  the market is not a market to which section 1413, 1418, 1419, 1420 or 1421 applies;

                     (d)  the market was not an unauthorised stock market or an unauthorised futures market (as defined in section 9 of the old Corporations Act) immediately before the FSR commencement.

             (2)  Subject to subsection (3), section 791A of the amended Corporations Act does not apply in relation to a market to which this section applies during the period (the transition period) starting on the FSR commencement and ending on whichever of the following first occurs:

                     (a)  the end of the period of 2 years starting on the FSR commencement;

                     (b)  the operator of the market is granted a licence under section 795B of the amended Corporations Act covering the operation of the market;

                     (c)  the Minister makes an exemption under section 791C of the amended Corporations Act covering the market;

                     (d)  the market starts to provide services in respect of a class or classes of financial products in respect of which it did not provide services immediately before the commencement.

             (3)  The regulations may, in relation to a market to which this section applies, provide that specified provisions (including section 791A) of the amended Corporations Act, and any associated provisions, apply in relation to the market during some or all of the transition period for the market with specified modifications.

Subdivision CTreatment of existing clearing and settlement facilities

1423  When is a clearing and settlement facility being operated immediately before the FSR commencement?

                   Subject to section 1424, in this Subdivision, a reference to a clearing and settlement facility being operated immediately before the FSR commencement is a reference to a clearing and settlement facility that had not permanently ceased to operate before the FSR commencement, even if the clearing and settlement of transactions by means of the facility was not actually occurring immediately before the FSR commencement (for example, because of a routine temporary closure of the facility).

1424  Treatment of proposed clearing and settlement facilities that have not started to operate by the FSR commencement

             (1)  This section applies in relation to any proposed clearing and settlement facilities identified in, or in accordance with, regulations made for the purposes of this subsection. For this purpose, a proposed clearing and settlement facility is a clearing and settlement facility that a person has, before the FSR commencement, indicated an intention that they propose to operate.

             (2)  This Subdivision applies in relation to a proposed clearing and settlement facility to which this section applies subject to the following paragraphs:

                     (a)  subject to paragraphs (b), (c) and (d), this Subdivision applies in relation to the proposed facility as if the facility, as proposed to be operated, were in fact being operated immediately before the FSR commencement;

                     (b)  if, taking account of the effect of paragraph (a), section 1425 applies in relation to the proposed facility, that section applies in relation to the proposed facility:

                              (i)  as if the Minister’s obligation to grant a licence, and impose conditions, under subsection 1425(2) in relation to the proposed facility does not arise unless and until the facility operator lodges with ASIC a notice in relation to the facility under subsection (3) of this section, and does not arise at all if no such notice is given to ASIC by the end of 6 months after the FSR commencement; and

                             (ii)  as if subsection 1425(3) provided for a licence so granted under subsection 1425(2) in relation to the facility, and the conditions subject to which it is granted, to be taken to have had effect from the day (the start day) specified in the subsection (3) notice as the day on which the facility started to operate; and

                            (iii)  as if subsection 1425(6) were omitted; and

                            (iv)  as if the references in subsection 1425(8) to the FSR commencement were instead references to the start day;

                     (c)  if:

                              (i)  taking account of the effect of paragraph (a), section 1429 applies to the proposed facility; and

                             (ii)  the facility operator does not lodge with ASIC a notice in relation to the facility under subsection (3) of this section by the end of 6 months after the FSR commencement;

                            that section ceases to apply in relation to the proposed facility at the end of that period;

                     (d)  if a provision of this Subdivision provides for a provision of the old Corporations Act to continue to apply in relation to the proposed facility, then (without limiting the generality of subsection 1410(3)), while the proposed facility remains non‑operational, the provision of the old Corporations Act only applies in relation to the proposed facility to the extent (if any) to which it would, disregarding the effect of paragraph (a), apply in relation to the proposed facility.

             (3)  If a proposed clearing and settlement facility to which this section applies starts to operate on a day during the period of 6 months starting on the FSR commencement, the operator must, as soon as practicable, and in any event within 7 days, lodge with ASIC written notice of the fact that the facility started to operate on that day.

Note:          Failure to comply with this subsection is an offence (see subsection 1311(1)).

             (4)  ASIC must, within a reasonable time, give the Minister a notice it receives under subsection (3).

1424A  Treatment of unregulated clearing and settlement facilities operated by holders of old Corporations Act approvals

             (1)  This section applies in relation to a clearing and settlement facility if:

                     (a)  the facility was being operated immediately before the FSR commencement by a body corporate in relation to which an approval under section 1131 of the old Corporations Act was in force at that time; but

                     (b)  the services provided by the facility as so operated were not such that section 1128 of the old Corporations Act required the operator to be so approved.

             (2)  In this section:

                     (a)  a reference to the unregulated services is a reference to the services referred to in paragraph (1)(b); and

                     (b)  a reference to regulated services is a reference to services that, if they had been provided by the facility immediately before the commencement, would have been services to which section 1128 of the old Corporations Act applied.

             (3)  For the purposes of section 1425 (as it operates of its own force, rather than because of section 1424), the facility is not to be regarded as a facility that was being operated immediately before the FSR commencement.

             (4)  If the operator has, before the FSR commencement, indicated an intention that they propose to extend the services provided by the facility so that they also cover regulated services:

                     (a)  regulations made for the purposes of subsection 1424(1) may identify the facility as a proposed clearing and settlement facility, but only in relation to those regulated services; and

                     (b)  if they do so, section 1424, and section 1425 as it applies because of section 1424, apply in relation to the facility and those regulated services as if the facility did not already provide the unregulated services.

1425  Obligation of Minister to grant licences covering main existing facilities

             (1)  This section applies to each clearing and settlement facility being operated immediately before the FSR commencement in relation to which either of the following paragraphs applies:

                     (a)  the facility was being operated by the body corporate that was, for the purposes of the old Corporations Act, the securities clearing house;

                     (b)  the facility was being operated by a body corporate in relation to which an approval (the section 1131 approval) under section 1131 of the old Corporations Act was in force at that time.

             (2)  Subject to subsections (3) and (4), the Minister must, in relation to each clearing and settlement facility to which this section applies, grant the operator of the facility a licence, and impose conditions on that licence, in accordance with the following requirements:

                     (a)  the licence must be described as an Australian CS facility licence;

                     (b)  the licence must be granted subject to the following conditions:

                              (i)  a condition specifying the facility as the facility that the licence authorises the licensee to operate;

                             (ii)  a condition specifying, as the classes of financial products in respect of which the facility can provide services, the classes that are appropriate for the facility under subsection (5);

                            (iii)  in the case of a facility to which paragraph (1)(b) applies—a condition to the effect that the licence only covers the facility providing services for the market or markets that were covered by the section 1131 approval.

             (3)  Subject to subsection (6), a licence that subsection (2) requires to be granted must be granted on, or as soon as practicable after, the FSR commencement. If it is granted after the FSR commencement, it, and the conditions subject to which it is granted, are taken to have had effect from that commencement.

             (4)  Sections 824D (more than one licence in the same document) and 824E (more than one CS facility covered by the same licence) of the amended Corporations Act apply in relation to the granting of licences, and licences granted, under this section as if the licences were, or were being, granted under section 824B of that Act. If, pursuant to section 824E, a single licence is granted under this section in respect of several separate facilities, paragraph (2)(b) of this section must be complied with separately in the licence document in relation to each of those facilities.

             (5)  For the purposes of subparagraph (2)(b)(ii), the classes of financial products that are appropriate for a facility to which this section applies are as follows:

                     (a)  for a facility described in paragraph (1)(a)—securities, within the meaning of section 92 of the old Corporations Act as applying for the purposes of Part 7.2 of the old Corporations Act, and agreements of a kind to which section 92A of the old Corporations Act applied immediately before the FSR commencement (or would have applied after the FSR commencement if that section, and any associated provisions, had continued to have effect);

                     (b)  for a facility described in paragraph (1)(b)—futures contracts, within the meaning of section 72 of the old Corporations Act, and agreements of a kind to which section 72A of the old Corporations Act applied immediately before the FSR commencement (or would have applied after the FSR commencement if that section, and any associated provisions, had continued to have effect).

             (6)  Despite anything in subsection (3), the Minister may, under this section, grant a licence, and impose conditions on the licence, at any time during the period starting on the commencement of this section and ending on the FSR commencement on the basis that matters known to the Minister in relation to the clearing and settlement facility concerned will continue to be the case up to the FSR commencement. If the Minister does so:

                     (a)  the licence and conditions come into effect on the FSR commencement, and not before; and

                     (b)  the Minister may vary or revoke the licence, or any of the conditions, before the FSR commencement if the Minister considers it appropriate to do so having regard to the provisions of this section concerning the granting of licences and the imposition of conditions; and

                     (c)  the licence and conditions do not come into effect on the FSR commencement if, immediately before the FSR commencement, the facility is not a clearing and settlement facility to which this section applies.

             (7)  If the Minister grants a licence under this section, the Minister must give the operator of the clearing and settlement facility written notice of:

                     (a)  the grant of the licence, and the conditions imposed on the licence; and

                     (b)  any subsequent revocation or variation under subsection (6) of the licence or conditions.

             (8)  A notice advising of the grant of a licence under this section must contain a statement to the effect that the licence and conditions will not take effect until the FSR commencement, or will be taken to have had effect from the FSR commencement, as the case requires.

1426  Section 1425 facilities—effect of licences and conditions

             (1)  Subject to subsections (2) to (4):

                     (a)  a licence granted under section 1425 that authorises the operation of a facility is, for the purposes of the amended Corporations Act (other than this section), taken to have been granted (and to have been properly granted) under section 824B of the amended Corporations Act; and

                     (b)  conditions imposed under section 1425 on the licence are, for the purposes of the amended Corporations Act (other than this section), taken to have been imposed (and to have been properly imposed) under section 825A of the amended Corporations Act.

Note 1:       Section 824C of the amended Corporations Act (publication of notice of licence grant) applies to the grant of the licence.

Note 2:       The conditions may be varied or revoked, and additional conditions may be imposed, under section 825A of the amended Corporations Act.

             (2)  Section 822A of the amended Corporations Act does not apply in relation to the facility during the period (the transition period) starting on the FSR commencement and ending on whichever of the following first occurs:

                     (a)  the end of the period of 2 years starting on the FSR commencement;

                     (b)  conditions on the licence are varied or revoked, or additional conditions are imposed on the licence, pursuant to an application by the licensee under subsection 825A(2) of the amended Corporations Act.

             (3)  The annual report of the licensee (see section 821E of the amended Corporations Act) for a financial year in which part of the transition period occurs, other than a financial year in which the transition period ends, must include information about:

                     (a)  the steps taken in the year; and

                     (b)  the steps proposed to be taken in the next year;

to ensure that section 822A of the amended Corporations Act will be complied with by the time the transition period ends.

1427  Section 1425 facilities—powers for regulations to change how the old and new Corporations Act apply during the transition period

             (1)  The regulations may do either or both of the following in relation to a clearing and settlement facility the operation of which is authorised by a licence granted under section 1425:

                     (a)  provide that section 822A of the amended Corporations Act, and any associated provisions, apply in relation to the facility during some or all the transition period for the facility;

                     (b)  provide that specified provisions of the amended Corporations Act (including section 822A), and any associated provisions, apply in relation to the facility during some or all of the transition period for the facility with specified modifications.

             (2)  Regulations made for the purposes of subsection (1) have effect despite anything in section 1426.

1428  Section 1425 facilities—additional provisions relating to previously unregulated services

             (1)  This section applies to a clearing and settlement facility in relation to which the following paragraphs are satisfied:

                     (a)  a licence is granted under section 1425 to the operator of the facility; and

                     (b)  the conditions on the licence specify, as the classes of financial products in respect of which the facility can provide services, the classes of financial products specified in whichever of paragraphs 1425(5)(a) and (b) is applicable; and

                     (c)  the facility also, immediately before the commencement, provided services in respect of one or more other classes of financial products (the additional products) and the fact that it did so did not constitute a contravention of a provision of the old Corporations Act.

             (2)  Subject to subsection (3), section 820A of the amended Corporations Act does not apply in relation to the facility in so far as it provides services in respect of all or any of the additional products during the period (the transition period) starting on the FSR commencement and ending on whichever of the following first occurs:

                     (a)  the end of the period of 2 years starting on the FSR commencement;

                     (b)  conditions on the licence are varied or revoked, or additional conditions are imposed on the licence, pursuant to an application by the licensee under subsection 825A(2) of the amended Corporations Act.

             (3)  The regulations may provide that specified provisions of the amended Corporations Act (including section 820A), and any associated provisions, apply in relation to a clearing and settlement facility to which this section applies, and its provision of services in respect of all or any of the additional products, during some or all of the transition period for the facility and the products with specified modifications.

1429  Treatment of other clearing and settlement facilities

             (1)  This section applies to each clearing and settlement facility being operated immediately before the FSR commencement in relation to which both of the following paragraphs are satisfied:

                     (a)  the clearing and settlement facility is not a facility to which section 1425 applies;

                     (b)  section 1128 of the old Corporations Act did not, immediately before the FSR commencement, require the operator of the facility to be a person approved under section 1131.

             (2)  Subject to subsection (3), section 820A of the amended Corporations Act does not apply in relation to the facility during the period (the transition period) starting on the FSR commencement and ending on whichever of the following first occurs:

                     (a)  the end of the period of 2 years starting on the FSR commencement;

                     (b)  the operator of the facility is granted a licence under section 824B of the amended Corporations Act covering the facility;

                     (c)  the Minister makes an exemption under section 820C of the amended Corporations Act covering the facility;

                     (d)  the facility starts to provide services in respect of a class or classes of financial products in respect of which it did not provide services immediately before the FSR commencement.

             (3)  The regulations may provide that specified provisions of the amended Corporations Act (including section 820A), and any associated provisions, apply in relation to a clearing and settlement facility to which this section applies during some or all of the transition period for the facility with specified modifications.

Subdivision DTreatment of people who carry on financial services businesses and their representatives

1430  Meaning of regulated principal, regulated activities and relevant old legislation

             (1)  For the purposes of this Subdivision, a person is a regulated principal if, immediately before the FSR commencement, the person is a person described in column 2 of one of the items in the following table. The regulated activities of that person are as specified in column 3 of that item, and the relevant old legislation are as specified in column 4 of that item.

 

Regulated principals and regulated activities

Item

These persons are regulated principals

These are the regulated principal’s regulated activities

This is the relevant old legislation (if any)

1

A holder of a dealers licence within the meaning of the old Corporations Act.

The activities that the licence (as in force immediately before the FSR commencement) authorised the person to carry on.

Parts 7.3, 7.4 (other than Division 2), 7.5, 7.6 and 7.7 of the old Corporations Act, and any associated provisions.

2

A holder of an investment advisers licence within the meaning of the old Corporations Act.

The activities that the licence (as in force immediately before the FSR commencement) authorised the person to carry on.

Parts 7.3, 7.4 (other than Division 2) and 7.7 of the old Corporations Act, and any associated provisions.

3

A holder of a futures brokers licence within the meaning of the old Corporations Act.

The activities that the licence (as in force immediately before the FSR commencement) authorised the person to carry on.

Parts 8.3, 8.4 (other than section 1210) and 8.5 of the old Corporations Act, and any associated provisions.

4

A holder of a futures advisers licence within the meaning of the old Corporations Act.

The activities that the licence (as in force immediately before the FSR commencement) authorised the person to carry on.

Parts 8.3 and 8.4 (other than section 1210) of the old Corporations Act, and any associated provisions.

5

A registered insurance broker within the meaning of the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement.

The person’s business as an insurance broker within the meaning of the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement.

All the provisions of the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement, and any associated provisions.

6

A body regulated by APRA carrying on activities that, if carried on after the FSR commencement, would (apart from this Subdivision) be required by the amended Corporations Act to be covered by an Australian financial services licence.

The class of activities carried on by the person immediately before the FSR commencement that, if carried on after the FSR commencement, would (apart from this Subdivision) be required by the amended Corporations Act to be covered by an Australian financial services licence.

For a body regulated by APRA that was an insurer within the meaning of the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement—all the provisions of that Act as then in force, and any associated provisions.

