The Australian Securities and Investments Commission (ASIC) has released a new Class Order exemption, [CO 03/606], relating to the requirement to hold an Australian financial services licence (AFSL) for the provision or giving of financial product advice in certain documents.
The Class Order relief exempts a person from the requirement to hold an AFSL for the provision of financial product advice where that advice is general advice, and the advice is contained in a document that is required by, and prepared by the person as a result of a requirement in the Corporations Act 2001 (the Act) or the Superannuation Industry (Supervision) Act 1993.
The relief has been provided using ASIC’s general licensing relief power under s911A(2)(l), relating to the need for an Australian Financial Services Licence, rather than specific legislative provisions regarding exempt documents.
‘ASIC has adopted this approach to provide industry with greater certainty prior to the introduction of any amendments to the exempt document provisions in the Financial Services Reform Amendment Bill’, ASIC Executive Director of Financial Services Regulation, Mr Ian Johnston said.
The Class Order relief applies to the following documents or statements:
- a statement setting out information about a reduction in share capital of the kind referred to in subsection 256C(4) of the Act; or
- a statement setting out information about a share buy-back of the kind referred to in subsections 257C(2) or 257D(2) or section 257G of the Act; or
- a statement setting out information about financial assistance given by a company to a person to acquire shares of the kind referred to in subsection 260B(4) of the Act; or
- a financial report; or
- an explanatory statement about a compromise or arrangement of the kind referred to in section 412 of the Act or a draft of such a statement of the kind referred to in subsection 411(3) of the Act; or
- a bidder’s statement, a supplementary bidder’s statement, a target’s statement or a supplementary target’s statement; or
- a document setting out information about a proposed acquisition of shares of the kind referred to in item 7 of the table in section 611 of the Act; or
- a continuous disclosure notice; or
- a disclosure document; or
- a supplementary or replacement document of a kind referred to in section 719 of the Act; or
- a document setting out information given to members of superannuation funds and others under Part 2 of the Superannuation Industry (Supervision) Regulations 1994 (SIS Regs); or
- a document setting out information about investment strategies of the kind referred to in paragraph 4.02(2)(b) of the SIS Regs.
A copy of the Class Order can be obtained from the ASIC’s Infoline by calling 1300 300 630 or from the ASIC website at www.asic.gov.au.
End of release