ASIC today released a consultation paper proposing to remake three ASIC instruments relating to financial counsellors, which are due to expire between 1 October 2017 and April 2026.
ASIC proposes to:
- Remake, without significant changes, Class Order [CO 03/1063] Licensing relief for financial counselling agencies; and
- Remake as a single new instrument, without significant changes, Class Order [CO 11/926] Credit licensing exemptions for NGOs (non-government organisations) providing credit assistance to consumers and ASIC Credit (Financial Counselling Agencies) Instrument 2015/992.
ASIC considers that these instruments 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 class orders have not changed.
Consultation Paper 282 Remaking ASIC class orders on financial counselling licensing relief (CP 282) outlines the minor changes we are proposing to make to ensure the relief applies in the intend way. In particular, clarifying the restrictions on the persons that may not receive payments. We have published two draft ASIC instruments with CP 282.
Sunsetting class orders
Under the Legislation Act 2003, all class orders are repealed automatically or 'sunset' after a period of time (mostly 10 years) unless we take action to preserve them.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.
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.
Submissions to CP 282 are due by 15 June 2017.