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Thursday 21 April 2016

16-121MR ASIC remakes 'sunsetting' class order on securitisation

ASIC today released updated regulatory guidance on our relief for securitisation special purpose vehicles in Section C of Regulatory Guide 167 Licensing: Discretionary powers (RG 167).

On 29 March 2016, ASIC made a new legislative instrument to replace its class order on securitisation special purpose vehicles that was due to expire ('sunset') on 1 April 2016. ASIC has remade the class order following public consultation.

The new legislative instrument is ASIC Corporations (Securitisation Special Purpose Vehicles) Instrument 2016/272.  The instrument has the same effect as relief that ASIC had granted by Class Order [CO 04/1526], with the omission of one condition on the grounds that it did not appear to be relied on. This condition previously required an AFS licensee to enter into an irrevocable deed poll agreeing to be liable for the securitisation entity’s acts or omissions.

Consultation process

On 16 December 2015, ASIC issued Consultation Paper 246 - Remaking ASIC class order on securitisation special purpose vehicles: [CO 04/1526](CP 246). CP 246 sought feedback on ASIC's proposals to continue the relief for certain securitisation entities without substantive changes. Comments closed on 29 January 2016 (refer: 15-386MR). We did not receive any submissions to CP 246. ASIC also conducted targeted industry consultation.

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Background

Under the Legislation Act 2003, all class orders are repealed automatically or 'sunset' after a period of time (mostly 10 years) unless we take action to preserve them.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

Last updated: 21/04/2016 01:49