ASIC has today released a consultation paper proposing to remake its class order on generic financial calculators. The class order is due to expire ('sunset') on 1 April 2016.
ASIC proposes to remake the class order as in our view it is operating effectively and efficiently and it continues to form a necessary and useful part of the legislative framework.
The new instrument would continue the relief currently given by [CO 05/1122] Relief for providers of generic calculators with some changes. For example, we propose that an estimate of a future return, must be adjusted for inflation.
Submissions on CP 249 are due on 12 February 2016.
Download CP 249 and draft instrument
Background
Under the Legislative Instruments Act 2003, all class orders are repealed automatically or 'sunset' after a period of time (mostly 10 years) unless we take action to preserve them.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.
Read more about sunsetting class orders
A generic financial calculator is a facility, device, table or other thing that:
- is used to make a general numerical calculation about a financial product; and
- does not advertise or promote one or more specific financial products.
Generic financial calculators are a beneficial educational tool for investors and financial consumers, providing useful financial information. Without relief from the law providers of generic financial calculators may be unable to provide this useful consumer tool.