Following public consultation, ASIC has released new legislative instrument on dealing in underlying investments, replacing a number of class orders that are due to expire (‘sunset’).

The dealing in underlying investments class orders have been remade without significant changes so that their ongoing effect will be preserved without any disruption to those who rely on them.

ASIC has replaced the following class orders into a new legislative instrument:

• Class Order [CO 02/1161] Licensing relief (dealing) for public offer superannuation entities, which is due to sunset on 1 April 2017
• Class Order [CO 02/1073] Financial Services Guide: Dealing in underlying investments by responsible entities, which is due to sunset on 1 April 2017, and
• Class Order [CO 02/1074] Financial Services Guide: Dealing in underlying investments by superannuation trustees, which is due to sunset on 1 April 2017.

All three Class Orders have been combined into a single instrument so that the substantive effect of the relief in each Class Order is continued beyond the expiration date in a new legislative instrument.

Download ASIC Corporations (Superannuation and Schemes: Underlying Investments) Instrument 2016/378.

Background

Under the Legislative Instruments Act 2003, all class orders sunset after a specified period of time (mostly 10 years) unless we take action to exempt or 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.

All government organisations are responsible for considering whether the legislative instruments they have made that are due to sunset will be relevant after their sunset date.

Read more about sunsetting class orders.

On 4 December 2015, ASIC released Consultation Paper 244 Remaking ASIC class orders on dealing in underlying investments (CP 244) which publicly consulted on remaking the dealing in underlying investment class orders that are due to sunset in April 2017 (refer: 15-367MR). In CP 244, ASIC proposed to remake the class orders without significant changes.

Submissions received were supportive of ASIC’s proposal to remake the class orders without significant changes in the form of the draft instrument attached to the consultation paper.

The minor changes we have made to the class orders include:

• combining the effects of [CO 02/1161], [CO 02/1073] and [CO 02/1074] into a single instrument;
• updating the name, legislative references and definitions of the legislative instrument;
• reflect current drafting practice and update the format of the current instruments;
• simplify the drafting to give greater clarity;
• correct any minor drafting errors.