ASIC today issued Class Order [CO 11/1287] Extension of period for compliance with breach reporting conditions in CO 08/1 . [CO 11/1287] extends the transitional period for compliance with the breach reporting condition in Class Order [CO 08/1] Group purchasing bodies until 30 June 2012. [1]

Group purchasing bodies arrange or hold cover under risk management products for others but do not issue risk management products or provide any financial product advice other than general information about the product. Group purchasing bodies include sporting and other not-for-profit organisations which arrange insurance for third parties (e.g. players or volunteers).

This extension will enable the Government to consider whether the issues raised by Group purchasing bodies are better addressed by amendments to the Corporations Regulations, and if so to consult with stakeholders in the development of the regulations

Background

[CO 08/1] gives conditional relief from the Australian financial services licensing regime and Chapter 5C of the Corporations Act 2001 for certain group purchasing bodies which arrange or hold risk management products for the benefit of third parties on a non-commercial basis.

Regulatory Guide 195 Group purchasing bodies for insurance and risk products (RG 195) explains ASIC’s policy underlying the conditional relief granted in [CO 08/1].

The breach reporting condition in [C0 08/1] provides that group purchasing bodies relying on the relief must notify ASIC in writing of matters that give the body reason to believe that it has failed, in a material respect, to comply with any of the other conditions in the relief.

[CO 11/1287] extends the transitional period for compliance with the breach reporting condition in [CO 08/1] until 30 June 2012. The transitional period for compliance with the breach reporting conditions was otherwise due to expire on 31 December 2011.

Editor's note:

On Tuesday 26 June 2012, ASIC issued Class Order [CO 12/750] Extension of period for compliance with breach reporting conditions in [CO 08/1], extending the transitional period for compliance with the breach reporting condition in Class Order [CO 08/1] Group purchasing bodies until 31 December 2012.

Download:

• ASIC Class Order [CO 11/1287] Extension of period for compliance with breach reporting conditions in CO 08/1

• ASIC Class Order [CO 08/1] Group purchasing bodies

• Regulatory Guide 195 Group purchasing bodies for insurance and other risk management products (RG 195)