In any other case—subject to any regulations made for the purposes of this item, there is no relevant old legislation.

7

A person who is a registered foreign insurance agent of an unauthorised foreign insurer within the meaning of the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement.

The person’s business as a foreign insurance agent.

All the provisions of the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement, and any associated provisions.

8

A holder of a general authority under regulation 38A of the Banking (Foreign Exchange) Regulations as in force immediately before the FSR commencement.

The activities the authority authorises its holder to carry on.

Regulations 38A and 39 of the Banking (Foreign Exchange) Regulations as in force immediately before the FSR commencement.

9

A person included in a class of persons specified in regulations made for the purposes of this item.

For a person in a class so specified, the activities identified in, or in accordance with, the regulations as being the regulated activities of a person in that class.

The provisions (if any) identified in, or in accordance with, the regulations as being the relevant old legislation for a person in that class, and any associated provisions.

10

A person who carries on any other activities (that is, activities that are not regulated activities for the purposes of any of items 1 to 9) that, if carried on after the FSR commencement, would (apart from this Subdivision) be required by the amended Corporations Act to be covered by an Australian financial services licence, except to the extent that subsection (2) excludes this item from applying.

The class of activities so carried on by the person immediately before the FSR commencement that, if carried on after the FSR commencement, would (apart from this Subdivision) be required by the amended Corporations Act to be covered by an Australian financial services licence.

There is no relevant old legislation.

             (2)  Item 10 of the table in subsection (1) does not apply to a person and activities they carry on to the extent that the person’s carrying on of any of those activities is in contravention of any of the provisions of the relevant old legislation for any of the other categories of regulated principals.

             (3)  If a person is a regulated principal of 2 or more different kinds, this Subdivision applies separately in relation to the person in their capacity as a regulated principal of each of those kinds.

Note:          This may result (depending on what action the regulated principal takes) in a regulated principal having to comply with the relevant new legislation (within the meaning of subsection 1431(1)) in respect of their activities as a regulated principal of one kind, but, at the same time, having to comply with the relevant old legislation in respect of their activities as a regulated principal of another kind.

1431  Parts 7.6, 7.7 and 7.8 of the amended Corporations Act generally do not apply to a regulated principal during the transition period

             (1)  Subject to subsections (2) and (3), Parts 7.6 (other than Subdivisions A and B of Division 4, and Division 5), 7.7 and 7.8 (other than section 992A) of the amended Corporations Act (the relevant new legislation) do not apply to a regulated principal and their regulated activities during the period (the transition period) starting on the FSR commencement and ending when the first of the following events occurs:

                     (a)  the period of 2 years starting on the FSR commencement ends;

                     (b)  the regulated principal is granted a licence under section 913B of the amended Corporations Act that covers their regulated activities;

                     (c)  the regulated principal starts to be covered by an exemption under subsection 911A(2) of the amended Corporations Act (or would start to be so covered if that subsection applied) in respect of their regulated activities;

                     (d)  the regulated principal ceases (for whatever reason) to have the status that made them a regulated principal.

For the purposes of paragraph (d), having a status includes holding a licence, registration, approval or other similar thing, or carrying on particular activities.

Note 1:       Because of section 1441, a regulated principal whose transition period has not ended (and so who is not required to comply with the relevant new legislation) may nonetheless be required to comply with obligations under Part 7.9 of the amended Corporations Act.

Note 2:       For the treatment of representatives, see section 1436.

             (2)  Division 5 of Part 7.6 of the amended Corporations Act has effect in relation to a regulated principal during the transition period subject to the following paragraphs:

                     (a)  the regulated principal may give and revoke authorisations under section 916A or consents under subsection 916B(3) as if the regulated principal were a financial services licensee, however, for the purposes of the provisions of the amended Corporations Act outside that Division, such an authorisation or consent is taken not to have effect unless and until the regulated principal is granted a licence under section 913B of the amended Corporations Act that covers the activities to which the authorisation or consent relates (whether or not it also covers other activities);

                     (b)  a person authorised by a section 916A authorisation so made by the regulated principal may give and revoke authorisations under subsection 916B(3) as if they were an authorised representative and the regulated principal were the authorising financial services licensee, however, for the purposes of the provisions of the amended Corporations Act outside that Division, such an authorisation is taken not to have effect unless and until the regulated principal is granted a licence under section 913B of the amended Corporations Act that covers the activities to which the authorisation relates (whether or not it also covers other activities);

                     (c)  the regulated principal may give and revoke consents under section 916C as if they were a financial service licensee, however, any such consent does not take effect unless and until the regulated principal is granted a licence under section 913B of the amended Corporations Act;

                     (d)  section 916F applies in relation to an authorisation so made by the regulated principal during the transition period as if the period of 15 business days referred to in subsections 916F(1) and (1A) did not start unless and until the regulated principal is granted a licence under section 913B of the amended Corporations Act that covers the activities to which the authorisation relates (whether or not it also covers other activities), and section 916F does not apply at all in relation to revocations so made during the transition period.

             (3)  If, before paragraph (1)(a) or (d) occurs:

                     (a)  the regulated principal is granted a licence under section 913B of the amended Corporations Act that covers some only (the relevant part) of their regulated activities; or

                     (b)  the regulated principal starts to be covered by an exemption under subsection 911A(2) of the amended Corporations Act in respect of some only (the relevant part) of their regulated activities;

the relevant new legislation starts applying, from that time, to the relevant part of the regulated principal’s regulated activities, and subsection (1) continues to apply to the person as if the regulated principal’s regulated activities did not include the relevant part.

             (4)  Subsection (3) has effect subject to subsection 1430(3).

1432  Continued application of relevant old legislation

             (1)  Subject to subsection (2), during the transition period for a regulated principal, the relevant old legislation (if any) continues to apply, despite its repeal:

                     (a)  to, and in relation to, the regulated principal and their regulated activities; and

                     (b)  to any other person to whom it is expressed to apply, but only in relation to matters related to the regulated principal and their regulated activities.

Note:          So, for example, people may continue to be appointed as agents or representatives of the regulated principal (or to have those appointments varied or revoked) during the transition period under provisions of the relevant old legislation that deal with such matters.

             (2)  If, because of subsection 1431(2), the relevant new legislation (within the meaning of subsection 1431(1)) starts to apply to part of a person’s regulated activities from a particular time, the relevant old legislation (if any) stops applying, from that time, in relation to that part of those activities.

1433  Streamlined licensing procedure for certain regulated principals

             (1)  This section applies to the following regulated principals:

                     (a)  a regulated principal of a kind referred to in any of items 1 to 5 of the table in subsection 1430(1), but not including anyone who is:

                              (i)  an exempted participant for the purposes of section 1419; or

                             (ii)  in a class of persons specified in, or identified in accordance with, regulations made for the purposes of subsection (3);

                     (b)  a regulated principal of a kind referred to in item 9 of that table who:

                              (i)  is in a class of persons specified in regulations made for the purposes of this subparagraph; and

                             (ii)  is not in a class of persons specified in, or identified in accordance with, regulations made for the purposes of subsection (3).

             (2)  If:

                     (a)  a regulated principal to whom this section applies, before the end of their transition period, applies (in accordance with section 913A of the amended Corporations Act) for a licence covering some or all of their regulated activities (but no other activities); and

                     (b)  their application includes a statement (in accordance with the requirements of the application form) to the effect that they will, if granted the licence, comply with their obligations as a financial services licensee;

the following provisions apply:

                     (c)  section 913B of the amended Corporations Act applies to their application as if paragraphs 913B(1)(b), (c), (ca) and (d), and subsections 913B(2) to (5), were omitted; and

                     (d)  the licence condition required by subsection 914A(6) of the amended Corporations Act in relation to a licence granted pursuant to their application must specify, as the financial services that the licensee is authorised to provide, financial services that equate (as closely as possible) to the regulated activities in respect of which the application was made.

Note 1:       Paragraph (c) does not limit the matters that can be taken into account under section 915C (suspension or cancellation after offering a hearing) in relation to a licence that has been granted under section 913B as it applies because of this section.

Note 2:       The condition referred to in paragraph (d), as with any other conditions imposed on the licence under section 914A of the amended Corporations Act, is subject to variation or revocation in accordance with that section.

             (3)  The regulations may identify classes of persons, or provide for the identification of classes of persons, who are not to be covered by this section.

1434  Special licences for insurance multi‑agents during first 2 years after FSR commencement

             (1)  For the purposes of this section, a person is an insurance multi‑agent at a particular time if, at that time:

                     (a)  the person is an insurance intermediary (but not an insurance broker), within the meaning of the Insurance (Agents and Brokers) Act 1984 as then in force; and

                     (b)  the person has agreements with 2 or more different insurers under section 10 of that Act.

             (2)  If:

                     (a)  a person who, immediately before the FSR commencement, is an insurance multi‑agent applies in accordance with section 913A of the amended Corporations Act for a licence, during the period of 2 years starting on the FSR commencement; and

                     (b)  the application is lodged at a time:

                              (i)  when the person is still carrying on activities as agent for one or more of the insurers with whom, immediately before the FSR commencement, they had agreements as mentioned in paragraph (1)(b); or

                             (ii)  that is not more than 6 months after the person ceased to so carry on activities as agent for any of those insurers; and

                     (c)  their application includes a statement (in accordance with the requirements of the application form) to the effect that they want this section to apply to their application;

the following provisions apply:

                     (d)  section 913B of the amended Corporations Act applies to their application as if the reference in paragraph 913B(1)(b) to section 912A did not include the obligations under paragraphs 912A(e) and (f);

                     (e)  the licence condition required by subsection 914A(6) of the amended Corporations Act in relation to a licence granted pursuant to their application must specify, as the financial services that the licensee is authorised to provide:

                              (i)  providing financial product advice in relation to risk insurance products and investment life insurance products; and

                             (ii)  dealing in risk insurance products and investment life insurance products.

             (3)  If the application is granted, then:

                     (a)  while the licence remains in force:

                              (i)  paragraphs 912A(e) and (f) of the amended Corporations Act do not apply to the licensee and the financial services covered by the licence; and

                             (ii)  sections 942B and 942C apply in relation to any Financial Services Guide provided by the licensee or an authorised representative of the licensee as if they included a requirement to include in the Guide a statement that the licensee is not bound by the obligations in paragraphs 912A(e) and (f) and that sets out what those obligations are; and

                     (b)  the licence conditions cannot be varied so that the licence covers the licensee providing financial services other than those referred to in paragraph (2)(e); and

                     (c)  the licence ceases to be in force (unless earlier revoked) at the end of the period of 2 years starting on the FSR commencement.

1435  Licensing decisions made within the first 2 years of the FSR commencement—regard may be had to conduct and experience of applicant or related body corporate that currently provides same or similar services

             (1)  This section applies:

                     (a)  if a person applies, during the period of 2 years starting on the FSR commencement, under section 913A of the amended Corporations Act for the grant of a licence covering the provision of particular financial services (the relevant financial services); and

                     (b)  ASIC is aware that:

                              (i)  the applicant; or

                             (ii)  if the applicant is a body corporate—a related body corporate of the applicant;

                            is currently (as at the time the application is being considered by ASIC) providing services that are the same as, or similar to, all or any of the relevant financial services.

             (2)  In considering the matters it is required by section 913B of the amended Corporations Act to consider in deciding whether to grant the licence, ASIC may (but is not required to) have regard to the conduct and experience (including conduct and experience before the FSR commencement) of the applicant, or the related body corporate, in providing services that are the same as, or similar to, all or any of the relevant financial services (so far as ASIC is aware of such conduct and experience).

             (3)  Subsection (2) is not intended to limit, by implication, the matters that ASIC can take into account under section 913B of the amended Corporations Act when considering whether to grant a licence under that section (whether pursuant to an application to which this section applies or otherwise).

1436  Treatment of representatives—general

             (1)  This section applies to a person who is a representative of a regulated principal. For this purpose, a representative includes, but is not limited to:

                     (a)  an agent (however described) of the regulated principal; and

                     (b)  an employee or director of the regulated principal; and

                     (c)  any other person who, in accordance with the regulated principal’s relevant old legislation as it continues to have effect in relation to the regulated principal, is authorised to carry on activities for or on behalf of the regulated principal.

          (1A)  However, if a person who, under subsection (1), would be the representative of another person is a financial services licensee in their own right, the licensee, when engaged in activities covered by their licence, is taken not to be acting as representative of that other person.

             (2)  The following provisions apply in relation to a person who is a representative of a regulated principal:

                     (a)  during any period when, because of section 1431, the relevant new legislation (within the meaning of subsection 1431(1)) does not apply to the regulated principal and particular regulated activities, the relevant new legislation also does not apply to the representative when they are acting as a representative of the regulated principal in relation to any of those activities;

                     (b)  during any period when, because of section 1432, relevant old legislation continues to apply to the regulated principal and particular regulated activities, that legislation also continues to apply to the representative when they are acting as a representative of the regulated principal in relation to any of those activities.

Note 1:       If a person is a representative of 2 persons, this may result in the person having to comply with the relevant new legislation in respect of what they do as a representative of one of those persons but, at the same time, having to comply with relevant old legislation in respect of what they do as a representative of the other of those persons.

Note 2:       If a person is a representative of another person who carries on 2 different sets of activities, being sets of activities in relation to which there are separate applications of this Subdivision because of subsection 1430(3), this may result in the person having to comply with the relevant new legislation in respect of what they do in relation to one of those sets of activities but, at the same time, having to comply with relevant old legislation in respect of what they do in relation to the other set of activities.

Note 3:       Because of section 1441, a representative who is not required to comply with the relevant new legislation may nonetheless be required to comply with obligations under Part 7.9 of the amended Corporations Act.

1436A  Treatment of representatives—insurance agents

             (1)  This section has effect despite anything else in this Subdivision, including sections 1436 and 1437.

             (2)  This section applies if, immediately before the FSR commencement, a person is an insurance intermediary (but not an insurance broker) within the meaning of the Insurance (Agents and Brokers) Act 1984 as then in force because of an agreement they have with an insurer under section 10 of that Act. For the purposes of this section:

                     (a)  the person is the insurance agent; and

                     (b)  the agreement is the authorising agreement; and

                     (c)  the matters dealt with in the provisions included in the agreement in compliance with section 10 of that Act, and any other matters included in the agreement that are related to those matters, are the relevant matters; and

                     (d)  the insurer is the principal.

If, immediately before the FSR commencement, the person has more than one such agreement, this section applies separately in relation to each of those agreements.

             (3)  For the purposes of this section, the transition period is the period starting on the FSR commencement and ending when the first of the following events occurs:

                     (a)  the period of 2 years starting on the FSR commencement ends;

                     (b)  the authorising agreement ceases to be in force;

                     (c)  the insurance agent has lodged with ASIC notice in writing that the agent no longer wants to be covered by the Insurance (Agents and Brokers) Act 1984:

                              (i)  from a specified date, being a date that is after the notice is given to ASIC; or

                             (ii)  from the end of a specified period, being a period that ends after the notice is given to ASIC;

                            and that date arrives or period ends;

                     (d)  the insurance agent is granted a licence under section 913B (including as it has effect because of section 1434) of the amended Corporations Act that covers the insurance agent engaging in (as licensee) the range of activities that they previously engaged in as agent under the authorising agreement.

             (4)  A notice (the original notice) given for the purposes of paragraph (3)(c) may before the date, or the end of the period, specified in the original notice as mentioned in that paragraph:

                     (a)  be varied to specify another date or period, being a date or period that would satisfy the requirements of subparagraph (3)(c)(i) or (ii) if the reference in that subparagraph to when the notice (being the original notice) is given to ASIC were instead a reference to when the notice of variation is given to ASIC under this subsection; or

                     (b)  be revoked.

The variation or revocation must be made by notice in writing lodged with ASIC.

             (5)  Subject to subsection (7), during the transition period, the Insurance (Agents and Brokers) Act 1984 as in force immediately before the FSR commencement, and any associated provisions, (the relevant old legislation) continue to apply (despite the repeal of that Act) to, and in relation to, the insurance agent, the principal and the relevant matters.

             (6)  Subject to subsection (7), during the transition period, the relevant new legislation (within the meaning of section 1431) does not apply to, or in relation to, the insurance agent, the principal and the relevant matters.

