Commonwealth act

Futures Organisations (Application For Membership) Fidelity Funds Contribution Act 1989

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Act Number

117 of 1989

Collection

act

Plain English Summary

2/10 complexity

This Act requires anyone applying to join a futures organisation (e.g., a futures exchange) to pay a one‑off “fidelity fund contribution” so new members contribute to the pool that compensates clients if a member defaults or acts dishonestly. The contribution must be at least $500 and cannot exceed regulatory caps (which the Governor‑General may set differently for different organisations). The Act operates as part of the Corporations Act framework.

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Current sections

Direct links to the current provisions in Futures Organisations (Application For Membership) Fidelity Funds Contribution Act 1989.

Futures Organisations (Application For Membership) Fidelity Funds Contribution Act 1989

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Futures Organisations (Application for Membership) Fidelity Funds Contribution Act 1989

No. 117 of 1989

An Act to impose a tax on applicants for admission to membership of certain futures organisations

[Assented to 14 July 1989]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title

This Act may be cited as the Futures Organisations (Application for Membership) Fidelity Funds Contribution Act 1989.

Commencement

This Act commences on the same day as Part 8.6 of the Corporations Act 1989.

Incorporation

The Corporations Act 1989 is incorporated, and shall be read as one, with this Act, and shall be so read as if the provisions of this Act were provisions of Part 8.6 of that Act.

Imposition of tax

The tax by the name of futures organisation (application for membership) fidelity fund contribution that is payable under subsection 1234 (1) of the Corporations Act 1989 by a person who wishes to be admitted to membership of a futures organisation as mentioned in that subsection is imposed by this Act.

Amount of tax

The amount of the tax is such amount, being not less that $500 and not more than such amount as is prescribed, as is determined by the futures organisation concerned in respect of the person or in respect of a class of persons in which the person is included.

Regulations

(1) The Governor-General may make regulations prescribing maximum amounts for the purposes of section 5.

(2) The regulations may prescribe different maximum amounts in relation to different futures organisations.

[Minister’s second reading speech made in—

House of Representatives on 25 May 1988

Senate on 14 October 1988]

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 Futures Organisations (Application For Membership) Fidelity Funds Contribution Act 1989