ASIC has today released a consultation paper proposing to remake its class order on financial product advice – exempt documents. The class order is due to expire ('sunset') on 1 April 2017.
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 fundamental policy principles that underpin the class order have not changed.
The new instrument would continue the relief currently given by [CO 03/606] Financial product advice – exempt documents without significant changes, so that the ongoing effect will be preserved without any disruption to the entities that rely on it.
Consultation Paper 251 Remaking ASIC class order on Financial product advice – exempt documents (CP 251) 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 ASIC's website under CP 251.
Submissions on CP 251 are due on 18 March 2016.
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Under the Legislative Instruments Act 2003, all class orders are repealed automatically or 'sunset' after a period of time (mostly 10 years) unless we take action to preserve them.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.
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.