SECURITIES REGISTRARS ASSOCIATION OF
AUSTRALIA INC.
ABN 52 057 832 827
Incorporated in Victoria under the Associations Incorporations Act 1981.
The liability of the Association’s members is limited.
Registration Number A0026236D
Postal address:
Telephone (02) 9943 0554
P O Box R488
Facsimile: (02) 9943 0554
Royal Exchange Sydney NSW 1225
Mobile: 0414 685 214
Website: www.sraa.asn.au
Email: sraainc@optusnet.com.au
Newsletter No. 205
3 September 2012
Contents in this issue include:
-
Agenda - Joint Meeting – 3 September 2012
-
News from Divisions - Joint NSW, SA, VIC and QLD meeting – 6 August 2012
-
State Division Meeting Dates - 2012
Meeting Chairman: Martin Jones
Secretary: John Steel
Disclaimer: This periodical Newsletter is designed to keep readers abreast with current developments. It is not intended to be
comprehensive. Readers are therefore advised that before acting on any matter arising herein, they should discuss the same
with their advisers.
SECURITIES REGISTRARS ASSOCIATION OF
AUSTRALIA INC.
ABN 52 057 832 827
Incorporated in Victoria under the Associations Incorporations Act 1981.
The liability of the Association’s members is limited.
Registration Number A0026236D
Postal address:
Telephone: (02) 9943 0554
P O Box R488
Facsimile: (02) 9943 0554
Royal Exchange, Sydney NSW 1225
Mobile: 0414 685 214
Web site: www.sraa.asn.au
Email: sraainc@optusnet.com.au
NOTICE OF MEETING
(Venues)
Victoria
New South Wales
National Australia Bank
South Australia
ASX Limited
Canberra Room
1
Level
20 Bridge Street
Sydney
(Please register at concierge desk on ground floor)
Dial in teleconference number for all parties : (02) 8298 8202 (wait till
answer) then dial passcode 3560
Date : Monday, 3 September 2012
Time: 12.30pm to 2.00pm
Meeting Chairman : Martin Jones
AGENDA
This is to be a joint Victoria, New South Wales and South Australian meeting
-
1. Notes from previous Division meeting
-
2. Modernising the Timetable for Rights Issues
-
3. CHESS Release 8.0
-
4. Other Business
1. Notes from previous Division Meeting
-3-
2. 1 ASX - Modernising the Timetable for rights issues
There was lengthy discussion on the proposed changes contained in ASX Consultation Paper, Modernising the timetable for
rights issues: Facilitating efficient and timely rights issues. Comments on the proposals were due by 14 August 2012.
The paper identified a number of potential reductions to the standard timetable for rights issues, which together could reduce
the timetable by more than a third from a maximum timetable of 26 business days to a maximum timetable of 16 business
days. The changes are:
 Reducing the period from the announcement of the rights issue to the ex date from 2 business days to 1 business
day.
 Reducing the period from the ex date including the record date from 5 business days to 3 business days.
 Reducing the period from the day after the record date to and including the date that documents are sent to
shareholders from a maximum of 4 business days to a maximum of 3 business days.
 Reducing the period from the day after the date that documents are sent to shareholders to and including the date
that applications for participation in the rights issue close from a minimum of 10 business days to a minimum of 7
business days.
 Reducing the period from the day after the date that applications for participation in the rights issue close to and
including the issue date from 6 business days to 3 business days.
Pursuant to these changes, there was considerable debate on the use of eCommunications, in response to a question received
from the Australian Shareholders Association [ASA].
The ASA is keen to encourage companies to offer all their capital raisings to all shareholders, including the smaller retail
shareholders. They expect that reduction in the minimum of 26 business days to a minimum of 16 business days, together
with some simplification of the required documentation, will reduce direct placements in favour for a more equitable offer to
all shareholders. Hence, they feel that shareholders should, where possible, take up eCommunication.
Members were advised that Digital Post Australia, a joint venture between Computershare Limited, Salmat Limited and
Zumbox Software Inc. was established in March 2012 and is available to all Australians who wish to receive postal mail
online.. It is not an Australia Post business.
In July 2012, Australia Post and Telstra announced the signing of a major deal that will see them host the postal service's
new digital mailbox service - Australia Post Digital MailBox.
We understand that Australia Post is now challenging Digital Post Australia over their use of the word “Post” for their
system.
2. Agenda Items
2.1 ASX - Modernising the Timetable for rights issues
Given the significance of the proposed changes, this item has been carried forward for further DISCUSSION.
The paper is available for viewing at http://www.asxgroup.com.au/public-consultations.htm
3. CHESS Release 8.0 – Bulletin P2012/399 and Attachment A
ASX Clearing & Settlement has advised that CHESS Release 8.0 will be released into Production in Q2 2013.
CHESS Release 8.0 will be a mandatory release which requires all systems interfaced with CHESS to be able to receive
and process any new or modified message formats without experiencing an application failure.
To facilitate these changes, ASX has issued “CHESS Release 8.0 - Business & Technical Overview” which contains detailed
workflows, descriptions, sample messages and examples.
Members are strongly encouraged to initiate analysis and assessment of changes required within their own systems.
All ASX Settlement Participants and CHESS System Vendors are required to have their CHESS Interface (“System”)
accredited for the processing of all scoped items within this release.
All enquiries should be directed to ASX Clearing and Settlement Operations via email: chesshelp@asx.com.au or by
telephone: 1800 814 051.
