ASIC has remade ten legislative instruments and repealed three that are due to expire ('sunset') in 2016 and 2017, following public consultation.
ASIC has remade these instruments before they sunset. The new instruments will continue the substantive effects of the previous instruments with some minor amendments, which include simplifying the drafting to give greater clarity.
The following instruments have been remade:
- Class Order [CO 01/1519] Disclosure of directors' interests has been remade into ASIC Corporations (Disclosure of Directors’ Interests) Instrument 2016/881.
- Class Order [CO 02/313] Part 7.11: Transfers of securities under Division 3 has been remade into ASIC Corporations (Transfers of Division 3 Securities) Instrument 2016/893.
- Class Order [CO 02/608] Warrants: Relief from PDS requirements for secondary sales and Class Order [CO 03/957] ASX managed investment warrants: Disclosure and reporting exemptions have been remade and consolidated into ASIC Corporations (Exchange-Traded Warrants) Instrument 2016/886.
- Corporations (Low Volume Financial Markets) Exemption Notice 2003 has been remade into ASIC Corporations (Low Volume Financial Markets) Instrument 2016/888.
- Class Order [CO 03/826] Market related records: Australian financial service licensees dealing on overseas markets has been remade into ASIC Corporations (Records: Dealings on Foreign Markets) Instrument 2016/889.
- Class Order [CO 03/911] Licensing relief for self-dealers who provide general product advice about own securities has been remade into ASIC Corporations (Amendment and Repeal) Instrument 2016/895.
- Class Order [CO 06/682] Multiple derivative issuers has been remade into ASIC Corporations (Exchange-Traded Derivatives: Multiple Issuers) Instrument 2016/883.
- Class Order [CO 07/183] Transfer of Australian securities traded in New Zealand has been remade into ASIC Corporations (Securities: NZ FASTER System) Instrument 2016/891.
- Class Order [CO 02/281] Dematerialised securities traded on Austraclear has been remade into ASIC Corporations (Dematerialised Securities: Austraclear) Instrument 2016/841.
However, ASIC has varied the application of the Corporations (Low Volume Financial Markets) Exemption Notice 2003 by increasing the transaction threshold of low volume financial markets and amending the transaction period to which the transaction threshold applies.
ASIC has also amended the application of [CO 01/1519] such that it no longer imposes certain conditions on the relief.
ASIC has repealed the following class orders, having formed the view that this relief is no longer required:
- Class Order [CO 02/284] CHESS-approved foreign securities
- Class Order [CO 00/2449] ASX Online—relief from paper lodgement, and
- Class Order [CO 02/1296] ASX managed investment warrants—FSR Act transition.
Background
Under the Legislation Act 2003, legislative instruments such as class orders are repealed sunset after 10 years unless action is taken 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.
ASIC issued Consultation Paper 262 Remaking and repealing ASIC class orders on markets and securities (CP 262) in July 2016. CP 262 sought feedback on ASIC's proposal to continue the relief in [CO 01/1519], [CO 02/313], [CO 02/608], [CO 03/957], Corporations (Low Volume Financial Markets) Exemption Notice 2003, [CO 03/826], [CO 03/911], [CO 06/682] and [CO 07/183] and repeal [CO 02/284].
Three submissions were received in relation to CP 262, which substantively supported this proposal.
ASIC issued Consultation Paper 236 Remaking ASIC class orders on dematerialised securities and CHESS units of foreign securities (CP 236) in August 2015. CP 236 sought feedback on, among other things, ASIC’s proposal to continue the relief in [CO 02/281] and to repeal [CO 00/2449] and [CO 02/1296].
Four submissions were received in relation to CP 236, which substantively supported this proposal.