ASIC has today released a consultation paper proposing to maintain relief that ASIC has previously provided from certain obligations under the Corporations Act 2001. The consultation paper also sets out ASIC's proposal to withdraw some relief. This consultation paper is part of ASIC's response to the 'sunsetting' of legislative instruments.
Read more about sunsetting of legislative instruments
The instruments which ASIC proposes to remake are:
- Class Order [CO 02/281] Dematerialised securities traded on Austraclear, and
- Class Order [CO 02/312] Part 7.11, Division 4 financial products for ASTC.
ASIC has found these class orders are operating effectively and efficiently, and continue to form a necessary and useful part of the legislative framework. ASIC is therefore proposing that these class orders will continue in operation. However, ASIC is proposing to reduce the application of [CO 02/281], so that it no longer provides relief for e-notes. This refinement is consistent with legislative amendments made in 2009 in respect of promissory notes.
The class orders proposed to be repealed are:
- Class Order [CO 00/2449] ASX Online—relief from paper lodgement, and
- Class Order [CO 02/1296] ASX managed investment warrants—FSR Act transition.
ASIC proposes to repeal [CO 00/2449] because ASIC does not consider this class order necessary to fulfil the policy objective of facilitating lodgement through ASX Online. The repeal should not be construed as requiring the lodgement of paper documents.
ASIC proposes to repeal [CO 02/1296] because ASIC has formed the preliminary view that this class order is no longer required and does not form a necessary and useful part of the regulatory framework.
Consultation Paper 236 Remaking ASIC class orders on dematerialised securities and CHESS units of foreign securities (CP 236) outlines the class orders to be remade and the class orders to be repealed.
Each class order has been redrafted using ASIC’s current style and format, while preserving the effect of the existing instruments. The draft ASIC instruments, which reflect the amendments proposed in the consultation paper, are available on our website at www.asic.gov.au/cp under CP 236.
Submissions on CP 236 are due on 21 September 2015.
Background
Under the Legislative Instruments Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them.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.
Where an instrument is considered to be operating effectively and efficiently and still serves a regulatory purpose we will consult on remaking it even if there will be no significant changes.