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15-127MR ASIC consults on addressing ‘sunsetting’ banking and insurance class orders
ASIC has today released a consultation paper proposing to remake three class orders that are due to expire (‘sunset’) between 1 October 2015 and 1 October 2017.
ASIC proposes to remake these class orders without significant changes before they sunset, so that their ongoing effect will be preserved without any disruption to the entities who rely on them. ASIC also proposes to repeal one class order that is no longer required.
Class orders on banking and insurance
ASIC is proposing to remake class orders that:
- provide relief from the requirement for a licensee to appoint a distributor of a basic deposit product as its authorised representative (Class Order [CO 04/909] Agency banking), due to sunset on 1 October 2017
- remove the requirements to include an interest rate in a Product Disclosure Statement and a termination value in a periodic statement for deposit products (Class Order [CO 05/681] Transitional relief for deposit product providers—PDSs and periodic statements), due to sunset on 1 October 2015
- provide relief from the requirement for a licensee to appoint a distributor of a general insurance product as its authorised representative (Class Order [CO 05/1070] General insurance distributors), due to sunset on 1 April 2016
Consultation Paper 230 Remaking ASIC class orders relating to banking and insurance (CP 230) outlines the minor changes we are proposing to make to these class orders, including:
- combining [CO 04/909] and [CO 05/1070] into a single instrument
- updating the name, format, legislative references and definitions
- simplifying and modernising the drafting to make the new instruments easier to understand
Drafts of the proposed new legislative instruments are attached to the consultation paper.
ASIC is proposing to repeal Class Order [CO 06/623] Relief for certain general insurers from s981B account requirements. The relief provided by this class order is otherwise available under the ordinary operation of the Corporations Act.
Submissions to CP 230 are due by 7 July 2015.
Under the Legislative Instruments Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them.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.