ASIC has released a report outlining its recent decisions on applications for relief from the financial services and managed investment provisions of the Corporations Act 2001 between 1 January and 31 March 2006.
The report, Overview of decisions on relief applications (January to March 2006), provides an overview of situations where ASIC has exercised, or refused to exercise, its exemption and modification powers, and has been expanded to include applications that relate to relief from the financial reporting, takeovers, and fundraising provisions.
‘ASIC has been releasing reports outlining its significant relief decisions relating to financial products and services since December 2004. Consistent with ASIC’s ‘Better Regulation’ initiatives released on 3 May 2006, we’ve decided to expand the coverage of the report to include applications concerning the financial reporting, takeovers and fundraising provisions,’ ASIC’s Director of Regulation, Mr John Price, said.
The report also highlights instances where ASIC adopted a no-action position regarding specified non-compliance with the provisions and features an appendix detailing the relief instruments it executed. For ease of reference, the appendix contains cross-references linking the instruments to the relevant paragraph(s) of the report.
Overview of decisions on relief applications (January to March 2006) is available from the ASIC website or by calling ASIC’s Infoline on 1300 300 630.
ASIC is vested with powers to exempt or modify the Act under the provisions of Chapters 2D (officers and employees), 2J (share buy-backs), 2L (debentures), 2M (financial reporting and audit), 5C (managed investment schemes), 6 (takeovers), 6A (compulsory acquisitions and buy-outs), 6C (information about ownership of entities), 6D (fundraising) and 7 (financial services) of the Act.
ASIC uses its discretion to vary or set aside certain requirements of the law, where the burden of complying with the law significantly detracts from its overall benefit, or where business can be facilitated without harming other stakeholders.
ASIC publishes a copy of most of the exemption and/or modification instruments issued in the ASIC Gazette.
Applying for relief
Applications for relief must be in writing and should address the requirements set out in Policy Statement 51 [PS 51]Applications for relief. Applications can be submitted electronically to firstname.lastname@example.org.
More information on applying for financial services relief.
ASIC has published previous information releases on its relief decisions including:
Information Release [IR 06/10] Latest ASIC report on financial services providers' relief applications (10 April 2006);
Information Release [IR 05/65] ASIC issues latest report on relief applications from financial service providers (21 December 2005); and
Information Release [IR 05/41] ASIC issues latest report on relief applications from financial service providers (26 July 2005).