Today, ASIC released a consultation paper proposing to remake two class orders that are due to expire (‘sunset’) on April and October 2016.

ASIC proposes to remake these class orders without significant changes before they sunset, so that their ongoing effect will be preserved without any disruption to the entities who rely on them.

Class Orders on Superannuation

ASIC is proposing to remake class orders that broadly:

• Provide relief to streamline the intra-fund transfer process [CO 04/1574] - Application form and cooling-off relief for certain transfers of members between financial products and interests within a superannuation fund, due to sunset on 1 April 2016.
• Provide relief to streamline the product disclosure statement regime for members who choose their own superannuation investment strategy [CO 06/636] - Superannuation: Delivery of product disclosure for investment strategies, due to sunset on 1 October 2016.

Consultation Paper 232 Remaking ASIC Class Orders on Superannuation (CP 232) proposes both Class Orders be remade so that the substantive effect of the relief in each Class Order is continued beyond the expiration date in a new legislative instrument. For both Class Orders our preliminary position is that minor and technical changes be made to the terms of the relief.

Drafts of the proposed new legislative instruments are attached to the consultation paper.

Submissions to CP 232 are due by 7 August 2015.

Background

Under the Legislative Instruments Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them.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.

All government organisations are responsible for considering whether the legislative instruments they have made that are due to sunset will be relevant after their sunset date.

Read more about Sunsetting class orders