ASIC today released a consultation paper proposing to remake a class order that is due to expire (‘sunset’) in 2018.
The instrument ASIC proposes to remake without significant changes is Class Order [CO 02/1176] Credit union member shares.
ASIC considers this instrument is operating effectively and efficiently and continues to form a necessary and useful part of the legislative framework. The fundamental policy principles that underpin the class order have not changed. No substantive changes are proposed.
Consultation Paper [283] Remaking ASIC class order on credit union member shares: [CO 02/1176] (CP 283) outlines the class order proposed to be remade as a new instrument and our rationale for remaking it.
The existing class order gives relief from:
- AFS licensing and disclosure requirements in relation to the provision of financial product advice and dealing in ‘member shares’
- The requirement to give information to members confirming the issue or redemption of these kinds of shares
The only proposed material change to the substance of the relief in [CO 02/1176] is the removal of relief in relation to dealing in member shares. We do not consider that this relief is necessary because credit unions may already be able to rely on the exemption in paragraph 766C(4) of the Corporations Act.
Submissions on CP 283 are due on 23 June 2017.
Sunsetting Class Orders
Under the Legislative Instruments Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them.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.