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Thursday 21 April 2016

16-120MR ASIC remakes 'sunsetting' class order about financial calculators

ASIC today released updated regulatory guidance on our relief for generic financial calculators in Section D of Regulatory Guide 167 Licensing: Discretionary powers (RG 167) and Report 477 Response to submissions on CP 249 Remaking ASIC class order on generic financial calculators: [CO 05/1122].

On 30 March 2016, ASIC made a new legislative instrument to replace its class order on generic financial calculators that was due to expire ('sunset') on 1 April 2016. ASIC has remade the class order with some changes following public consultation.

The new instrument is ASIC Corporations (Generic Calculators) Instrument 2016/207. This instrument continues the relief from the provisions in the Corporations Act that would apply to the provider of a financial calculator that provides financial product advice. A change under the new instrument is that if a financial calculator makes an estimate of a future return, it must be adjusted for inflation using an assumed rate of inflation of 2.5% (the mid-point of the Reserve Bank of Australia's target range for inflation over the cycle).

Consultation process

On 22 December 2015, ASIC issued Consultation Paper 249: Remaking ASIC class order on generic financial calculators: [CO 05/1122] (CP 249). ASIC received eight submissions in response to CP 249. All of the submissions supported ASIC continuing to provide relief for providers of financial calculators.

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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Under the Legislative Instruments Act 2003, all class orders are repealed automatically or 'sunset' after a period of time (mostly 10 years) unless we take action to preserve them.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.
Last updated: 21/04/2016 12:38