             (7)  Regulations made for the purposes of this subsection may do either or both of the following:

                     (a)  provide that specified provisions of the relevant old legislation apply (with or without specified modifications), or do not apply, to the insurance agent, the principal and some or all of the relevant matters;

                     (b)  provide that specified provisions of the relevant new legislation apply (with or without specified modifications), or do not apply, to the insurance agent, the principal and some or all of the relevant matters.

The regulations may provide as mentioned in paragraph (a) or (b) even after the end of the transition period.

             (8)  If:

                     (a)  before the end of the transition period, or such longer period during which regulations made for the purposes of subsection (7) provide for the application of some or all of the relevant old legislation, the insurance agent engages in conduct that, under the authorising agreement as then in force, creates a right to brokerage, commission or other remuneration (which may be a present right, or a future right that is dependent on matters specified in the authorising agreement); and

                     (b)  that right is still in existence immediately before the end of that period;

the right is not taken to be brought to an end merely because of the repeal of the relevant old legislation or the enactment of the relevant new legislation, or because under this section the relevant old legislation ceases to apply and the relevant new legislation starts to apply.

             (9)  Subsection (8) is not intended to affect, in any way, the determination of the question whether any other right (whether or not it is under an agreement under section 10 of the Insurance (Agents and Brokers) Act 1984) is in any way affected by the provisions of the Financial Services Reform Act 2001 or the Financial Services Reform (Consequential Provisions) Act 2001 (including the amendments made by those Acts).

1437  Exemptions and modifications by ASIC

             (1)  This section applies to the following provisions:

                     (a)  the provisions of this Subdivision (other than section 1436A) and any associated provisions;

                     (b)  the provisions of legislation that continues to apply because of subsection 1432(1) or 1436(3).

             (2)  ASIC may:

                     (a)  exempt a person or a class of persons from some or all of the provisions to which this section applies; or

                     (b)  declare that some or all of the provisions to which this section applies apply in relation to a person or a class of persons as if the provisions were modified or varied as specified in the declaration.

             (3)  A declaration under paragraph (2)(b) may provide for the continued application (with or without modifications, and to the exclusion of provisions of the amended Corporations Act) of provisions referred to in paragraph (1)(b), even after the end of the period of 2 years starting on the FSR commencement.

             (4)  An exemption may apply unconditionally or subject to specified conditions. A person to whom a condition specified in an exemption applies must comply with the condition. The Court may order the person to comply with the condition in a specified way. Only ASIC may apply to the Court for the order.

             (5)  An exemption or declaration must be in writing and ASIC must publish notice of it in the Gazette.

             (6)  If conduct (including an omission) of a person would not constitute an offence if a particular declaration under paragraph (2)(b) had not been made, that conduct does not constitute an offence unless, before the conduct occurred (in addition to complying with the gazettal requirement of subsection (5)):

                     (a)  the text of the declaration was made available by ASIC on the internet; or

                     (b)  ASIC gave written notice setting out the text of the declaration to the person.

In a prosecution for an offence to which this subsection applies, the prosecution must prove that paragraph (a) or (b) was complied with before the conduct occurred.

Subdivision EProduct disclosure requirements

1438  New product disclosure provisions do not apply to existing products during transition period

             (1)  This section applies to all financial products issued by a person, other than financial products in a class of products that are first issued by the person after the FSR commencement.

             (2)  For the purposes of this section, the new product disclosure provisions in relation to a financial product to which this section applies are the provisions of Part 7.9 of the amended Corporations Act that, apart from this section, would apply in relation to the financial product (whether those provisions apply to the issuer of the product or to another person or persons), other than the following provisions:

                     (a)  section 1017C (information for existing holders of superannuation products and RSA products);

                     (b)  section 1017DA (trustees of superannuation entities—regulations may specify additional obligations to provide information), and regulations made for the purposes of that section;

                     (c)  section 1017E (dealing with money received for financial product before the product is issued);

                     (d)  section 1017F (confirming transactions);

                     (e)  sections 1019A and 1019B (cooling‑off period for return of financial product);

                    (ea)  Division 5A (unsolicited offers to purchase financial products off‑market);

                      (f)  sections 1020B and 1020C (short selling of securities, managed investment products and certain other financial products);

                     (g)  section 1020D (Part cannot be contracted out of).

             (3)  Subject to subsection (4), the new product disclosure provisions do not apply in relation to a financial product to which this section applies during the period (the transition period) starting on the FSR commencement and ending on whichever of the following first occurs:

                     (a)  the end of the period of 2 years starting on the FSR commencement;

                     (b)  the date specified in a notice lodged with ASIC by the issuer of the product that relates to the product, or a class of financial products that includes the product, and that satisfies the following requirements:

                              (i)  the notice must indicate that the issuer of the product wants the new product disclosure provisions to apply in relation to the product from a date specified in the notice;

                             (ii)  the date specified in the notice is the FSR commencement or a later date;

                            (iii)  the date specified in the notice is at least 28 days after the notice is lodged with ASIC.

Note 1:       A notice under paragraph (b) may be lodged during the period between the commencement of this section and the FSR commencement, or it may be lodged after the FSR commencement.

Note 2:       Subject to Division 2, the provisions covered by paragraphs (2)(a) to (f) apply from the FSR commencement in relation to all financial products to which they purport to apply.

             (4)  If the date specified in a notice lodged with ASIC in accordance with paragraph (3)(b) is the FSR commencement, there is no transition period in relation to the financial product or products to which the notice relates.

             (5)  A notice (the first notice) lodged with ASIC in accordance with paragraph (3)(b):

                     (a)  may, by a further notice lodged with ASIC, be varied to specify a different date (the new date), but only if:

                              (i)  that further notice is lodged with ASIC at least 28 days before the date specified in the first notice; and

                             (ii)  the new date is at least 28 days after that further notice is lodged with ASIC; and

                     (b)  may, by a further notice lodged with ASIC, be revoked, but only if that further notice is lodged with ASIC at least 28 days before the date specified in the first notice.

A date that was specified in a notice before its variation or revocation in accordance with this subsection is to be disregarded for the purposes of the other provisions of this section.

             (6)  If the issuer of a financial product lodges a notice with ASIC in accordance with paragraph (3)(b) that covers the product, the issuer must comply with any applicable requirements determined, by legislative instrument, by ASIC for the purposes of this subsection in relation to the following matters:

                     (a)  informing people about the notice and its significance; and

                     (b)  informing people about any subsequent variation or revocation of the notice.

Note:          Failure to comply with this subsection is an offence (see subsection 1311(1)).

             (7)  A determination by ASIC for the purposes of subsection (6):

                     (b)  may cover all financial products or one or more classes of financial products; and

                     (c)  may make different provision in relation to different classes of financial products.

             (8)  Subject to the regulations, ASIC must take reasonable steps to ensure that, during the period of 2 years starting on the FSR commencement, information is available:

                     (a)  on the internet; and

                     (b)  at offices of ASIC;

about notices that have been lodged in accordance with paragraph (3)(b). The information must be updated to take account of variations and revocations of such notices.

1439  Offences against new product disclosure provisions—additional element for prosecution to prove if conduct occurs after opting‑in and before the end of the first 2 years

             (1)  If:

                     (a)  conduct in relation to a financial product that would (apart from this section) constitute an offence against, or based on, any of the new product disclosure provisions occurred at a time:

                              (i)  during the period of 2 years starting on the FSR commencement; and

                             (ii)  after the date specified in a notice lodged in relation to the product in accordance with paragraph 1438(3)(b); and

                     (b)  the new product disclosure provisions started to apply in relation to the product from the date specified in the notice;

the conduct constitutes an offence against that provision only if (in addition to the other elements of the offence), either:

                     (c)  the person knew that, or was reckless as to whether, the product issuer had lodged a notice under that paragraph that specified that date; or

                     (d)  the person did not know that, and was not reckless as to whether, the product issuer had lodged a notice under that paragraph that specified that date, but the conduct would have contravened the provisions referred to in section 1440 that would have applied to and in relation to the product if those provisions had still applied when the conduct occurred.

             (2)  In this section:

conduct means an act, an omission to perform an act or a state of affairs.

1440  Continued application of certain provisions of old disclosure regimes during transition period

                   During the transition period (if any) for a financial product, the following provisions continue to apply, despite their repeal or amendment, to and in relation to the financial product:

                     (a)  if the product is a managed investment product—all the provisions of Chapter 6D of the old Corporations Act, other than section 722 of that Act, and any associated provisions;

                     (b)  if the product is a derivative—section 1210 of the old Corporations Act, and any associated provisions;

                     (c)  if the product is a superannuation product—the following provisions, and any associated provisions:

                              (i)  section 153, and all the provisions of Divisions 3 and 4 of Part 19, of the Superannuation Industry (Supervision) Act 1993 as in force immediately before the FSR commencement;

                             (ii)  the section 153A of that Act that was provided for in Modification Declaration no. 15 as in force immediately before the FSR commencement, being a declaration of modification made under section 332 of that Act;

                     (d)  if the product is an RSA product—section 51, and all the provisions of Divisions 4 and 5 of Part 5, of the Retirement Savings Accounts Act 1997 as in force immediately before the FSR commencement, and any associated provisions;

                     (e)  if the product is an insurance product—sections 71A and 73 of the Insurance Contracts Act 1984 as in force immediately before the FSR commencement, and any associated provisions.

1441  Certain persons who are not yet covered by Parts 7.6, 7.7 and 7.8 of the amended Corporations Act are required to comply with Part 7.9 obligations as if they were regulated persons

                   From the time from which the new product disclosure provisions start to apply in relation to a particular financial product, the following persons must comply with those provisions in relation to that product, as if they were regulated persons as defined in section 1011B of the amended Corporations Act, even though they are not yet subject, or fully subject, to Parts 7.6, 7.7 and 7.8 of that Act:

                     (a)  a regulated principal;

                     (b)  a representative (as defined in section 1436) of a regulated principal; or

                     (c)  an insurance agent (as defined in section 1436A).

1442  Exemptions and modifications by ASIC

             (1)  This section applies to the following provisions:

                     (a)  the provisions of this Subdivision and any associated provisions;

                     (b)  the provisions that continue to apply because of section 1440.

             (2)  ASIC may:

                     (a)  exempt a person or a class of persons, or a financial product or class of financial products, from some or all of the provisions to which this section applies; or

                     (b)  declare that some or all of the provisions to which this section applies apply in relation to a person or a class of persons, or a financial product or class of financial products, as if the provisions were modified or varied as specified in the declaration.

             (3)  A declaration under paragraph (2)(b) may provide for the continued application (with or without modifications, and to the exclusion of provisions of the amended Corporations Act) of provisions referred to in paragraph (1)(b), even after the end of the period of 2 years starting on the FSR commencement.

             (4)  An exemption may apply unconditionally or subject to specified conditions. A person to whom a condition specified in an exemption applies must comply with the condition. The Court may order the person to comply with the condition in a specified way. Only ASIC may apply to the Court for the order.

             (5)  An exemption or declaration must be in writing and ASIC must publish notice of it in the Gazette.

             (6)  If conduct (including an omission) of a person would not constitute an offence if a particular declaration under paragraph (2)(b) had not been made, that conduct does not constitute an offence unless, before the conduct occurred (in addition to complying with the gazettal requirement of subsection (5)):

                     (a)  the text of the declaration was made available by ASIC on the internet; or

                     (b)  ASIC gave written notice setting out the text of the declaration to the person.

In a prosecution for an offence to which this subsection applies, the prosecution must prove that paragraph (a) or (b) was complied with before the conduct occurred.

Subdivision FCertain other product‑related requirements

1442A  Deferred application of hawking prohibition

             (1)  For the purposes of this section, the transition period is the period starting on the FSR commencement and ending on whichever of the following first occurs:

                     (a)  the day fixed by Proclamation for the purposes of this paragraph;

                     (b)  the end of the period of 6 months starting on the FSR commencement.

             (2)  Regulations made for the purposes of this section may provide for specified provisions of legislation that is repealed by the Financial Services Reform Act 2001 or the Financial Services Reform (Consequential Provisions) Act 2001, being provisions that deal with the same or a similar matter as that dealt with in section 992A of the amended Corporations Act, to continue to apply (whether with or without specified modifications) during the transition period.

             (3)  During the transition period, section 992A of the amended Corporations Act does not apply to any person, except to the extent (if any) provided for in regulations made for the purposes of this section.

1442B  Deferred application of confirmation of transaction and cooling‑off provisions etc.

             (1)  This section applies to all financial products issued by a person, other than financial products in a class of products that are first issued by the person after the FSR commencement.

             (2)  For the purposes of this section, the transition period, in relation to a financial product to which this section applies, is the period starting on the FSR commencement and ending on whichever of the following first occurs:

                     (a)  the day fixed by Proclamation for the purposes of this paragraph;

                     (b)  the end of the period of 6 months starting on the FSR commencement;

                     (c)  the new product disclosure provisions (within the meaning of section 1438) start to apply in relation to the product.

             (3)  Subject to subsection (5), the following provisions (the preserved provisions), to the extent they are relevant to a financial product to which this section applies, continue to apply, despite their repeal, in relation to the financial product during the transition period:

                     (a)  Division 6 of Part 19 of the Superannuation Industry (Supervision) Act 1993, and any associated provisions;

                     (b)  Division 7 of Part 5 of the Retirement Savings Accounts Act 1997, and any associated provisions;

                     (c)  sections 64 and 64A of the Insurance Contracts Act 1984, and any associated provisions;

                     (d)  any other provisions specified in regulations made for the purposes of this paragraph, and any associated provisions in relation to provisions so specified.

             (4)  Subject to subsection (5), during the transition period, the following provisions (the deferred provisions) of the amended Corporations Act do not apply in relation to a financial product to which this section applies:

                     (a)  section 1017F;

                     (b)  sections 1019A and 1019B;

                     (c)  any other provisions of Part 7.9 of the amended Corporations Act that are not part of the new product disclosure provisions (within the meaning of section 1438) and that are specified in regulations made for the purposes of this paragraph.

             (5)  Regulations made for the purposes of this subsection may do either or both of the following:

                     (a)  provide that specified provisions of the preserved provisions apply (with or without specified modifications), or do not apply, in relation to a financial product to which this section applies;

                     (b)  provide that specified provisions of the deferred provisions apply (with or without specified modifications), or do not apply, in relation to a financial product to which this section applies.

The regulations may provide as mentioned in paragraph (a) or (b) even after the end of the transition period.

Division 2Other transitional provisions

1443  Definitions

             (1)  In this Division:

amended Corporations Act has the same meaning as in Division 1.

class, in relation to financial products, has a meaning affected by regulations made for the purposes of subsection (2).

FSR commencement has the same meaning as in Division 1.

law of the Commonwealth includes a reference to an instrument made under such a law.

new legislation means relevant legislation as in force after the FSR commencement.

old legislation means relevant legislation as in force immediately before the FSR commencement.

relevant amendments means the amendments made by:

                     (a)  the Financial Services Reform Act 2001; and

                     (b)  the Financial Services Reform (Consequential Provisions) Act 2001.

relevant legislation means the following legislation:

                     (a)  this Act;

                     (b)  the Acts that are amended by the relevant amendments;

                     (c)  regulations or other instruments made under Acts covered by paragraph (a) or (b);

                     (d)  any other law of the Commonwealth, or instrument made under a law of the Commonwealth, identified in regulations made for the purposes of this paragraph.

             (2)  The regulations may include provisions identifying, or providing for the identification of, what constitutes a class of financial products for the purposes of a provision or provisions of this Division.

1444  Regulations may deal with transitional, saving or application matters

             (1)  The regulations may deal with matters of a transitional, saving or application nature relating to the relevant amendments and the transition from the application of the old legislation to the application of the new legislation. Regulations made for this purpose may make such provision as is necessary to take account of the fact that, because of Division 1, different provisions of the amended Corporations Act start applying (and different provisions of the old legislation stop applying) in relation to different people, things and matters at different times.

             (2)  Regulations made for the purposes of this section are of no effect to the extent that they are inconsistent with:

                     (a)  a provision of Division 1; or

                     (b)  a regulation or determination made under a provision of Division 1, other than any such regulation or determination (the other instrument) that is expressed to have effect subject to anything in regulations made for the purposes of this section (in which case, the other instrument is of no effect, to the extent of the inconsistency).

