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16-048MR ASIC consults on addressing 'sunsetting' dollar disclosure class orders
ASIC has today released a consultation paper proposing to maintain relief that ASIC has previously provided from certain obligations under the Corporations Act 2001 to state various costs, fees, charges expenses and interests as amounts in dollars in certain disclosure documents. The consultation paper also sets out ASIC's proposal to withdraw some relief.
This consultation paper is part of ASIC's response to the 'sunsetting' of legislative instruments. The class orders considered in the consultation paper are due to expire ('sunset') on 1 October 2016 or 1 April 2017.
The instruments which ASIC proposes to remake are:
- Class Order [CO 04/1431] Dollar disclosure: Cost of derivatives, foreign exchange contracts, general insurance products and life risk insurance products;
- Class Order [CO 04/1433] Dollar disclosure: Non-monetary benefits and interests; and
- Class Order [CO 04/1435] Dollar disclosure: Amounts denominated in a foreign currency.
ASIC has reviewed these class orders and considers that they are operating effectively and efficiently, and continue to form a necessary and useful part of the legislative framework. The fundamental policy principles that underpin the three class orders have not changed.
Consultation Paper 253 proposes remaking all three class orders into a single instrument so that the substantive effect of the relief in each class order is continued beyond the expiration date in a new legislative instrument. A draft of the proposed new legislative instrument is attached to the consultation paper.
The class orders proposed to be repealed are:
- Class Order [CO 04/1430] Dollar disclosure: Unknown facts or circumstances; and
- Class Order [CO 04/1432] Dollar disclosure: Interest payable on deposit products.
ASIC proposes to repeal [CO 04/1430] and [CO 04/1432] because ASIC has formed the preliminary view that these class orders have limited use and do not form a necessary and useful part of the regulatory framework.
Submissions on CP 253 are due on 30 March 2016.
Under the Legislative Instruments Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to preserve them.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.