ASIC today released a consultation paper proposing to remake a class order on employee redundancy funds that is due to expire ('sunset') in October 2016.

Read more about sunsetting of legislative instruments

The class order proposed to be remade is Class Order [CO 02/314] Employee redundancy funds: relief.

ASIC proposes to remake this class order to extend relief until 1 October 2017.

Consultation Paper 238 Remaking ASIC class order on employee redundancy funds: [CO 02/314] (CP 238) outlines ASIC's proposals to remake [CO 02/314] to extend relief for a limited period and our rationale for remaking it.

[CO 02/314] has been redrafted using ASIC's current style and format, while preserving the current effect without any significant changes. 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 238.

Submissions on CP 238 are due on 2 October 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Under the Legislative Instruments Act 2003, all class orders are repealed automatically or 'sunset' after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them.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.