ASIC has today released a consultation paper proposing to maintain relief that ASIC has previously provided from the requirement to obtain an Australian financial services licence for certain entities. This relief is due to expire ('sunset') on 1 April 2016.
The instrument that ASIC proposes to remake is Class Order [CO 04/1526] Securitisation special purpose vehicles.
ASIC has found the class order is operating effectively and efficiently, and continues to form a necessary and useful part of the legislative framework. However, ASIC is proposing to omit one condition on the grounds that it does not appear to be relied on. This condition currently requires an AFS licensee to enter into an irrevocable deed poll agreeing to be liable for the securitisation entity’s acts or omissions: see clause 3(a) of [CO 04/1526].
Consultation Paper 246 Remaking ASIC class order on securitisation special purpose vehicles (CP 246) outlines ASIC's rationale for proposing to remake the instrument.
The draft ASIC instrument, which reflects the amendments proposed in the consultation paper, is available on our website under CP 246.
Submissions on CP 246 are due on 29 January 2016.
Background
Under the Legislative Instruments Act 2003, all class orders expire 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.