ASIC today released a consultation paper proposing to remake six class orders that are due to expire (‘sunset’) between 2016 and 2019. The class orders relate to takeovers and schemes of arrangement.
Read more about sunsetting class orders
The class orders proposed to be remade are:
- Class Order [CO 05/850] Unsolicited offers under a regulated foreign takeover bid
- Class Order [CO 02/259] Downstream acquisitions: foreign stock markets
- Class Order [CO 00/2338] Relief from the minimum bid price principle—s621(3)
- Class Order [CO 02/249] Approved overseas financial markets—s257B(7)
- Class Order [CO 04/523] Investor directed portfolio services takeover relief, and
- Class Order [CO 09/459] Takeovers relief for accelerated rights issues.
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 234 Remaking ASIC class orders on takeovers and schemes of arrangement (CP 234) 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 234.
Submissions on CP 234 are due on 2 October 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Under the Legislative Instruments Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them.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.
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.