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16-034MR ASIC consults on 'sunsetting' class order about share and interest sale facilities
ASIC has today released a consultation paper proposing to remake its class order on share and interest sale facilities. The class order is due to expire ('sunset') on 1 April 2018.
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 08/10] Share and interest sale facilities without significant changes, so that the ongoing effect will be preserved without any disruption to the entities that rely on it. However ASIC is proposing to extend relief to a related body corporate of the product issuer.
Consultation Paper 252 Remaking ASIC class order on share and interest sale facilities (CP 252) 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 252.
Submissions on CP 252 are due on 18 March 2016.
Under the Legislative Instruments Act 2003, all class orders are repealed automatically or 'sunset' after a period of time (mostly 10 years) unless we take action to preserve them.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.