             (3)  Without limiting subsection (1), the regulations may provide for a matter to be dealt with, wholly or partly, in any of the following ways:

                     (a)  by applying (with or without modifications) to the matter:

                              (i)  provisions of a law of the Commonwealth; or

                             (ii)  provisions of a repealed or amended law of the Commonwealth, in the form that those provisions took before the repeal or amendment; or

                            (iii)  a combination of provisions referred to in subparagraphs (i) and (ii);

                     (b)  by otherwise specifying rules for dealing with the matter;

                     (c)  by specifying a particular consequence of the matter, or of an outcome of the matter, for the purposes of a law of the Commonwealth.

             (4)  Without limiting subsections (1) and (3), the regulations may provide for the continued effect after the FSR commencement, for the purposes of the new legislation, of a thing done or instrument made, or a class of things done or instruments made, before the FSR commencement, under or for the purposes of the old legislation. In the case of an instrument, or class of instruments, the regulations may (either when providing for the continued effect of the instrument or instruments or at a later time) provide for the instrument or instruments, as continuing to have effect, to have effect subject to modifications.

             (5)  Without limiting subsection (4), regulations made for the purposes of that subsection may permit all or any of the following matters to be determined in writing by a specified person, or by a person included in a specified class of persons:

                     (a)  the identification of a thing done or instrument made, or a class of things done or instruments made, that is to continue to have effect;

                     (b)  the purpose for which a thing done or instrument made, or a class of things done or instruments made, is to continue to have effect;

                     (c)  any modifications subject to which an instrument made, or a class of instruments made, is to continue to have effect.

             (6)  Despite subsections 12(2) and (3) of the Legislative Instruments Act 2003, regulations made for the purposes of this section:

                     (a)  may be expressed to take effect from a date before the regulations are registered under that Act; and

                     (b)  may provide for a determination of a kind referred to in subsection (5) to take effect from a date before the determination is made (including a date before the regulations are registered under that Act).

             (7)  If a relevant amendment does not commence on the FSR commencement, this section applies in relation to that amendment as if references in the other provisions of this section, and in the definitions in section 1443, to “the FSR commencement” were instead references to the commencement of the relevant amendment.

             (8)  In this section:

matters of a transitional, saving or application nature includes, but is not limited to, matters related to any of the following:

                     (a)  how a matter that arose or existed under the old legislation is to be dealt with under the new legislation;

                     (b)  the significance for the purposes of the new legislation of a matter that arose or existed under the old legislation;

                     (c)  how a process started but not completed under the old legislation is to be dealt with;

                     (d)  the preservation of concessions or exemptions (however described) that existed under the old legislation;

                     (e)  interpreting references to matters in terms of the new legislation so as to include references to matters in terms of the old legislation (including that legislation as it continues to have effect because of provisions of Division 1), and vice versa;

                      (f)  any other matters that are prescribed by regulations made for the purposes of this paragraph.

1445  ASIC determinations may deal with transitional, saving or application matters

             (1)  ASIC may, by legislative instrument, make a determination dealing with matters of a transitional, saving or application nature relating to the relevant amendments and the transition from the application of the old legislation to the application of the new legislation. Determinations for this purpose may make such provision as is necessary to take account of the fact that, because of Division 1, different provisions of the amended Corporations Act start applying (and different provisions of the old legislation stop applying) in relation to different people, things and matters at different times.

             (2)  A determination overrides any inconsistent regulations made for the purposes of section 1444, other than any such regulations that are expressed to have effect despite anything in a determination under this section (in which case, the determination is of no effect, to the extent of the inconsistency).

             (3)  A determination is of no effect to the extent that it is inconsistent with:

                     (a)  a provision of Division 1; or

                     (b)  a regulation or determination made under a provision of Division 1, other than any such regulation or determination (the other instrument) that is expressed to have effect subject to anything in a determination under this section (in which case, the other instrument is of no effect, to the extent of the inconsistency).

             (4)  Without limiting subsection (1), a determination may provide for a matter to be dealt with, wholly or partly, in any of the following ways:

                     (a)  by applying (with or without modifications) to the matter:

                              (i)  provisions of a law of the Commonwealth; or

                             (ii)  provisions of a repealed or amended law of the Commonwealth, in the form that those provisions took before the repeal or amendment; or

                            (iii)  a combination of provisions referred to in subparagraphs (i) and (ii);

                     (b)  by otherwise specifying rules for dealing with the matter;

                     (c)  by specifying a particular consequence of the matter, or of an outcome of the matter, for the purposes of a law of the Commonwealth.

             (5)  Without limiting subsections (1) and (4), a determination may provide for the continued effect after the FSR commencement, for the purposes of the new legislation, of a thing done or instrument made, or a class of things done or instruments made, before the FSR commencement, under or for the purposes of the old legislation. In the case of an instrument, or class of instruments, a determination may (either when providing for the continued effect of the instrument or instruments or at a later time) provide for the instrument or instruments, as continuing to have effect, to have effect subject to modifications.

             (6)  Without limiting subsection (5), a determination for the purposes of that subsection may permit all or any of the following matters to be determined in writing by a specified person, or by a person included in a specified class of persons:

                     (a)  the identification of a thing done or instrument made, or a class of things done or instruments made, that is to continue to have effect;

                     (b)  the purpose for which a thing done or instrument made, or a class of things done or instruments made, is to continue to have effect;

                     (c)  any modifications subject to which an instrument made, or a class of instruments made, is to continue to have effect.

             (7)  If a relevant amendment does not commence on the FSR commencement, this section applies in relation to that amendment as if references in the other provisions of this section, and in the definitions in section 1443, to “the FSR commencement” were instead references to the commencement of the relevant amendment.

             (8)  In this section:

matters of a transitional, saving or application nature includes, but is not limited to, matters related to any of the following:

                     (a)  how a matter that arose or existed under the old legislation is to be dealt with under the new legislation;

                     (b)  the significance for the purposes of the new legislation of a matter that arose or existed under the old legislation;

                     (c)  how a process started but not completed under the old legislation is to be dealt with;

                     (d)  the preservation of concessions or exemptions (however described) that existed under the old legislation;

                     (e)  interpreting references to matters in terms of the new legislation so as to include references to matters in terms of the old legislation (including that legislation as it continues to have effect because of provisions of Division 1), and vice versa;

                      (f)  any other matters that are prescribed by regulations made for the purposes of this paragraph.

Part 10.3Transitional provisions relating to the Corporations Legislation Amendment Act 2003

  

1447  Application of sections 601AB and 601PB

                   If a company or responsible entity had an obligation to lodge an annual return before the commencement of items 31 and 36 of Schedule 1 to the Corporations Legislation Amendment Act 2003, sections 601AB and 601PB continue to apply to the annual return, as if the amendments made by those items had not been made.

1448  Application of amendments made by Schedule 4 to the Corporations Legislation Amendment Act 2003

                   If, at the time the amendments made by Schedule 4 to the Corporations Legislation Amendment Act 2003 commence:

                     (a)  a company is required to lodge a notice under a provision amended by Schedule 4; and

                     (b)  the time within which the company must lodge the notice has not expired;

the amendments made by Schedule 4 apply to the company’s requirement to lodge the notice.

Part 10.4Transitional provisions relating to the Financial Services Reform Amendment Act 2003

  

1449  Definition

                   In this Part:

amending Act means the Financial Services Reform Amendment Act 2003.

1450  Application of Part 10.2 to Chapter 7 as amended by Schedule 2 to the amending Act

             (1)  Subject to subsection (2), the provisions of Division 1 of Part 10.2 (including regulations and determinations made for the purposes of that Division, and the powers given by that Division to deal with matters in regulations and determinations) also apply to the provisions of Chapter 7 as amended by Schedule 2 to the amending Act.

Note:          Division 1 of Part 10.2 deals with the phasing‑in of the new financial services regime.

             (2)  However, subsection (1) does not produce the result that a provision of Chapter 7 as amended, added or inserted by an amendment in Schedule 2 to the amending Act applies in relation to a person, matter or circumstance:

                     (a)  at a time that is before the commencement of the amendment; or

                     (b)  contrary to section 1451.

             (3)  The powers given by Division 2 of Part 10.2 to deal with matters in regulations and determinations apply in relation to the provisions of Chapter 7 as amended by Schedule 2 to the amending Act as if the amendments in Schedule 2 to the amending Act were relevant amendments for the purposes of that Division. However (in addition to subsections 1444(2) and 1445(3)) such regulations and determinations are of no effect to the extent that they are inconsistent with section 1451.

1451  Provisions relating to the scope of the amendments of Chapter 7 made by Schedule 2

Application of amendments of section 916F

             (1)  The amendments made by items 37, 38 and 39 of Schedule 2 to the amending Act do not apply to authorisations made before the commencement of the amendment, unless the relevant 10 day period for notification has not ended by the commencement of the items.

             (2)  The amendment made by item 40 of Schedule 2 to the amending Act applies to revocations made after the commencement of the item.

Application of certain amendments of sections 952B and 953A

          (2A)  The amendments made by items 53A and 58A of Schedule 2 to the amending Act apply in relation to the giving of Financial Services Guides after the commencement of the items.

Application of amendments of section 981H

             (3)  The amendments made by items 62 and 63 of Schedule 2 to the amending Act apply, after the commencement of those items, to money paid to a person before that commencement as mentioned in subsection 981H(1), even if an agreement referred to in subsection 981H(2) was in force in relation to the money immediately before that commencement.

Application of certain amendments of section 1016A

          (3A)  The amendments made by items 77A, 77B and 78C of Schedule 2 to the amending Act apply in relation to applications for financial products, and applications to become a standard employer‑sponsor, whether made before or after the commencement of the items.

Application of amendments of sections 1016B to 1016E

          (3B)  The amendments made by items 78D to 78T of Schedule 2 to the amending Act apply in relation to Product Disclosure Statements whether prepared or given before or after the commencement of the items.

Application of amendment of section 1017D

             (4)  The amendment made by item 88 of Schedule 2 to the amending Act does not apply to statements prepared before the commencement of the item.

Application of amendments of section 1017E

             (5)  The amendments made by items 89 and 90 of Schedule 2 to the amending Act apply, after the commencement of those items, to money paid to a person before that commencement as mentioned in subsection 1017E(1), even if an agreement referred to in subsection 1017E(2B) was in force in relation to the money immediately before that commencement.

Application of amendments of section 1020E

             (6)  The amendment made by item 91 of Schedule 2 to the amending Act does not apply to disclosure documents or statements prepared before the commencement of the item.

             (7)  The amendments made by items 91A, 91B and 91C of Schedule 2 to the amending Act apply to disclosure documents or statements, and to advertisements or statements of a kind referred to in subsection 1018A(1) or (2), whether prepared, given or published before or after the commencement of the items.

Application of certain amendments of sections 1021B and 1022A

             (8)  The amendments made by items 95F and 96K of Schedule 2 to the amending Act apply in relation to the giving of Product Disclosure Statements after the commencement of the items.

1452  Amendments of section 1274

             (1)  The amendment made by item 101 of Schedule 2 to the amending Act applies to documents even if they were lodged before the commencement of the item.

             (2)  The amendment made by item 102 of Schedule 2 to the amending Act removes a reference to a repealed provision. However, the amendment does not produce the result that a document that was lodged under that provision when it was in force now becomes available for inspection under section 1274.

Part 10.5Transitional provisions relating to the Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004

  

1453  Definitions

                   In this Part:

amending Act means the Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004.

old Act means this Act as in force immediately before the commencement day.

Schedule 1 commencement means the day on which Schedule 1 to the Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 commences.

Schedule 4 commencement means the day on which Schedule 4 to the Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 commences.

Schedule 5 commencement means the day on which Schedule 5 to the Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 commences.

Schedule 8 commencement means the day on which Schedule 8 to the Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 commences.

1454  Audit reforms in Schedule 1 to the amending Act (auditing standards and audit working papers retention rules)

                   Sections 307A, 307B and 989CA apply to:

                     (a)  an audit of the financial report for a financial year; or

                     (b)  an audit or review of the financial report for a half‑year in a financial year;

if the financial year begins on or after 1 July 2004.

1455  Audit reforms in Schedule 1 to the amending Act (adoption of auditing standards made by accounting profession before commencement)

             (1)  The regulations may provide that a standard specified in the regulations (as in force from time to time) is to have effect, for the purposes of this Act, as if it had been made by the AUASB under section 336 on the day specified in the regulations.

             (2)  The standard must be one made or issued by the Australian Accounting Research Foundation before the Schedule 1 commencement on behalf of CPA Australia and The Institute of Chartered Accountants in Australia.

             (3)  The regulations may provide that the standard is to have effect as if it specified that it applies to periods ending, or starting, on or after a date specified in the standard.

             (4)  Standards prescribed under subsection (1) do not have effect as auditing standards:

                     (a)  in relation to financial reports for periods ending after 30 June 2006; or

                     (b)  in relation to financial reports for periods ending after a later date specified by regulations made for the purposes of subsection (1) before 30 June 2006.

             (5)  A person does not commit an offence based on a contravention of section 307A, subsection 308(3A) or 309(5A) or section 989CA because an audit or review is not conducted in accordance with, or does not include a statement or disclosure required by, an auditing standard prescribed under subsection (1) if the audit or review is conducted in relation to a financial report for a period ending before that standard ceases to have effect as an auditing standard.

Note:          This subsection does not prevent, however, other action being taken on the basis of the failure to comply with the auditing standard (for example, the person’s failure to comply with the standard being referred to the Companies Auditors and Liquidators Disciplinary Board).

1456  Audit reforms in Schedule 1 to the amending Act (new competency standard provisions)

                   If an application by a person for registration as a registered company auditor:

                     (a)  is lodged with ASIC before the Schedule 1 commencement; and

                     (b)  has not been determined before that day;

section 1280 of the old Act continues to apply to the application despite the amendments made by the amending Act.

1457  Audit reforms in Schedule 1 to the amending Act (new annual statement requirements for auditors)

             (1)  The requirement under section 1287A for a registered company auditor to lodge an annual statement applies from the first anniversary of the auditor’s registration that occurs on or after 1 January 2005.

             (2)  The first annual statement lodged under section 1287A should cover the period commencing either:

                     (a)  immediately after the period covered by the last triennial statement; or

                     (b)  the day on which the auditor was registered;

whichever is later, and ending on the first anniversary of registration occurring on or after 1 January 2005.

1458  Audit reforms in Schedule 1 to the amending Act (imposition of conditions on existing registration as company auditor)

                   ASIC may impose conditions on a person’s registration as a company auditor under section 1289A even if the registration took effect before the Schedule 1 commencement.

1459  Audit reforms in Schedule 1 to the amending Act (application of items 62 and 63)

                   The amendments made by items 62 and 63 of Schedule 1 to the amending Act apply to periods that start on or after 1 January 2005.

1460  Audit reforms in Schedule 1 to the amending Act (non‑audit services disclosure)

                   Subsections 300(11B) to (11E) apply to an audit of the financial report for a financial year if the financial year begins on or after 1 July 2004.

1461  Audit reforms in Schedule 1 to the amending Act (auditor appointment)

             (1)  Section 324AC applies to all appointments of firms as auditor (including an appointment that was made before the Schedule 1 commencement).

             (2)  The appointment of a person as auditor of a company or registered scheme made before the Schedule 1 commencement under section 327 or 331AB of the old Act remains valid and effective despite the repeal of that section.

             (3)  An approval by ASIC that is in force under subsection 324(12) of the old Act immediately before the Schedule 1 commencement has effect on and after the Schedule 1 commencement as if it had been given under section 324B.

1462  Audit reforms in Schedule 1 to the amending Act (auditor independence)

             (1)  Section 307C applies to a financial report for financial years that start on or after 1 July 2004.

             (2)  Division 3 of Part 2M.4 applies to:

                     (a)  an audit of the financial report for a financial year; or

                     (b)  an audit or review of the financial report for a half‑year in a financial year;

if the financial year begins on or after 1 July 2004.

