media release (15-148MR)

ASIC consults on remaking ASIC class orders on financial reporting

Published

ASIC has today released a consultation paper proposing to remake five class orders that are due to expire (‘sunset’) in 2015 and 2016. The class orders affect the disclosures made in financial reports and the manner in which financial reports are presented to security holders.

It is also proposed to continue an limited, technical exemption from lodging financial reports afforded to some grandfathered large proprietary companies. This exemption cures some technical drafting anomalies in the law.

Read more about sunsetting class orders

The class orders proposed to be remade are:

  • Class Order [CO 05/638] Anomalies preventing certain large proprietary companies from being grandfathered
  • Class Order [CO 05/639] Application of accounting standards by non-reporting entities
  • Class Order [CO 05/642] Combining financial reports of stapled security issuers
  • Class Order [CO 05/644] Disclosing post balance date acquisitions and disposals
  • Class Order [CO 06/441] Including different registered scheme financial reports in a single document.

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

Consultation Paper 233 Remaking ASIC class orders on financial reporting (CP 233) outlines the class orders to be remade and our rationale for remaking them.

Each class order has been redrafted using ASIC’s current style and format, while preserving the current effect of the instrument. The draft ASIC instruments, which reflect the minor amendments proposed in the consultation paper, are available on our website at www.asic.gov.au/cp under CP 233.

Submissions on CP 233 are due on 17 August 2015.

Download CP 233 and draft instruments.

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Under the Legislative Instruments Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them.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

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

Media enquiries: Contact ASIC Media Unit