4. Other Business
4.1 12-190MR ASIC consults on FOFA reforms
As noted in our July Newsletter, the Australian Senate passed the government’s Future of Financial Advice [FOFA] reforms
without debate, on 20 June 2012.
The majority of industry participants were in favour of the reforms but agreed that more work was required on regulations
and ASIC guidelines in respect to the practical application.
ASIC advised that it would amend existing regulatory guidance and ASIC relief to reflect the FOFA reforms where
necessary. These consequential amendments to existing regulatory guidance “may not all occur before 1 December 2012”.
On 9 August 2012, ASIC released consultation papers [CP182 and CP183].
-4These papers contain proposed guidance for two aspects of the Future of Financial Advice (FOFA) reforms – scaled advice
and the best interests duty.
The proposed guidance is in the form of an update to Regulatory Guide 175 Licensing: Financial product advisers—conduct
and disclosure (RG 175).
The best interests duty obligations commence on 1 July 2013. Advice providers can choose to follow the requirements
earlier. If they do so, they must register with ASIC.
Submissions to CP 182 and CP 183 close on 20 September 2012.
4.2 12-195MR ASIC consults on electronic trading and releases fourth market supervision report
On 13 August 2012, ASIC published proposed rules and guidance on automated trading and released its fourth report on the
supervision of Australian financial markets and market participants.
Consultation Paper 184 Australian market structure: Draft market integrity rules and guidance on automated trading (CP
184), proposes draft rules and guidance on participant level controls for automated trading. ASIC foreshadowed this release
when it published Consultation Paper 179 Australian market structure: Draft market integrity rules and guidance (CP 179)
in June 2012 (see 12-143MR).
ASIC’s proposed rules and guidance include:
 draft new market integrity rules requiring direct control over filters and automated controls to suspend orders and/or
systems;
 draft rules that revise the process for certifying systems and reviewing changes at least yearly; and
 draft regulatory guidance on automated trading, covering issues consulted on in (CP 168), consolidated with
updated guidance currently contained in ASX guidance notes. This includes guidance on testing of systems and
filters/controls - the ability to manage highly automated trading, and stress testing of order flow.
Submissions to CP 184 close on 14 September 2012.
4.3 ASIC Custodial and Depository Services report
As reported in last month’s Newsletter, ASIC released a report into custodial and depository services in Australia following
a review of the industry, identifying a number of key risks to the safety of client assets and recommending some matters of
“good practice” that custodians and responsible entities may need to consider.
Report 291 Custodial and Depository services in Australia (REP 291) foreshadowed ASIC’s intention to consult with
industry about updating its regulatory guidance for the holding of scheme property.
Custodians have been encouraged by discussions with ASIC, although they are still concerned about the level of
responsibility the regulator has attached to them.
It is still unclear whether custodians will be required to expand their reporting duties beyond the existing anti-money
laundering standards.
ASIC is also considering the suggestion to change the term “custodian” to something that better reflects these organisations’
activities. One suggestion proposed is “depositories”
4.4 Office of the Australian Information Commissioner (OAIC)
Privacy Amendment (Enhancing Privacy Protection) Bill 2012
The Privacy Amendment (Enhancing Privacy Protection) Bill 2012 was introduced into Parliament on 23 May 2012 and was
referred to the Senate Legal and Constitutional Affairs Legislation Committee. Their report, previously due on 14 August
2012, is now due on 11 September 2012.
4.5 CHESS Participant and Registry Bulletins
See details in 3.above
Your Garden
An old Italian lived alone in New Jersey.
He wanted to plant his annual tomato garden but it was very difficult work as the ground was very hard.
His only son, Vincent, who used to help him, was in prison.
The old man wrote his son a letter and described his predicament.
“Dear Vincent, I am feeling pretty sad because it looks like I won’t be able to plant my tomato garden this year. I’m just
getting too old to be digging up a garden plot. I know if you were here my troubles would be over. I know you would be
happy to dig the plot for me, like the old days.” Love Papa.
A few days later, he received a letter from his son.
“Dear Pop, don’t dig up that garden. That’s where the bodies are buried.” Love Vinnie.
At 4am the next morning, FBI agents and local police arrived and dug up the entire area without finding any bodies.
They apologised to the old man and left.
A few days later, the old man received another letter from his son.
“Dear Pop, Go ahead and plant the tomatoes now. That’s the best I could do under the circumstances.” Love Vinnie.
-5Securities Registrars Association of Australia Inc
ABN 52 057 832 827
State Division Meeting Dates - 2012
Victorian Division
Meetings held at 12:30 pm
at: National Australia Bank
6 February
5 March
2 April
7 May
4 June
2 July
6 August
3 September
1 October
5 November
3 December
New South Wales Division
Meetings held at 12:30 pm
at: Australian Stock Exchange Ltd
Level 1
20 Bridge Street
Sydney
6 February
5 March
2 April
7 May
4 June
2 July
Queensland Division
6 February
5 March
2 April
7 May
4 June
2 July
6 August
3 September
1 October
5 November
3 December
6 August
3 September
1 October
5 November
3 December
Western Australian Division
Meetings held at 10:30 am
at: Venue to be advised
8 February
11 April
13 June
8 August
10 October
12 December
South Australian Division
Meetings held at 12:00 pm
Annual General Meeting – 30 March 2012
Committee of Management Meeting – 30 March 2012
6 February
5 March
2 April
7 May
4 June
2 July
6 August
3 September
1 October
5 November
3 December