EXPLANATORY STATEMENT

Select Legislative Instrument 2007 No. 322

Issued by the authority of the Parliamentary Secretary to the Treasurer

Australian Securities and Investments Commission Act 2001

Australian Securities and Investments Commission Amendment Regulations 2007 (No. 3)

Subsection 251(1) of the Australian Securities and Investments Commission Act 2001 (the Act) provides that the Governor General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The amendments to the Regulations allow the Australian Securities and Investments Commission (ASIC) to disclose particular information to the Institute of Chartered Accountants in Australia, CPA Australia and the National Institute of Accountants for the purpose of paragraph 127(4)(d) of the Act.

ASIC is given certain sensitive information in confidence or in connection with the performance of its functions or the exercise of its powers under corporations legislation. Paragraph 127(4)(d) of the Act authorises the disclosure, by an authorised person, of particular information to a prescribed disciplinary body if the Chairperson of ASIC is satisfied that the information will enable or assist the disciplinary body to perform one of its functions.

The amendments to the Regulations specify the Institute of Chartered Accountants in Australia, CPA Australia and the National Institute of Accountants as prescribed disciplinary bodies for the purpose of paragraph 127(4)(d).

Under the Corporations Agreement 2002, the Commonwealth must consult with and receive approval from the Ministerial Council for Corporations before making amendments to certain provisions of the Principal Regulations. The Council has approved these amendments.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003. The Regulations commenced on the commencement of items 1 to 48 of Schedule 1 to the Corporations Amendment (Insolvency Act) 2007.

Details of the Regulations are set out in the Attachment.

ATTACHMENT A

Details of the proposed Australian Securities and Investments Commission Amendment Regulations 2007 (No. 3)

Regulation 1 – Name of Regulations

This regulation provides that the title of the Regulations is the Australian Securities and Investments Commission Amendment Regulations 2007 (No. 3).

Regulation 2 – Commencement

This regulation provides for the Regulations to commence on the commencement of items 1 to 48 of Schedule 1 to the Corporations Amendment (Insolvency) Act 2007.

Regulation 3 – Amendment of Australian Securities and Investments Commission Regulations 2001

This regulation provides that Schedule 1 amends the Australian Securities and Investments Commission Regulations 2001.

Schedule 1– Amendment

Item [1] – After Regulation 8

Paragraph 127(4)(d) of the ASIC Act allows the Chairperson of ASIC to disclose confidential information to a prescribed disciplinary body where the Chairperson is satisfied that particular information will enable or assist such a body to perform one of its functions. The regulation prescribes the Institute of Chartered Accountants in Australia, the Certified Practicing Accountants Australia and the National Institute of Accountants as prescribed disciplinary bodies that may be provided with particular information by ASIC.

Insolvency practitioners are bound by the codes of conduct and ethical standards of the professional bodies to which they belong. Those bodies also have disciplinary powers and exercise disciplinary functions. In recognition of these roles, ASIC is able to provide information obtained by it on a confidential basis to these bodies to facilitate their internal disciplinary procedures.

Item 1 inserts a new regulation 8AA in the Australian Securities and Investments Commission Regulations 2001 prescribing the Institute of Chartered Accountants in Australia, CPA Australia and the National Institute of Accountants as disciplinary bodies for the purpose of paragraph 127(4)(d) of the Act.