          (2A)  The following provisions of the old Act continue to apply to an audit of the financial report for a financial year, or an audit or review of the financial report for a half‑year in a financial year, if the financial year begins before 1 July 2004:

                     (a)  subsections 324(1) to (6) (inclusive) (other than paragraphs 324(1)(d) and (2)(d) and (e));

                     (b)  subsection 324(11);

                     (c)  subsection 327(4);

                     (d)  section 331AA (other than paragraphs 331AA(1)(d) and (2)(d) and (e)).

Subsection 331AA(4) of the old Act continues to apply as if the references in that subsection to subsections 324(7), (8), (9), (10) and (16) were omitted.

             (3)  Division 3 of Part 2M.4 applies to all relationships that exist on or after the Schedule 1 commencement between an auditor and an audited body (including a relationship that exists because of circumstances that came into existence before the Schedule 1 commencement).

             (4)  Without limiting subsection (3), the items in the table in subsection 324CH(1) apply to circumstances that exist on or after the Schedule 1 commencement (including circumstances that exist because of events that occurred before the Schedule 1 commencement).

             (5)  Item 9 of the table in subsection 324CE(5) applies to a person who ceases to be a professional employee of the individual auditor concerned on or after the Schedule 1 commencement.

             (6)  Item 10 of the table in subsection 324CE(5) applies to a person who ceases to own the business of the individual auditor concerned on or after the Schedule 1 commencement.

             (7)  Item 11 of the table in subsection 324CF(5) applies to a person who ceases to be a member of the audit firm concerned on or after the Schedule 1 commencement.

             (8)  Item 12 of the table in subsection 324CF(5) applies to a person who ceases to be a professional employee of the auditor firm concerned on or after the Schedule 1 commencement.

             (9)  Item 11 of the table in subsection 324CG(9) applies to a person who ceases to be an officer of the audit company concerned on or after the Schedule 1 commencement.

           (10)  Item 12 of the table in subsection 324CG(9) applies to a person who ceases to be a professional employee of the audit company concerned on or after the Schedule 1 commencement.

           (11)  Section 324CI applies only if the relevant departure time for the purposes of that section occurs on or after the Schedule 1 commencement.

           (12)  Section 324CJ applies only if the relevant departure time for the purposes of that section occurs on or after the Schedule 1 commencement.

           (13)  Section 324CK applies to a person only if:

                     (a)  the person is on the Schedule 1 commencement, or becomes after the Schedule 1 commencement, a member of the audit firm concerned or a director of the audit company concerned; and

                     (b)  becomes an officer of the audited body concerned on or after the Schedule 1 commencement.

1463  Audit reforms in Schedule 1 to the amending Act (auditor rotation)

                   Division 5 of Part 2M.4 applies to:

                     (a)  an audit of the financial report for a financial year; or

                     (b)  an audit or review of the financial report for a half‑year in a financial year;

if the financial year begins on or after 1 July 2006.

1464  Audit reforms in Schedule 1 to the amending Act (listed company AGMs)

                   The amendments made by Part 5 of Schedule 1 to the amending Act apply to AGMs at which financial reports for financial years that commence on or after 1 July 2004 are considered.

1465  Schedule 2 to the amending Act (financial reporting)

             (1)  The amendments made by Part 1 of Schedule 2 to the amending Act apply to directors’ declarations in relation to financial reports for financial years that start on or after 1 July 2004.

             (2)  The amendments made by Part 2 of Schedule 2 to the amending Act apply to directors’ reports for financial years that start on or after 1 July 2004.

             (3)  The amendments made by Part 3 of Schedule 2 apply to financial reports lodged with ASIC on or after 1 January 2004.

1466A  Schedule 2A to the amending Act (true and fair view)

                   The amendments made by Schedule 2A to the amending Act apply to directors’ reports for periods that start on or after 1 July 2004.

1466  Schedule 3 to the amending Act (proportionate liability)

                   The amendments made to this Act and the Trade Practices Act 1974 by Schedule 3 to the amending Act apply to causes of action that arise on or after the day on which that Schedule commences.

1467  Schedule 4 to the amending Act (enforcement)

             (1)  The amendments made by Part 2 of Schedule 4 apply to all disclosures made on or after the day on which this Act receives the Royal Assent (including a disclosure of information about circumstances that arose before that day).

             (2)  Section 206BA applies to disqualifications from managing corporations that occur because of convictions on or after the Schedule 4 commencement.

             (3)  The amendments made by Part 4 of Schedule 4 to the amending Act apply in relation to a contravention of a financial services civil penalty provision that occurs on or after the day on which this Act receives the Royal Assent.

1468  Schedule 5 to the amending Act (remuneration of directors and executives)

             (1)  Subject to subsections (2) and (3), the amendments made by Schedule 5 to the amending Act apply to financial years commencing on or after 1 July 2004.

             (2)  The amendments made by items 4, 4A and 5 of Schedule 5 to the amending Act apply to an agreement only if the agreement is entered into on or after the Schedule 5 commencement.

             (3)  The amendments made by items 6, 7 and 8 of Schedule 5 to the amending Act apply to remuneration reports for financial years that start on or after 1 July 2004.

1469  Schedule 6 to the amending Act (continuous disclosure)

             (1)  The amendments made by Part 1 of Schedule 6 to the amending Act apply in relation to a contravention of subsection 674(2) or 675(2) that occurs on or after the day on which this Act receives the Royal Assent.

             (2)  The amendments made by Part 2 of Schedule 6 to the amending Act apply in relation to a failure by a disclosing entity to comply with subsection 674(2) or 675(2) that occurs on or after the day on which this Act receives the Royal Assent.

1470  Schedule 7 to the amending Act (disclosure rules)

             (1)  The amendments made by Part 1 of Schedule 7 to the amending Act apply to a disclosure document for an offer of securities if the disclosure document is lodged with ASIC on or after the day on which this Act receives the Royal Assent.

             (2)  The amendments made by Part 2 of Schedule 7 to the amending Act apply to a Product Disclosure Statement that is required to be given on or after the day on which this Act receives the Royal Assent.

             (3)  The amendment made by items 10 and 11 of Schedule 7 to the amending Act applies to an offer of debentures that is made on or after the day on which this Act receives the Royal Assent.

             (4)  Section 708A applies to an offer of securities for sale that is made on or after the day on which this Act receives the Royal Assent.

             (5)  Section 1012DA applies to:

                     (a)  a recommendation situation if the relevant conduct (within the meaning of subsection 1012A(2)); and

                     (b)  a sale situation if the relevant conduct (within the meaning of subsection 1012C(2));

occurs on or after the day on which this Act receives the Royal Assent.

1471  Schedule 8 to the amending Act (shareholder participation and information)

             (1)  The amendments made by items 1 to 6, 13 and 17 of Schedule 8 to the amending Act apply to a notice of a meeting of a company’s members that is given after 30 September 2004.

             (2)  The amendments made by items 7 to 12 and 14 of Schedule 8 to the amending Act apply to an appointment of a proxy that is made on or after the Schedule 8 commencement.

          (2A)  The amendment made by item 14A of Schedule 8 to the amending Act applies to reports for financial years that start on or after 1 July 2004.

             (3)  The amendment made by item 15 of Schedule 8 to the amending Act applies to a directors’ report for a financial year that starts on or after 1 July 2004.

             (4)  The amendment made by item 16 of Schedule 8 to the amending Act applies to a report referred to in subsection 314(1) for a financial year that starts on or after 1 July 2004.

Part 10.8Transitional provisions relating to the Corporations Amendment (Takeovers) Act 2007

  

1478  Application of amendments of the takeovers provisions

             (1)  The amendments made by Schedule 1 to the Corporations Amendment (Takeovers) Act 2007 apply in relation to an application under section 657C (including any review under section 657EA of the decision made on the application) if:

                     (a)  the application under section 657C is made on or after the commencement of that Schedule; or

                     (b)  the application under section 657C was made before the commencement of that Schedule but the Panel has not finally disposed of the application before the commencement of that Schedule.

For the purposes of paragraph (b), the Panel does not finally dispose of an application under section 657C until the Panel has disposed of any review under section 657EA of the decision made on the application.

             (2)  To avoid doubt, the amendments apply in relation to the application even if the circumstances to which the application relates arose before the commencement of Schedule 1 to the Corporations Amendment (Takeovers) Act 2007.

Part 10.9Transitional provisions relating to the Corporations Amendment (Insolvency) Act 2007

  

1479  Definition

                   In this Part:

amending Act means the Corporations Amendment (Insolvency) Act 2007.

1480  Schedule 1 to the amending Act (improving outcomes for creditors)

             (1)  The amendment made by item 4 of Schedule 1 to the amending Act, in so far as it relates to a company subject to a deed of company arrangement, applies if the administration that ended on the execution of the deed began on or after the day on which that item commences.

             (2)  The amendments made by items 5 to 9 of Schedule 1 to the amending Act, in so far as they relate to the winding up of a company, apply if the relevant date is on or after the day on which those items commence.

             (3)  The amendments made by items 6 to 9 of Schedule 1 to the amending Act, in so far as they relate to a company subject to a deed of company arrangement, apply if the administration that ended on the execution of the deed began on or after the day on which those items commence.

             (4)  The amendments made by items 6 to 9 of Schedule 1 to the amending Act, in so far as they relate to a company to which section 433 applies, apply if the relevant date (within the meaning of that section) is on or after the day on which those items commence.

             (5)  The amendment made by item 20 of Schedule 1 to the amending Act applies in relation to a receiver appointed on or after the day on which that item commences.

             (6)  The amendments made by items 21, 24, 25, 26 and 28 of Schedule 1 to the amending Act apply to the administrator of a company if the administrator is appointed on or after the day on which those items commence.

             (7)  The amendments made by items 30, 31, 32, 33, 35, 36, 37, 38, 39 and 40 of Schedule 1 to the amending Act apply in relation to the liquidator of a company if the winding up of the company begins on or after the day on which those items commence.

             (8)  The amendment made by item 52 of Schedule 1 to the amending Act applies in relation to a compromise or arrangement if an application relating to the compromise or arrangement was made under subsection 411(1) on or after the day on which that item commences.

             (9)  The amendments made by items 53, 54, 55, 56 and 57 of Schedule 1 to the amending Act do not apply in relation to an account opened before the day on which that item commences.

           (10)  The amendments made by items 59, 60, 61, 62 and 64 of Schedule 1 to the amending Act apply in relation to a managing controller of property of a corporation if:

                     (a)  the managing controller is appointed on or after the day on which those items commence; or

                     (b)  the managing controller enters into possession, or takes control, of property of the corporation on or after the day on which those items commence.

           (11)  Despite the amendments made by items 65 and 66 of Schedule 1 to the amending Act:

                     (a)  subsection 427(1) continues to apply, in relation to an order obtained, or an appointment made, before the day on which those items commence, as if those amendments had not been made; and

                     (b)  subsection 427(1A) continues to apply, in relation to an appointment made before the day on which those items commence, as if those amendments had not been made; and

                     (c)  subsection 427(1B) continues to apply, in relation to an entry into possession, or a taking of control, before the day on which those items commence, as if those amendments had not been made; and

                     (d)  subsection 427(4) continues to apply, in relation to a cessation before the day on which those items commence, as if those amendments had not been made.

           (12)  The amendments made by items 70, 71 and 72 of Schedule 1 to the amending Act, in so far as they relate to a company under administration, apply if the administration begins on or after the day on which those items commence.

           (13)  The amendment made by item 75 of Schedule 1 to the amending Act applies to a meeting if the meeting is convened on or after the day on which that item commences.

           (14)  The amendments made by items 87, 88, 92, 93 and 94 of Schedule 1 to the amending Act apply to a transfer or alteration that occurs on or after the day on which those items commence.

           (15)  The amendments made by items 91, 96, 97, 98, 99, 100, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111 and 112 of Schedule 1 to the amending Act apply in relation to a winding up of a company if the winding up begins on or after the day on which those items commence.

           (16)  Despite the repeal of subsection 506(4) by item 113 of Schedule 1 to the amending Act, that subsection continues to apply, in relation to the liquidators of a company where the winding up of the company began before the day on which that item commences, as if that repeal had not happened.

           (17)  Sections 434D, 434E, 434F and 434G apply in relation to persons appointed on or after the day on which those sections commence.

           (18)  Section 530 applies in relation to the liquidators of a company if the winding up of the company begins on or after the day on which that section commences.

           (19)  Section 530AA applies to persons appointed on or after the day on which that section commences.

           (20)  Subsections 571(1) and 579E(1) of the amended Act apply in relation to a group of 2 or more companies if the winding up of each company in the group begins on or after the day on which those subsections commence.

1481  Schedule 2 to the amending Act (deterring corporate misconduct)

             (1)  The amendment made by item 2 of Schedule 2 to the amending Act applies in relation to a compromise or arrangement if an application relating to the compromise or arrangement was made under subsection 411(1) on or after the day on which that item commences.

             (2)  The amendment made by item 11 of Schedule 2 to the amending Act applies in relation to a matter that appears to a person:

                     (a)  during the 6‑month period ending when that item commences; or

                     (b)  on or after the day on which that item commences;

where the relevant date is on or after the day on which that item commences.

             (3)  Section 489A applies in relation to a section 486B warrant if the warrant is issued on or after the day on which that section commences.

1482  Schedule 3 to the amending Act (improving regulation of insolvency practitioners)

             (1)  The amendment made by item 7 of Schedule 3 to the amending Act applies to an application for registration if the application was made on or after the day on which that item commences.

             (2)  Despite the amendment made by item 9 of Schedule 3 to the amending Act, subsection 1288(3) continues to apply, in relation to a 3‑year period ending before the day on which that item commences, as if that amendment had not been made.

             (3)  Subsection 1288(3) as amended by item 9 of Schedule 3 to the amending Act applies as follows:

                     (a)  in the case of a person whose first 12 months of registration ends on or after the day on which that item commences—that subsection applies in relation to:

                              (i)  the person’s first 12 months of registration; and

                             (ii)  each subsequent period of 12 months;

                     (b)  in the case of a person whose first 12 months of registration ended before the day on which that item commences—that subsection applies as if the reference in paragraph 1288(3)(a) to the day on which the person’s registration begins (the initial registration day) were a reference to the last anniversary of the initial registration day that occurred before the day on which that item commences.

For this purpose, a person’s first 12 months of registration is the period of 12 months beginning on the day on which the person’s registration begins.

             (4)  The amendment made by item 12 of Schedule 3 to the amending Act applies in relation to a decision made on or after the day on which that item commences.

1483  Schedule 4 to the amending Act (fine‑tuning voluntary administration)

             (1)  The amendments made by items 1, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 39, 40, 45, 49, 51, 52, 53, 54, 55, 56, 57, 59, 60, 61 and 62 of Schedule 4 to the amending Act, in so far as they relate to a company under administration, apply if the administration begins on or after the day on which those items commence.

             (2)  The amendments made by items 2, 3 and 4 of Schedule 4 to the amending Act apply to an appointment of an administrator if the appointment is made on or after the day on which those items commence.

             (3)  The amendment made by item 8 of Schedule 4 to the amending Act applies to a transfer or alteration that occurs on or after the day on which that item commences.

             (4)  The amendments made by items 23, 24, 25, 26 and 28 of Schedule 4 to the amending Act, in so far as they apply to a company that is, or is proposed to be, subject to a deed of company arrangement, apply if the administration that ends, or is to end, on the execution of the deed, began on or after the day on which those items commence.

             (5)  The amendments made by items 27, 29, 30, 31, 32, 33, 34, 35, 36, 39, 40, 43, 44, 46, 55, 56 and 57 of Schedule 4 to the amending Act, in so far as they relate to a company subject to a deed of company arrangement, apply if the administration that ended on the execution of the deed began on or after the day on which those items commence.

             (6)  Items 37 and 38 of Schedule 4 to the amending Act apply in relation to a company if the winding up of the company begins on or after the day on which those items commence.

             (7)  The amendments made by items 41 and 42 of Schedule 4 to the amending Act apply in relation to a company subject to a deed arrangement if the administration that ended on the execution of the deed began on or after the day on which those items commence.

             (8)  The amendments made by items 63, 65, 66, 67, 69 and 70 of Schedule 4 to the amending Act, in so far as they relate to the winding up of a company, apply if the relevant date is on or after the day on which those items commence.

