Commonwealth act

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This Act has been repealed and is no longer in force. It is retained for historical reference.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

118 of 1989

Collection

act

Plain English Summary

2/10 complexity

This Act creates a special tax—called a futures organisation (membership) fidelity fund contribution—that members of futures exchanges must pay to help protect traders.

What it does:

Requires members of futures organisations (exchanges where futures contracts are bought and sold) to pay money into a "fidelity fund"
A fidelity fund acts like an insurance pool that compensates people if a member becomes insolvent or commits fraud

How the tax works:

The futures organisation itself decides how much each member pays
The amount must be at least $100 but no more than a cap set by government regulations
Different futures organisations can have different maximum caps

Why it matters: This ensures that people trading in futures markets have a financial safety net if something goes wrong, with the cost carried by market participants rather than the general public.

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Current sections

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

Futures Organisations (Membership) Fidelity Funds Contribution Act 1989

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Futures Organisations (Membership) Fidelity Funds Contribution Act 1989

No. 118 of 1989

An Act to impose a tax on contributing members 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 (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 (membership) fidelity fund contribution that is payable under subsection 1234 (2) of the Corporations Act 1989 by a member of a futures organisation referred to in that subsection is imposed by this Act.

Amount of tax

The amount of the tax is such amount, being not less than $100 and not more than such amount as is prescribed, as is determined by the futures organisation concerned in respect of the contributing member or in respect of a class of contributing members of the futures organisation in which the contributing member 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 (Membership) Fidelity Funds Contribution Act 1989

Futures Organisations (Membership) Fidelity Funds Contribution Act 1989

No. 118 of 1989

An Act to impose a tax on contributing members 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 (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 (membership) fidelity fund contribution that is payable under subsection 1234 (2) of the Corporations Act 1989 by a member of a futures organisation referred to in that subsection is imposed by this Act.

Amount of tax

The amount of the tax is such amount, being not less than $100 and not more than such amount as is prescribed, as is determined by the futures organisation concerned in respect of the contributing member or in respect of a class of contributing members of the futures organisation in which the contributing member 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]