media release

IR 07-36 ASIC’S better regulation: new regulatory documents and road map

Published

ASIC has launched new regulatory documents and a road map as part of its Better Regulation initiatives.

The launch of the new regulatory documents is marked by the release of the first documents in ASIC’s new, user-friendly regulatory guide format – Regulatory Guide 36 Licensing: Financial Product Advice and Dealing (RG 36) and Regulatory Guide 110 Share buy-backs (RG 110).

‘The new documents and road map improve the accessibility of ASIC’s regulation, making it easier for everyone to find out what decisions we’ve made and understand our approach’, said ASIC’s Executive Director of Regulation, Mr Malcolm Rodgers.

New regulatory documents

ASIC has rationalised and redesigned its regulatory documents. From today, there will only be four types of regulatory documents: consultation papers, regulatory guides, reports and information sheets. ASIC has made information more accessible by developing and user-testing new and simpler document layouts and templates.

RG 36 is an updated and re-formatted version of the ASIC Guide Licensing: Financial Product Advice and Dealing (the Advice and Deal Guide) and includes guidance previously in some ASIC frequently asked questions (labelled as ‘QFS’ on ASIC’s website). RG 110 is an updated and re-formatted version of Policy Statement 110 Share buy-backs [PS 110].

ASIC will no longer produce guides or policy statements. Both these categories of documents have been replaced by the new regulatory guide category. The old Advice and Deal Guide and PS 110 have been rewritten in the new regulatory guide format. ASIC guides will now also be numbered.

The role of QFS and their connection with other ASIC publications (such as policy statements, guides and information releases) was not always clear. In some cases, this meant ASIC’s policy and guidance on a particular topic was spread across several documents making it hard for users to find the information they wanted. Following the introduction of its new regulatory documents, ASIC will progressively remove QFSs from its website. They will be:

  • incorporated into existing regulatory guides where appropriate;
  • re-issued as new regulatory guides or information sheets; or
  • withdrawn if they are no longer required or are covered in another regulatory document.

ASIC has commenced this process with the release of RG 36.

For further information about the features of ASIC’s new regulatory document types and the changes to its regulatory documents published before 5 July 2007, please download a copy of ASIC – A guide to our regulatory documents at www.asic.gov.au/betterregulation.

For further information about the new RG 36 and RG 110 see the attachments to this release.

Road map

The regulatory road map is a web-based tool that helps people find class orders and regulatory documents on ASIC’s website. It is a subject matter index that links to regulatory documents and class orders on both general and specific topics.

To access the road map and to find out more about its features, please go to www.asic.gov.au/roadmap.

Attachment to IR 07-36

Regulatory Guide 36 Licensing: Financial Product Advice and Dealing (RG 36)

Regulatory Guide 36 Licensing: Financial Product Advice and Dealing (RG 36) provides guidance for persons who may provide financial product advice or deal in a financial product as defined in the Corporations Act 2001 (Corporations Act) and for their professional advisers (such as lawyers). It gives guidance on the meaning of ‘provide financial product advice’ and the meaning of ‘deal in a financial product’. It also provides guidance on the obligations that apply to providers of financial services.

This guidance was formerly in ASIC Guide Licensing: Financial Product Advice and Dealing (the Advice and Deal Guide). As well as being in ASIC’s new regulatory guide template, RG 36 differs from the Advice and Deal Guide in the following ways:

  • it has been updated to reflect amendments introduced by the Corporations Legislation Amendment (Simpler Regulatory System) Act 2007 and the Corporations Amendment Regulations (No 6) 2007
  • it includes guidance that was formerly in some ASIC frequently asked questions (labelled as ‘QFS’ on ASIC’s website.)

With the publication of RG 36 ASIC intends to remove the following QFS from its website:

  • QFS 5 Can related companies act under a single AFS licence?
  • QFS 6 How does the FSR licensing regime apply to me if I am acting on behalf of (a) an AFS licensee, or (b) a person who does not hold a licence because they are exempt under s911A(2)?
  • QFS 13 Do the Corporations Act licensing requirements apply only to advisers of retail consumers?
  • QFS 14 My company provides seminars on financial issues to members of the public (eg in relation to investments in shares). How are we covered by the Corporations Act?
  • QFS 18 How does the Corporations Act apply to media organisations (eg newspaper columnists, TV shows etc)?
  • QFS 19 Does the 'mere referral' exemption apply to operators of managed investment schemes?
  • QFS 45 Will a vendor of financial planning software need a licence under the Corporations Act?
  • QFS 55 What is the distinction between factual information and financial product advice?
  • QFS 102 How will the Corporations Act 2001 apply to organisations that provide technology services to financial services organisations?
  • QFS 147 What information can be provided about superannuation without requiring an AFS licence?
  • QFS 149 Do I need an AFS licence to provide tax advice?
  • QFS 162 Is providing 'ratings' or other evaluations of superannuation products financial product advice?

Download a copy of Regulatory Guide 36 Licensing: Financial Product Advice and Dealing (RG 36).

Regulatory Guide 110 Share buy-backs (RG 110).

Regulatory Guide 110 Share buy-backs (RG 110) provides guidance on how to comply with the buy-back provisions in the Corporations Act. The guide covers what information to disclose to shareholders, approval of future buy-backs and when ASIC may exempt a company from the requirement for shareholder approval for a selective buy-back.

ASIC’s policy on share buy-backs was formerly in Policy Statement 110 Share buy-backs (PS 110). As well as being in ASIC’s new regulatory guide template, RG 110 has been updated. For example, the updated RG 110 incorporates our guidance on relief to facilitate buy-backs of small parcels of shares set out in ASIC Information Release [IR 05/18] ASIC announces new limits on share buy-back relief for small parcels.

Download a copy of Regulatory Guide 110 Share buy-backs (RG 110) as amended.