Explanatory Statement

Issued by the authority of the Parliamentary Secretary to the Treasurer

Select Legislative Instrument 2011 No. 142 [FRLI NO. F2011L01577]

Corporations Act 2001

Subsection 1364(1) of the Corporations Act 2001 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed by regulations, or necessary or convenient to be prescribed by such regulations for carrying out or giving effect to the Act.

Section 1280 of the Act describes the requirements for registration as an auditor with the Australian Securities and Investments Commission. Paragraph 1280(2A)(c) of the Act requires the satisfactory completion of a course in auditing prescribed by the regulations for this purpose.

Regulation 9.2.03 of the Corporations Regulations 2001 (the Principal Regulations) lists the courses prescribed under paragraph 1280(2A)(c). The Institute of Chartered Accountants in Australia (ICAA) and CPA Australia have advised changes to the names of the courses they conduct under this regulation.

The Regulations amend the Principal Regulations to reflect these name changes. Specifically, the Regulations add to the prescribed list 'Audit and Assurance in the CA Program' conducted by the ICAA and 'Advanced Audit and Assurance' in the CPA Program.

The ICAA and CPA Australia have been consulted on, and approve, the Regulations.

Under the Corporations Agreement 2002 (the Corporations Agreement), the State and Territory Governments referred their constitutional powers with respect to corporate regulation to the Commonwealth. Under subclauses 507(2) and 511(3) of the Corporations Agreement, the Commonwealth is required to consult with State and Territory Ministers of the Ministerial Council for Corporations (the Council) before making a regulation under the national law. The Council has approved the amendments and agreed to waive the period of public consultation, given the machinery nature of the amendments.

The Act specifies no other conditions that need to be satisfied before the power to make the Regulations may be exercised.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments.