ASIC today released a consultation paper proposing to remake two class orders on internet offers and hawking, and to repeal a class order on PDS obligations. All three class orders are due to expire (‘sunset’) on 1 April 2017.
The instruments that ASIC proposes to remake are:
- [CO 02/246] Offers of securities on the internet; and
- [CO 02/641] Hawking: Securities and managed investments.
Class order [CO 02/246] gives relief for foreign offerors of securities to persons outside Australia, where the offer or advertisement is accessible incidentally to Australians. Class order [CO 02/641] gives technical relief so that securities and interests in managed investment schemes are not subject to two differing hawking prohibitions.
ASIC has found these class orders are operating effectively and efficiently, and continue to form a necessary and useful part of the legislative framework. However, in remaking [CO 02/246], ASIC is proposing to update and streamline the conditions.
ASIC also proposes to repeal [CO 02/286] Obligation to provide a PDS: s1012B(4), which was originally issued to correct possible oversights in instruments issued before March 2002. We are unaware of any continuing instruments that rely on the relief provided by [CO 02/286], so that relief is now redundant.
Consultation Paper 271 Remaking and repealing ASIC class orders on internet offers, hawking and PDS obligations (CP 271) outlines ASIC's rationale for proposing to remake [CO 02/246] and [CO 02/641] and repeal [CO 02/286]. The draft ASIC instruments, which reflect any amendments proposed in the consultation paper, are available on our website under CP 271.
Sunsetting class orders
Under the Legislation Act 2003, all class orders are repealed automatically or 'sunset' after a period of time (mostly 10 years) unless we take action to preserve them.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.
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.