             (9)  Section 440BA, in so far as it relates to a company under administration, applies if the administration begins on or after the day on which that section commences.

Note:          Section 440BA was repealed by the Personal Property Securities (Corporations and Other Amendments) Act 2010, and was replaced with a new section 440B incorporating the same substantive rules. Section 1507 preserves the operation of this subsection.

           (10)  Section 440BB does not apply to distress for rent that began to be carried out before the day on which that section commences.

Note:          Section 440BB was repealed by the Personal Property Securities (Corporations and Other Amendments) Act 2010, and was replaced with a new section 440B incorporating the same substantive rules. Section 1507 preserves the operation of this subsection.

           (11)  Subsections 442C(7) and (8), in so far as they relate to a company under administration, apply if the administration begins on or after the day on which those subsections commence.

           (12)  Subsections 442C(7) and (8), in so far as they relate to a company subject to a deed of company arrangement, apply if the administration that ended on the execution of the deed began on or after the day on which those subsections commence.

           (13)  Section 446C applies in relation to a company as follows:

                     (a)  if the company was under administration immediately before the liquidation time referred to in that section—the administration begins on or after the day on which that section commences;

                     (b)  if the company was subject to a deed of company arrangement immediately before the liquidation time referred to in that section—the administration that ended on the execution of the deed began on or after the day on which that section commences.

           (14)  Subsection 588FE(2A) applies in relation to a company if the administration referred to paragraph 588FE(2A)(b) begins on or after the day on which that subsection commences.

           (15)  Subsection 588FE(2B) applies in relation to a company if the administration that ended on the execution of the deed of company arrangement referred to in paragraph 588FE(2B)(b) began on or after the day on which that subsection commences.

Part 10.10  Transitional provisions relating to the Corporations Amendment (Short Selling) Act 2008

1484  Declarations under paragraph 1020F(1)(c) relating to short selling

             (1)  To avoid doubt, an instrument mentioned in subsection (2) that was made at a particular time was validly made under paragraph 1020F(1)(c) at that time.

             (2)  The instruments are as follows:

                     (a)  ASIC Class Order [CO 08/751], registered on the Federal Register of Legislative Instruments on 22 September 2008;

                     (b)  ASIC Class Order [CO 08/752], registered on the Federal Register of Legislative Instruments on 22 September 2008;

                     (c)  ASIC Class Order [CO 08/753], registered on the Federal Register of Legislative Instruments on 22 September 2008;

                     (d)  ASIC Class Order [CO 08/763], registered on the Federal Register of Legislative Instruments on 23 September 2008;

                     (e)  ASIC Class Order [CO 08/801], registered on the Federal Register of Legislative Instruments on 24 October 2008.

             (3)  To avoid doubt, an instrument (if any) that:

                     (a)  was made at a time:

                              (i)  after 24 October 2008; and

                             (ii)  before the commencement of this section; and

                     (b)  is of substantially the same nature as the instruments mentioned in subsection (2); and

                     (c)  was registered on the Federal Register of Legislative Instruments:

                              (i)  after 24 October 2008; and

                             (ii)  before the commencement of this section;

was validly made under paragraph 1020F(1)(c) at that time.

             (4)  This section applies on and after 19 September 2008.

             (5)  In this section:

Federal Register of Legislative Instruments means the Federal Register of Legislative Instruments established under the Legislative Instruments Act 2003.

Part 10.11Transitional provisions relating to the Corporations Amendment (No. 1) Act 2009

  

1485  Application of new subsection 206B(6)

                   The amendments made by item 2 of Schedule 1 to the Corporations Amendment (No. 1) Act 2009 apply to an order made by a court of a foreign jurisdiction on or after the commencement of that item.

1486  Application of new section 206EAA

                   The amendments made by item 3 of Schedule 1 to the Corporations Amendment (No. 1) Act 2009 apply to a disqualification under a law of a foreign jurisdiction that arises on or after the commencement of that item.

Part 10.12Transitional provisions relating to the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009

Division 1Transitional provisions relating to Schedule 1 to the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009

1487  Definitions

             (1)  In this Division:

amended Corporations Act means this Act as in force after commencement.

amending Schedule means Schedule 1 to the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009.

commencement means the day on which the amending Schedule commences.

margin lending financial service has the meaning given by subsection 1488(2).

             (2)  Terms that are used in this Division and that are defined in Division 2 of Part 7.1 have the same meanings as they are given by that Division.

1488  Application of amendments—general

             (1)  The amendments made by the amending Schedule apply in relation to a margin lending financial service that is provided on or after the day that is 12 months after commencement.

             (2)  A margin lending financial service is:

                     (a)  a dealing in a margin lending facility that was issued after commencement; or

                     (b)  the provision of financial product advice in relation to a margin lending facility that was issued after commencement.

1489  Applications of amendments—application for and grant of licences etc. authorising margin lending financial services

             (1)  Despite section 1488, during the period that:

                     (a)  starts at the start of the day that is one month after commencement; and

                     (b)  ends at the end of the day before the day that is 12 months after commencement;

subsections (2) and (3) apply.

             (2)  A person may:

                     (a)  apply under section 913A of the amended Corporations Act for an Australian financial services licence that authorises the person to provide a margin lending financial service; and

                     (b)  apply under section 914A of the amended Corporations Act for a variation of a condition of an Australian financial services licence to authorise the person to provide a margin lending financial service.

             (3)  ASIC may:

                     (a)  grant an Australian financial services licence to a person under section 913B of the amended Corporations Act that authorises the person to provide a margin lending financial service, and otherwise deal with that licence (for example, by suspending or cancelling it) under Chapter 7; and

                     (b)  impose or vary conditions on an Australian financial services licence under section 914A of the amended Corporations Act to authorise a person to provide a margin lending financial service, and otherwise deal with those conditions (for example, by revoking or varying them) under Chapter 7;

but the Australian financial services licence, condition, or variation of a condition, does not take effect until the day that is 12 months after commencement.

1490  Application of amendments—between 6 and 12 months after commencement

             (1)  Despite section 1488, the amendments made by the amending Schedule apply in relation to a margin lending financial service that is provided during the period that:

                     (a)  starts at the start of the day that is 6 months after commencement; and

                     (b)  ends at the end of the day before the day that is 12 months after commencement;

but only if, at the time the margin lending financial service is provided, subsection (2) or (3) applies to:

                     (c)  the person who provides the margin lending financial service; and

                     (d)  if the margin lending financial service is provided on behalf of another person—the person on whose behalf the margin lending financial service is provided.

             (2)  This subsection applies to a person if the person is an Australian financial services licensee and either:

                     (a)  has not applied for a condition of the licence to be varied to authorise the person to provide the margin lending financial service; or

                     (b)  has applied for a condition of the licence to be varied to authorise the person to provide the margin lending financial service, but has been notified by ASIC that the application has been refused.

             (3)  This subsection applies to a person if the person is not an Australian financial services licensee and either:

                     (a)  has not applied for an Australian financial services licence that authorises the person to provide the margin lending financial service; or

                     (b)  has applied for an Australian financial services licence that authorises the person to provide the margin lending financial service, but has been notified by ASIC that the application has been refused.

1491  Acquisition of property

             (1)  Despite section 1350, a provision of this Division does not apply, and is taken never to have applied, to the extent that the operation of the provision would result in an acquisition of property from a person otherwise than on just terms.

             (2)  In subsection (1), acquisition of property and just terms have the same meanings as in paragraph 51(xxxi) of the Constitution.

1492  Regulations

             (1)  The regulations may make provisions of a transitional, application or saving nature relating to this Division and the amendments and repeals made by the amending Schedule.

             (2)  Without limiting subsection (1), regulations made for the purpose of that subsection may modify provisions of this Act.

Division 2Transitional provisions relating to Schedule 2 to the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009

1493  Definitions

                   In this Division:

amending Schedule means Schedule 2 to the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009.

commencement means the commencement of the amending Schedule.

modify includes make additions, omissions and substitutions.

1494  Transitional provisions relating to limit on control of trustee companies

             (1)  This section applies in relation to a person and a trustee company if, immediately before the commencement of Part 5D.5, the percentage (the pre‑commencement percentage) of the person’s voting power in the trustee company exceeded 15%.

             (2)  Subject to subsection (3), Part 5D.5 applies in relation to the person and the trustee company as if paragraph 601VAA(a) specified the pre‑commencement percentage (rather than 15%).

             (3)  If, after the commencement of Part 5D.5, the percentage of the person’s voting power in the trustee company is reduced, the following provisions have effect from the time of the reduction:

                     (a)  if the reduced percentage exceeds 15%—Part 5D.5 applies in relation to the person and the trustee company as if paragraph 601VAA(a) specified the reduced percentage (rather than 15%);

                     (b)  if the reduced percentage is 15% or less—this section ceases to apply, and never again applies, in relation to the person and the trustee company.

1495  Transitional provisions relating to the amendments of Chapter 7

             (1)  This section applies to each company:

                     (a)  that is a trustee company immediately after the commencement of the first regulations made for the purpose of paragraph 601RAB(1)(b); and

                     (b)  that, at that time, holds an Australian financial services licence.

             (2)  During the period of 6 months starting on the commencement of those regulations:

                     (a)  the company’s Australian financial services licence is taken to cover the provision by the company of traditional trustee company services; and

                     (b)  section 601TAB does not apply in relation to the company; and

                     (c)  Part 7.7 does not apply in relation to traditional trustee company services provided by the company.

Note:          If the company wants to continue to provide traditional trustee company services after the end of the 6 month period, it will (before the end of that period) need to apply to ASIC to have the conditions of its licence varied to cover those services.

             (3)  To avoid doubt, subsection (2) does not limit ASIC’s powers under Part 7.6 (whether during or after the period of 6 months) in relation to the company’s Australian financial services licence.

Note:          For example, ASIC may (under Subdivision B of Division 4 of Part 7.6) impose or vary licence conditions, or may (under Subdivision C of Division 4 of Part 7.6) vary, cancel or suspend the licence.

1496  General power for regulations to deal with transitional matters

             (1)  The regulations may make provisions of a transitional, application or saving nature in relation to any of the following:

                     (a)  the transition from the regime provided for by laws of the States and Territories (as in force before commencement) relating to trustee companies to the regime provided for by this Act as amended by the amending Schedule;

                     (b)  the amendments and repeals made to this Act by the amending Schedule.

             (2)  Without limiting subsection (1), regulations made for the purpose of that subsection may modify provisions of this Act.

Division 3Transitional provisions relating to Schedule 3 to the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009

1497  Definitions

                   In this Division:

amending Schedule means Schedule 3 to the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009.

1498  Application of amendments

             (1)  The amendment made by item 1 of the amending Schedule applies to promissory notes made after the commencement of that item.

             (2)  The amendment made by item 2 of the amending Schedule applies to trustees appointed on or after the commencement of that item.

Part 10.13Transitional provisions relating to the Personal Property Securities (Corporations and Other Amendments) Act 2009

  

1499  Definitions

                   In this Part:

amending Act means the Personal Property Securities (Corporations and Other Amendments) Act 2010.

commencement time means the time item 187 of Schedule 1 to the amending Act commences.

Note:          Item 187 of Schedule 1 to the amending Act inserts sections 1499 to 1510. The item commences at the registration commencement time within the meaning of section 306 of the Personal Property Securities Act 2009 (as provided by section 2 of the amending Act).

registrable charge means a charge created before the commencement time that was a registrable charge within the meaning of section 261 when it was created.

1500  Charges, liens and pledges—continuation of restriction of references

             (1)  This section applies despite the amendment of this Act made by item 10 of Schedule 1 to the amending Act if a reference to a charge in a provision of this Act, as in force immediately before the commencement time, did not include a reference to a lien or a pledge, or any other particular form of security over the property.

Note:          Item 10 of Schedule 1 to the amending Act inserts the definition of security interest in section 51A.

             (2)  In its application in relation to an interest in property created or arising before the commencement time, or under an agreement or instrument made before that time, the reference in that provision (as amended by the amending Act) to a security interest does not include a reference to a lien or a pledge, or that particular form of security over the property, as the case may be.

1501  Charges, liens, pledges and third party property—application

                   The amendments made by Part 1 (new concepts) of Schedule 1 to the amending Act apply:

                     (a)  in relation to charges, liens and pledges, whether created or arising before, at or after the commencement time; and

                     (b)  in relation to property owned, occupied or used by, or in the possession of, a corporation, whether the ownership, occupation, use or possession started before, at or after the commencement time.

1501A  References to the whole or substantially the whole of a company’s property

             (1)  This section applies to a transitional security interest within the meaning of the Personal Property Securities Act 2009.

Note:          For the meaning of transitional security interest, see section 308 of the Personal Property Securities Act 2009.

             (2)  In working out for the purposes of this Act whether the security interest covers the whole, or substantially the whole, of the company’s property at a time (the later time) that is at or after the commencement time, disregard any of the company’s property that is PPSA retention of title property of the company at the later time.

Note:          This Act gives certain powers to secured parties who hold security interests over the whole, or substantially the whole, of a company’s property (for example, the power to appoint an administrator under section 436C).

1501B  Constructive notice of registrable charges

                   Section 130 does not apply in relation to a document that has been lodged with ASIC to the extent that the document relates to a registrable charge.

Note:          Section 130 provides that a person is not taken to have information about a company merely because the information is available to the public from ASIC.

1502  Repeal of Chapter 2K (charges)—general

             (1)  For the period of 7 years after the commencement time, the amendments made by Part 2 of Schedule 1 to the amending Act do not apply in relation to registrable charges.

Note:          The amendments made by Part 2 of Schedule 1 to the amending Act repeal Chapter 2K and make consequential amendments to other provisions.

             (2)  This section applies subject to sections 1503 to 1506.

1503  Repeal of Chapter 2K (charges)—cessation of requirements in relation to documents or notices

Scope

             (1)  This section applies if, immediately before the commencement time, a document (however described) or notice is required to be lodged or given by a company or other person under one of the following provisions:

                     (a)  paragraph 263(1)(a), (b) or (c);

                     (b)  paragraph 263(2)(b);

                     (c)  subsection 263(3);

                     (d)  paragraph 264(1)(a) or (b);

                     (e)  paragraph 265(6)(b);

                      (f)  paragraph 268(1)(a) or (b);

                     (g)  subsection 268(2);

                     (h)  subsection 269(1) or (2);

                      (i)  subsection 270(4).

Requirements that stop applying

             (2)  Whichever of the following requirements would otherwise apply stops applying at the commencement time:

                     (a)  the requirement to lodge or give the document or notice;

                     (b)  the requirement for ASIC to enter or delete particulars in the Register in relation to the document or notice.

1504  Repeal of Chapter 2K (charges)—application of section 266

             (1)  Subject to this section, section 266 stops applying at the commencement time in relation to registrable charges.

             (2)  However, if a registrable charge is void under section 266 immediately before the commencement time, that section continues to apply in relation to the charge, subject to subsection (3) of this section.

             (3)  The Court may, on such terms and conditions as seem to the Court just and expedient, by order, declare a registrable charge not to be, and never to have been, void under subsection 266(1) or (3), if:

                     (a)  before the commencement time, the charge is void under subsection 266(1) or (3) (as the case requires); and

                     (b)  either:

                              (i)  an application is made to the Court under subsection 266(4) before the commencement time for an extension of the relevant period, and as at the commencement time, the Court had not made a decision in relation to the application; or

                             (ii)  an application is made to the Court at or after the commencement time for an order under this subsection; and

                     (c)  the Court is satisfied of the matters set out in subsection 266(4).

1505  Repeal of Chapter 2K (charges)—cessation of company registration requirements

                   The requirements in section 271 (company documentation and registration of charges) stop applying in relation to registrable charges at the commencement time.

1506  Repeal of Chapter 2K (charges)—priority between registrable charges

                   At and after the commencement time, registrable charges have the priority between themselves that they would have had under this Act as in force immediately before the commencement time, subject to Chapter 9 (Transitional provisions) of the Personal Property Securities Act 2009.

1507  New section 440B (restrictions on third party property rights)

                   The repeal of sections 440B, 440BA, 440BB and 440C by item 156 of Schedule 1 to the amending Act does not affect the operation of subsections 1483(9) and (10) in relation to:

                     (a)  the administration of a company that began at or after the start of the day section 440BA commenced, and before the commencement time within the meaning of section 1499; or

                     (b)  distress for rent that began to be carried out before the day section 440BB commenced.

