ASIC today released a consultation paper proposing to remake and consolidate two class orders that are due to expire (‘sunset’) in 2016. The class orders relate to real estate companies.

Read more about sunsetting of legislative instruments

The class orders proposed to be remade are:

• Class Order [CO 00/213] Real estate companies, and
• Class Order [CO 05/1243] Licensing relief for valuations of real estate companies.

ASIC proposes to remake and consolidate these class orders because they are operating effectively and efficiently and continue to form a necessary and useful part of the legislative framework. No significant changes are proposed.

Consultation Paper 237 Remaking ASIC class orders on real estate companies: [CO 00/213] and [CO 05/1243] (CP 237) outlines the class orders proposed to be remade and our rationale for remaking them.

Each proposed class order has been redrafted using ASIC’s current style and format into a single instrument, while preserving the current effect of the instruments. The draft ASIC instrument, which reflects the minor amendments proposed in the consultation paper, is available on our website at www.asic.gov.au/cp under CP 237.

Submissions on CP 237 are due on 23 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Under the Legislative Instruments Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them.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.