ASIC has today released a consultation paper proposing to remake its class order on share and interest purchase plans. The class order is due to expire ('sunset') on 1 October 2019.
ASIC proposes to remake the class order, as in our view it is operating effectively and efficiently, and it continues to form a necessary and useful part of the legislative framework. The fundamental policy principles that underpin the class order have not changed.
The new instrument would continue the relief currently given by [CO 09/425] Share and interest purchase plans without significant changes, so that the ongoing effect will be preserved without any disruption to the entities that rely on it.
Consultation Paper 304 Remaking ASIC class order on share and interest purchase plans (CP 304) outlines ASIC's rationale for proposing to remake the instrument. CP 304 invites submissions as to:
- whether the class order is currently operating effectively and efficiently; and
- whether the conditions of relief should remain unchanged.
Submissions on CP 304 are due on 2 November 2018.
Background
Under the Legislative Instruments Act 2003, all class orders are repealed automatically or 'sunset' after a period of time (mostly 10 years) unless we take action to preserve them.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.
Where an instrument is considered to be operating effectively and efficiently and still serves a regulatory purpose we will consult on remaking it even if there will be no significant changes.