Note:          Sections 440BA and 440BB commenced on 31 December 2007.

1508  New subsection 442CB(1) (administrator’s duty of care)

                   The amendment of this Act by item 135 of Schedule 1 to the amending Act does not apply in relation to the exercise of a power of sale if the power began to be exercised before the commencement time.

Note:          Item 135 of Schedule 1 to the amending Act repealed subsection 442CB(1) and substituted a new subsection.

1509  New section 588FP (security interests in favour of an officer of a company etc. void)

                   Section 588FP does not apply in relation to a registrable charge.

1510  Winding up applied for before the commencement time

                   Subject to this Part, the amendments made by the amending Act do not apply in relation to the winding up of a company under Part 5.4, Part 5.4A or Part 5.4B, or the subsequent liquidation of the company, if the application for winding up for the purposes of those Parts is made before the commencement time.

Part 10.14Transitional provisions relating to the Corporations Amendment (Corporate Reporting Reform) Act 2010

  

1510A  Definition

                   In this Part:

amending Act means the Corporations Amendment (Corporate Reporting Reform) Act 2010.

1510B  Application of Part 1 of Schedule 1 to the amending Act

             (1)  The amendments made by items 1 to 4, items 11 to 16, items 18 to 23, items 29 and 30, items 32 to 42, items 45 to 47 and items 49 to 51 of Schedule 1 to the amending Act apply in relation to a company, registered scheme or disclosing entity for financial years of the company, registered scheme or disclosing entity ending on or after 30 June 2010.

          (1A)  The amendment made by item 6 of Schedule 1 to the amending Act applies in relation to a company limited by guarantee incorporated on or after the commencement of that item.

             (2)  The amendments made by items 7 and 48 of Schedule 1 to the amending Act apply in relation to dividends declared on or after the commencement of those items.

             (3)  The amendments made by items 8, 9 and 10 of Schedule 1 to the amending Act apply in relation to cancellations of paid‑up share capital that occur on or after the commencement of those items.

             (4)  Despite the amendment made by item 17 of Schedule 1 to the amending Act, accounting standards made for the purposes of subsection 295(2) of this Act that were in force immediately before the commencement of that item continue in force, after that commencement, as if they were made for the purposes of subsection 295(2) of this Act as amended by that item.

             (5)  The amendment made by item 17 of Schedule 1 to the amending Act applies to a report of a company, registered scheme or disclosing entity for financial years of the company, registered scheme or disclosing entity ending on or after 30 June 2010.

             (6)  The amendments made by items 24 to 28 of Schedule 1 to the amending Act apply in relation to a company, registered scheme or disclosing entity for financial years of the company, registered scheme or disclosing entity ending on or after 30 June 2011.

             (7)  Despite the amendment made by item 31 of Schedule 1 to the amending Act, accounting standards made for the purposes of subsection 303(2) of this Act that were in force immediately before the commencement of that item continue in force, after that commencement, as if they were made for the purposes of subsection 303(2) of this Act as amended by that item.

             (8)  The amendment made by item 31 of Schedule 1 to the amending Act applies to a report of a disclosing entity for half‑years of the disclosing entity ending on or after 30 June 2010.

             (9)  The amendments made by items 43 and 44 of Schedule 1 to the amending Act apply where the previous financial year of the company, registered scheme or disclosing entity ends on or after 30 June 2010.

Part 10.15Transitional provisions relating to the Corporations Amendment (Financial Market Supervision) Act 2010

  

1511  Definition

                   In this Part:

amending Schedule means Schedule 1 to the Corporations Amendment (Financial Market Supervision) Act 2010.

1512  Application of amendments

             (1)  The amendments made by items 2, 5 to 11, 14, 17 and 18 of the amending Schedule apply in relation to Australian market licences granted before, on or after the commencement of the amending Schedule.

             (2)  The amendments made by items 12 and 13 of the amending Schedule apply in relation to applications for an Australian market licence:

                     (a)  that were made but had not yet been decided before the day on which the amending Schedule commences; and

                     (b)  that are made on or after the commencement of the amending Schedule.

1513  Regulations may deal with transitional matters

             (1)  The regulations may make provisions of a transitional, application or saving nature relating to the amendments and repeals made by the amending Schedule.

             (2)  Without limiting subsection (1), regulations made for the purpose of that subsection may modify provisions of this Act.

Part 10.16Transitional provisions relating to the Corporations Amendment (No. 1) Act 2010

  

1516  Application of amendments

             (1)  The amendments made by items 4 to 8 of Schedule 1 to the Corporations Amendment (No. 1) Act 2010 apply in relation to requests made after the commencement of that Schedule to inspect, or receive a copy of, a register.

             (2)  The amendment made by item 9 of that Schedule applies in relation to information obtained from a register before, at or after the commencement of that Schedule.

             (3)  The amendments made by items 12 to 14 of that Schedule apply in relation to offers made after the commencement of that Schedule.

Part 10.17Transitional provisions relating to the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Act 2011

  

1517  Application of Subdivision B of Division 1 of Part 2D.3

                   Subdivision B of Division 1 of Part 2D.3 applies in relation to the setting of board limits on or after 1 July 2011.

1518  Application of sections 206J, 206K, 206L and 206M

             (1)  Section 206J applies to entry into arrangements on or after 1 July 2011, whether the remuneration was for services rendered before, on or after that day.

             (2)  Section 206K applies to contracts entered into on or after 1 July 2011.

             (3)  Sections 206L and 206M apply to recommendations made under contracts entered into on or after 1 July 2011.

1519  Application of subsection 249L(2)

                   Subsection 249L(2) as substituted by the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Act 2011 applies in relation to AGMs held on or after 1 July 2011.

1520  Application of section 250BB

                   Section 250BB applies to voting on or after 1 August 2011, whether the proxy was appointed before, on or after that day.

1521  Application of section 250BC

                   Section 250BC applies to appointments of proxies made on or after 1 August 2011.

1522  Application of section 250BD

                   Section 250BD applies in relation to voting on or after 1 August 2011, whether the matter that is the subject of the resolution relates to a time before, on or after that day.

1523  Application of subsections 250R(4) to (10)

                   Subsections 250R(4), (5), (6), (7), (8), (9) and (10) apply in relation to voting on or after 1 August 2011, whether the remuneration report concerned relates to a financial year starting before, on or after that day.

1524  Application of Division 9 of Part 2G.2

                   Division 9 of Part 2G.2 applies in relation to AGMs held on or after 1 July 2011.

Note:          This has the effect that the Division can apply in relation to a company only if both of its 2 most recent AGMs have been held on or after 1 July 2011.

1525  Application of amendments of section 300A

             (1)  The amendments of section 300A made by the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Act 2011 apply in relation to remuneration reports for financial years starting on or after 1 July 2011.

             (2)  Subsection (1) does not apply to the repeal of subsection 300A(1AAA).

Saving of regulations made for paragraph 300A(1)(f)

             (3)  The amendment of paragraph 300A(1)(f) made by the Corporations Amendment (Improving Accountability on Director and Executive Remuneration) Act 2011 does not affect the validity of any regulations in force for the purposes of that paragraph immediately before that amendment.

Part 10.18Transitional and application provisions relating to the Future of Financial Advice Measures

Division 1Provisions relating to the Corporations Amendment (Further Future of Financial Advice Measures) Act 2012

1526  Definitions

             (1)  In this Part:

amending Act means the Corporations Amendment (Further Future of Financial Advice Measures) Act 2012.

custodial arrangement has the same meaning as it has in subsection 1012IA(1), subject to subsection (2).

platform operator means the provider of a custodial arrangement, or custodial arrangements.

provider, in relation to a custodial arrangement, has the same meaning as in subsection 1012IA(1).

             (2)  The definition of custodial arrangement in subsection 1012IA(1) is to be read as if the reference in that definition to an instruction included a reference to:

                     (a)  a direction of the kind mentioned in paragraph 58(2)(d) or (da) of the Superannuation Industry (Supervision) Act 1993 that will involve the acquisition of a particular financial product, or a financial product of a particular kind; and

                     (b)  a direction of the kind mentioned in subsection 52B(4) of the Superannuation Industry (Supervision) Act 1993 that will involve the acquisition of a particular financial product, or a financial product of a particular kind.

1527  Application of best interests obligations

             (1)  The following apply in relation to the provision of personal advice to a person as a retail client on or after the application day (whether or not the advice was sought before that day):

                     (a)  Division 2 of Part 7.7A, as inserted by item 23 of Schedule 1 to the amending Act;

                     (b)  the amendments made by items 6, 7, 8, 9 and 34 of Schedule 1 to the amending Act.

             (2)  In this section:

application day, in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:

                     (a)  if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from the day specified in the notice—the day specified in the notice; or

                     (b)  if the person has not lodged such a notice—1 July 2013.

1528  Application of ban on conflicted remuneration

             (1)  Subject to subsections (2) and (3), Division 4 of Part 7.7A, as inserted by item 24 of Schedule 1 to the amending Act, does not apply to a benefit given to a financial services licensee, or a representative of a financial services licensee, if:

                     (a)  the benefit is given under an arrangement entered into before the application day; and

                     (b)  the benefit is not given by a platform operator.

             (2)  The regulations may prescribe circumstances in which that Division applies, or does not apply, to a benefit given to a financial services licensee or a representative of a financial services licensee.

             (3)  Despite subsection (1), that Division does not apply to a benefit given to a financial services licensee, or a representative of a financial services licensee, to the extent that the operation of that Division would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph of the Constitution).

             (4)  In this section:

application day:

                     (a)  in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:

                              (i)  if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from a day specified in the notice—the day specified in the notice; or

                             (ii)  in any other case—1 July 2013; and

                     (b)  in relation to any other person who would be subject to an obligation or prohibition under Division 4 of Part 7.7A if it applied, means:

                              (i)  if a notice has been lodged with ASIC in accordance with subsection 967(3) that the obligations and prohibitions imposed under Part 7.7A are to apply to the person on and from a day specified in the notice—the day specified in the notice; or

                             (ii)  in any other case—1 July 2013.

1529  Application of ban on other remuneration—volume‑based shelf‑space fees

             (1)  Subject to subsection (2), Subdivision A of Division 5 of Part 7.7A, as inserted by item 24 of Schedule 1 to the amending Act, does not apply to a benefit given to a financial services licensee, or an RSE licensee, under an arrangement entered into before the application day.

             (2)  The regulations may prescribe circumstances in which that Subdivision applies to a benefit given to a financial services licensee, or an RSE licensee, under an arrangement entered into before the application day.

             (3)  In this section:

application day:

                     (a)  in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:

                              (i)  if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from a day specified in the notice—the day specified in the notice; or

                             (ii)  in any other case—1 July 2013; and

                     (b)  in relation to any other person who would be subject to an obligation or prohibition under Subdivision A of Division 5 of Part 7.7A if it applied, means:

                              (i)  if a notice has been lodged with ASIC in accordance with subsection 967(3) that the obligations and prohibitions imposed under Part 7.7A are to apply to the person on and from the day specified in the notice—the day specified in the notice; or

                             (ii)  in any other case—1 July 2013.

1530  Regulations do not apply where an acquisition of property otherwise than on just terms would result

                   Regulations made for the purposes of subsection 1528(2) or 1529(2) do not apply to the extent that the operation of the regulations would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph).

1531  Application of ban on other remuneration—asset‑based fees on borrowed amounts

             (1)  Subdivision B of Division 5 of Part 7.7A, as inserted by item 24 of Schedule 1 to the amending Act, applies to asset‑based fees charged on or after the application day on borrowed amounts, but only to the extent that those amounts are used or to be used to acquire financial products on or after that day.

             (2)  Despite subsection (1), that Subdivision does not apply to an asset‑based fee charged on or after the application day, to the extent that the operation of that Subdivision would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph of the Constitution).

             (3)  In this section:

application day, in relation to a financial services licensee or a person acting as a representative of a financial services licensee, means:

                     (a)  if the financial services licensee has lodged notice with ASIC in accordance with subsection 967(1) that the obligations and prohibitions imposed under Part 7.7A are to apply to the licensee and persons acting as representatives of the licensee on and from the day specified in the notice—the day specified in the notice; or

                     (b)  if the person has not lodged such a notice—1 July 2013.

Division 2Provisions relating to the Corporations Amendment (Financial Advice Measures) Act 2016

1531A  Definitions

                   In this Division:

commencement day means the day on which Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 commences.

1531B  Best interests obligation

                   The amendments made by items 12, 14A and 16 of Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 apply in relation to the provision of personal advice to a person as a retail client on or after the commencement day.

1531C  Renewal notices (opt‑in requirement)

             (1)  The amendment made by item 21 of Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 applies in relation to an ongoing fee arrangement for those renewal notice days for the arrangement that occur on or after the commencement day.

             (2)  In this item:

renewal notice day for an ongoing fee arrangement has the same meaning as it has in Part 7.7A, as in force immediately before the commencement day.

1531D  Disclosure statements

                   The amendments made by items 20A, 20B and 22 of Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 apply in relation to an ongoing fee arrangement for those disclosure days for the arrangement that occur on or after the commencement day.

1531E  Conflicted remuneration

                   The amendments made by items 23 to 35 of Schedule 1 to the Corporations Amendment (Financial Advice Measures) Act 2016 apply in relation to a benefit if:

                     (a)  the benefit is one to which Division 4 of Part 7.7A applies under section 1528; and

                     (b)  the benefit is given on or after the commencement day.

Part 10.19Transitional provisions relating to the Corporations Amendment (Phoenixing and Other Measures) Act 2012

  

1532  Definition

                   In this Part:

amending Act means the Corporations Amendment (Phoenixing and Other Measures) Act 2012.

1533  Part 1 of Schedule 1 to the amending Act (winding up by ASIC)

             (1)  Paragraph 489EA(1)(a) of the Corporations Act 2001 as amended by the amending Act applies in relation to a return of particulars given to a company before, at or after the commencement of Schedule 1 to the amending Act.

             (2)  Subsection 489EA(2) of the Corporations Act 2001 as amended by the amending Act applies in relation to a review fee, if the due date for payment occurs before, on or after the day on which Schedule 1 to the amending Act commences.

             (3)  Subsection 489EA(3) of the Corporations Act 2001 as amended by the amending Act applies in relation to a reinstatement that occurs before, at or after the commencement of Schedule 1 to the amending Act.

1534  Part 2 of Schedule 1 to the amending Act (publication requirements)

             (1)  The amendment of subsection 412(1) of the Corporations Act 2001 made by Part 3 of Schedule 1 to the amending Act applies in relation to a notice published after the commencement of Schedule 1 to the amending Act.

             (2)  The amendment of subsection 436E(3) of the Corporations Act 2001 made by Part 3 of Schedule 1 to the amending Act applies in relation to a meeting convened after the commencement of Schedule 1 to the amending Act.

             (3)  The amendment of subsection 439A(3) of the Corporations Act 2001 made by Part 3 of Schedule 1 to the amending Act applies in relation to a meeting convened after the commencement of Schedule 1 to the amending Act.

             (4)  The amendment of subsection 446A(5) of the Corporations Act 2001 made by Part 3 of Schedule 1 to the amending Act applies in relation to a resolution that is taken, because of section 446A of the Corporations Act 2001, to have been passed by a company after the commencement of Schedule 1 to the amending Act.

             (5)  The amendment of subsection 449C(5) of the Corporations Act 2001 made by Part 3 of Schedule 1 to the amending Act applies in relation to a meeting convened after the commencement of Schedule 1 to the amending Act.

             (6)  The amendment of subsection 450A(1) of the Corporations Act 2001 made by the amending Act applies in relation to an appointment of an administrator that occurs after the commencement of Schedule 1 to the amending Act.

             (7)  The amendment of section 465A of the Corporations Act 2001 made by Part 3 of Schedule 1 to the amending Act applies in relation to an application made under section 459P, 462 or 464 of that Act after the commencement of Schedule 1 to the amending Act.

