ASIC has remade two class orders relating to mortgage offset accounts and factoring arrangements, which were due to expire (‘sunset’) on 1 October 2017. Two new instruments have been made to continue the relief provided by these class orders:
- ASIC Corporations (Mortgage Offset Accounts) Instrument 2017/795, replacing Class Order [CO 03/1048] Mortgage offset accounts.
- ASIC Corporations (Factoring Arrangements) Instrument 2017/794, replacing Class Order [CO 04/239] Factoring arrangements: Licensing, hawking and disclosure relief.
The relief was remade following public consultation through Consultation Paper 286 Remaking ASIC class orders on mortgage offset accounts and factoring arrangements (CP 286), issued in June 2017.
CP 286 sought feedback on ASIC’s proposal to continue the relief in [CO 03/1048] and [CO 04/239] with minor changes to reflect market developments and ensure the relief applies in the intended way.
We did not receive any submissions in response to the proposals outlined in CP 286.
Background
Under the Legislation Act 2003, legislative instruments such as class orders 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.