AUSTRALIA: ASIC consults on remaking ASIC class orders on financial services disclosure

Wednesday March 23 2016

The Australian Securities and Investments Commission (ASIC) has released a consultation paper proposing to remake four class orders that are due to expire (“sunset”) in 2017.

Under the Legislative Instruments Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless ASIC take action to exempt or preserve them. This ensures that legislative instruments like class orders are kept up to date and only remain in force while they are fit for purpose and relevant.

Where an instrument is considered to be operating effectively and efficiently and still serves a regulatory purpose ASIC will consult on remaking it even if there will be no significant changes.

The class orders proposed to be remade are:

• Class Order [CO 02/1072] Product Disclosure Statements – Top up relief for managed investment schemes;
• Class Order [CO 07/10] Technical disclosure relief for reconstructions and capital reductions (paragraph 9);
• Class Order [CO 03/237] Updated information in Product Disclosure Statements; and
• Class Order [CO 03/1092] Further relief for joint Product Disclosure Statements.

ASIC proposes to remake these class orders because they are operating effectively and efficiently and continue to form a necessary and useful part of the legislative framework. No significant changes are proposed.

Click on the link above for further details.