             (8)  The amendment of subsection 491(2) of the Corporations Act 2001 made by Part 3 of Schedule 1 to the amending Act applies in relation to a resolution passed after the commencement of Schedule 1 to the amending Act.

             (9)  The amendment of subsection 497(2) of the Corporations Act 2001 made by Part 3 of Schedule 1 to the amending Act applies in relation to a meeting convened after the commencement of Schedule 1 to the amending Act.

           (10)  The amendment of subsection 498(3) of the Corporations Act 2001 made by Part 3 of Schedule 1 to the amending Act applies in relation to an adjournment that occurs after the commencement of Schedule 1 to the amending Act.

           (11)  The amendment of subsection 509(2) of the Corporations Act 2001 made by Part 3 of Schedule 1 to the amending Act applies in relation to a meeting convened after the commencement of Schedule 1 to the amending Act.

           (12)  The amendment of subsection 568A(2) of the Corporations Act 2001 made by Part 3 of Schedule 1 to the amending Act applies in relation to a disclaimer of property, if the disclaimer occurs after the commencement of Schedule 1 to the amending Act.

           (13)  Despite the amendments of sections 589, 601AA, 601AB and 1351 of the Corporations Act 2001 made by Part 3 of Schedule 1 to the amending Act, if, before the commencement of Schedule 1 to the amending Act, ASIC gave notice of the proposed deregistration of a company in accordance with subsection 601AA(4) or 601AB(3) of the Corporations Act 2001, that Act continues to apply, in relation to the deregistration of the company, as if those amendments had not been made.

1535  Part 3 of Schedule 1 to the amending Act (miscellaneous amendments)

                   Section 600AA of the Corporations Act 2001 as amended by the amending Act applies in relation to an appointment, if the appointment occurs after the commencement of Schedule 1 to the amending Act.

Part 10.20Transitional provisions relating to the Corporations Legislation Amendment (Audit Enhancement) Act 2012

  

1536  Definitions

                   In this Part:

amending Act means the Corporations Legislation Amendment (Audit Enhancement) Act 2012.

commencement means the commencement of Schedule 1 to the amending Act.

1537  Application of amendments relating to annual transparency reports

                   The amendments made by Part 2 of Schedule 1 to the amending Act apply in relation to annual transparency reports for:

                     (a)  the first transparency reporting year that ends after commencement (even if part of that year occurs before commencement); and

                     (b)  all later transparency reporting years.

Part 10.21Transitional provision relating to the Corporations Legislation Amendment (Financial Reporting Panel) Act 2012

  

1538  Courts etc. may have regard to Financial Reporting Panel report

                   Despite the repeal of section 323EM by the Corporations Legislation Amendment (Financial Reporting Panel) Act 2012, that section continues to apply, in relation to a report of the Financial Reporting Panel, as if that repeal had not happened.

Part 10.21ATransitional provisions relating to the Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Act 2013

  

1538A  Application of amendments relating to contributions to a fund or scheme

                   The amendments made by items 1, 2 and 3 of Schedule 1 to the Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Act 2013 apply to contributions paid or payable on or after 1 July 2013.

1538B  Application of amendments relating to Statements of Advice

                   The amendments made by items 7 and 8 of Schedule 1 to the Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Act 2013 apply in relation to personal advice given on or after the commencement of those items.

Part 10.22Transitional provisions relating to the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012

  

1539  Application of section 1017BA (Obligation to make product dashboard publicly available)

                   Section 1017BA applies:

                     (a)  to the extent that it relates to MySuper products—on and after 1 July 2013; and

                     (b)  to the extent that it relates to choice products—on and after 1 July 2014.

1540  Application of subsection 1017BB(1) (Obligation to make information relating to investment of assets of superannuation entities publicly available)

                   Subsection 1017BB(1) applies in relation to the reporting day that is 30 June 2014 and to later reporting days.

1541  Application of section 1017BC (Obligation to provide information relating to investment of assets of superannuation entities)

             (1)  Section 1017BC applies in relation to arrangements entered into on or after this Act receives the Royal Assent.

             (2)  In any proceedings against a trustee of a registrable superannuation entity for an offence based on subsection 1021NB(1), it is a defence if the information would have been made publicly available but for the fact that the information was not provided to the trustee because, under this section, section 1017BC did not apply to a particular arrangement.

Note:          A defendant bears an evidential burden in relation to the matters in subsection (2). See subsection 13.3(3) of the Criminal Code.

             (3)  In any proceedings against a trustee of a registrable superannuation entity for an offence based on subparagraph 1021NB(2)(d)(ii) or (3)(d)(ii), it is a defence if there would not have been an omission from the information made publicly available but for the fact that the information omitted was not provided to the trustee because, under this section, section 1017BC did not apply to a particular arrangement.

Note:          A defendant bears an evidential burden in relation to the matters in subsection (3). See subsection 13.3(3) of the Criminal Code.

Part 10.23Transitional provisions relating to the Clean Energy Legislation (Carbon Tax Repeal) Act 2014

  

1542  Definition

                   In this Part:

designated carbon unit day has the same meaning as in Part 3 of Schedule 1 to the Clean Energy Legislation (Carbon Tax Repeal) Act 2014.

1543  Transitional—carbon units issued before the designated carbon unit day

                   Despite the amendments of this Act made by Schedule 1 to the Clean Energy Legislation (Carbon Tax Repeal) Act 2014, this Act continues to apply, in relation to carbon units issued before the designated carbon unit day, as if those amendments had not been made.

1544  Transitional—variation of conditions on Australian financial services licences

Scope

             (1)  This section applies if, as at the end of the designated carbon unit day, an Australian financial services licence is subject to a condition that authorises the financial services licensee to provide financial services in relation to financial products that are carbon units.

Variation

             (2)  After that day, subsections 914A(3), (4) and (5) do not apply in relation to a variation of the condition, if the only effect of the variation is to remove the authorisation to provide financial services in relation to financial products that are carbon units.

1545  Transitional—immediate cancellation of Australian financial services licences

                   Section 915B applies, on and after the designated carbon unit day, as if the following subsection was added at the end of the section:

Licence relating to carbon units

             (5)  ASIC may cancel an Australian financial services licence held by a person, by giving written notice to the person, if the licence only authorises the person to provide financial services that relate to financial products that are carbon units.

1546  Transitional—statements of reasons for cancellation of Australian financial services licences

                   Section 915G does not apply to a cancellation under subsection 915B(5) (as inserted by section 1545).

Part 10.23ATransitional provisions relating to the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017

Division 1Definitions

1546A  Definitions

                   In this Part:

amending Act means the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017.

commencement means the start of the day Part 1 of Schedule 1 to the amending Act commences.

education and training standards has the meaning given by section 921B.

existing provider means:

                     (a)  a person who:

                              (i)  is a relevant provider at any time between 1 January 2016 and 1 January 2019 (except a person who has ceased to be a relevant provider under subsection 1546B(4) or (5)); and

                             (ii)  is not banned, disqualified or suspended under Division 8 of Part 7.6 on 1 January 2019; or

                     (b)  a person who:

                              (i)  at any time between 1 January 2016 and 1 January 2019, provides personal advice in a foreign country to retail clients in relation to relevant financial products; and

                             (ii)  is not prohibited under the law of the foreign country from providing such advice on 1 January 2019.

foreign country includes a region, where:

                     (a)  the region is a colony, territory or protectorate of a foreign country; or

                     (b)  the region is part of a foreign country; or

                     (c)  the region is under the protection of a foreign country; or

                     (d)  a foreign country exercises jurisdiction or control over the region; or

                     (e)  a foreign country is responsible for the region’s international relations.

relevant financial products has the meaning given by section 910A.

relevant provider has the meaning given by section 910A.

Division 2Application and transitional provisions

1546B  Existing providers to meet certain education and training standards

Completion of qualifications

             (1)  An existing provider must have done either of the following by 1 January 2024:

                     (a)  met the education and training standard in subsection 921B(2);

                     (b)  completed one or more courses determined by the standards body to give the provider qualifications equivalent to that standard.

Note:          The standard in subsection 921B(2) is that a person has completed a bachelor or higher degree, or equivalent qualification, approved by the standards body, or a foreign qualification approved by the standards body.

             (2)  To avoid doubt, an existing provider may meet the education and training standard in subsection 921B(2), or complete one or more courses in accordance with paragraph (1)(b) of this section, before this section commences.

Exam

             (3)  An existing provider must have met the education and training standard in subsection 921B(3) before 1 January 2021.

Note 1:       The standard in subsection 921B(3) is that a person has passed an exam approved by the standards body.

Note 2:       ASIC must be notified when existing providers have passed the exam (see section 1546Y).

Note 3:       An existing provider is not required to meet the standard in subsection 921B(4), which is that a person has undertaken at least a year of work and training that meets the requirements set by the standards body.

Failing to meet the education and training standards

             (4)  If, at the start of 1 January 2024, a person who is an existing provider, and a relevant provider at that time, fails to comply with subsection (1), the person is taken for the purposes of this Act, after that time, to have ceased to be a relevant provider.

             (5)  If, at the start of 1 January 2021, a person who is an existing provider, and a relevant provider at that time, fails to comply with subsection (3), the person is taken for the purposes of this Act, after that time, to have ceased to be a relevant provider.

             (6)  Subsections (4) and (5) do not prevent the person again becoming a relevant provider.

Standards body may determine courses

             (7)  The standards body may, by legislative instrument, determine courses for the purposes of paragraph (1)(b).

1546C  Application of limitation on authorisation to provide personal advice and offence

Limitation on authorisation to provide personal advice

             (1)  Section 921C, as inserted by the amending Act, applies in relation to:

                     (a)  any Australian financial services licence granted on or after 1 January 2019 to a person who is not a relevant provider before that day; and

                     (b)  any authorisation given on or after that day to a person who is not a relevant provider before that day.

Note:          Section 921C provides that a person cannot be granted a licence, or be authorised, to provide certain financial advice unless the person meets certain conditions.

             (2)  Section 921C, as inserted by the amending Act, applies, on and after 1 January 2024, in relation to a person who ceases to be a relevant provider under subsection 1546B(4).

             (3)  Section 921C, as inserted by the amending Act, applies, on and after 1 January 2021, in relation to a person who ceases to be a relevant provider under subsection 1546B(5).

             (4)  Section 921C, as inserted by the amending Act, does not apply in relation to a person who is an existing provider while the person continues to be a relevant provider.

Restriction on use of terms “financial adviser” and “financial planner”

             (5)  The following provisions, as inserted by the amending Act, apply on and after 1 January 2019:

                     (a)  section 923C;

                     (b)  items 269AAA and 269AAB of the table in Schedule 3.

Note:          Those provisions relate to offences for using the terms “financial adviser” and “financial planner”.

1546D  Application of requirements relating to provisional relevant providers

                   Section 921F, as inserted by the amending Act, applies in relation to any authorisation given on or after 1 January 2019 to a person who is not a relevant provider before that day.

Note:          Section 921F sets out the requirements in relation to a person who is a provisional relevant provider.

1546E  Application of continuing professional development standard for relevant providers

             (1)  Sections 921D and 922HA, as inserted by the amending Act, apply on and after 1 January 2019.

Note:          Section 921D provides that certain relevant providers must meet the continuing professional development standard. Section 922HA requires ASIC to be notified of the day on which a financial services licensee’s CPD year is to begin.

             (2)  Sections 922HB and 922HC, as inserted by the amending Act, apply in relation to any CPD year of a financial services licensee that begins on or after 1 January 2019.

Note:          Section 922HB requires ASIC to be notified if relevant providers do not comply with the continuing professional development standard. Section 922HC requires a financial services licensee to retain evidence of the continuing professional development of relevant providers.

             (3)  Section 922N, as inserted by the amending Act, applies in relation to a request made of a person on or after 1 January 2019 for the purposes of subparagraph 922N(1)(c)(iii).

Note:          Among other things, section 922N allows a financial services licensee to ask a person to provide information relating to whether the licensee must lodge a notice under section 922HB.

             (4)  Subsection (5) applies if:

                     (a)  the first CPD year of a financial services licensee commences after 1 January 2019; and

                     (b)  before the start of the licensee’s first CPD year:

                              (i)  the licensee is a relevant provider; or

                             (ii)  a relevant provider is authorised to provide personal advice to retail clients, on behalf of the licensee, in relation to relevant financial products.

             (5)  Sections 922HB, 922HC and 922Q, as inserted by the amending Act, apply as if a reference in those sections to a financial services licensee’s CPD year included a reference to the period:

                     (a)  beginning on the later of 1 January 2019 and:

                              (i)  if subparagraph (4)(b)(i) applies—the day the licensee is granted an Australian financial services licence that covers the provision of personal advice to retail clients in relation to relevant financial products; and

                             (ii)  if subparagraph (4)(b)(ii) applies—the first day the relevant provider is authorised to provide personal advice to retail clients, on behalf of the licensee, in relation to relevant financial products; and

                     (b)  ending on the day before the licensee’s first CPD year.

Note 1:       Among other things, section 922Q requires failures of relevant providers to comply with the continuing education standard to be entered on the Register.

Note 2:       The standards body may, under subparagraph 921U(2)(a)(iv), set requirements for continuing professional development in relation to a period mentioned in subsection (5) of this section, and, in one or more determinations made under subsection 921U(3), modify the operation of a provision in Part 7.6 in relation to such a period.

1546F  Application of Code of Ethics to relevant providers

                   Sections 921E and 922HD, as inserted by the amending Act, apply on and after 1 January 2020.

Note:          Section 921E requires a relevant provider to comply with the Code of Ethics. Section 922HD requires ASIC to be notified of failures to comply with the Code of Ethics.

1546G  Application of obligations in relation to compliance schemes

             (1)  Section 921H, as inserted by the amending Act, applies on and after 15 November 2019:

                     (a)  in relation to a person who becomes a financial services licensee on or after that day; and

                     (b)  for a person who becomes a financial services licensee before that day:

                              (i)  in relation to a person who becomes a relevant provider on or after that day; and

                             (ii)  in relation to a person who becomes a relevant provider before that day as if subsection 921H(2) required the scheme to cover the relevant provider by 1 January 2020.

Note:          Section 921H requires a financial services licensee to ensure that a compliance scheme covers each of its relevant providers.

             (2)  Section 921J, as inserted by the amending Act, applies on and after 15 November 2019.

Note:          Section 921J sets out when a compliance scheme covers a relevant provider.

             (3)  Sections 921K, 921Q, 921R and 921T, as inserted by the amending Act, apply on and after the day this section commences.

Note:          Section 921K provides that a monitoring body for a compliance scheme may apply to ASIC for approval of the scheme. Section 921Q provides that ASIC may request information about a compliance scheme from the monitoring body for the scheme. Section 921R provides that a monitoring body may propose to modify a scheme in certain circumstances. Section 921T requires a monitoring body to notify ASIC of certain reductions in the body’s resources or expertise.

             (4)  Sections 921L, 921M, 921N, 921P and 921S, as inserted by the amending Act, apply on and after 1 January 2020.

Note:          Sections 921L to 921N include provisions about investigations by monitoring bodies. Section 921P provides for compliance schemes to be made publicly available. Section 921S provides for the review of compliance schemes.

             (5)  Paragraphs 922E(1)(i) and 922F(1)(n), as inserted by the amending Act, apply on and after 15 November 2019 in relation to notices lodged under section 922D on or after that day.

Note:          Paragraphs 922E(1)(i) and 922F(1)(n) require notices lodged under section 922D in relation to a relevant provider to include the name of the compliance scheme that is to cover the relevant provider.

1546H  Application of obligation for standards body to publish annual report

             (1)  Section 921ZC, as inserted by the amending Act, applies on and after 1 July 2017.

             (2)  If the declaration of a body corporate to be the standards body under section 921X takes effect at a time during a financial year, the first annual report published by the standards body must cover the period beginning at that time and ending at the end of the next financial year as if that period were a financial year.

1546J  Application of obligation to notify ASIC about a person who becomes a relevant provider

                   Sections 922D, 922E and 922F, as inserted by the amending Act, apply (subject to subsection 1546G(5) and sections 1546K to 1546N) in relation to a person who becomes a relevant provider if:

                     (a)  the person becomes a relevant provider after commencement; or

                     (b)  both of the following apply:

                              (i)  the person becomes a relevant provider before commencement;