ASIC has today released a consultation paper proposing to repeal Class Order [CO 02/226] – Managed investment schemes – no issue required disclosure that is due to expire (‘sunset’) in 2017.
ASIC proposes to repeal this class order as, in our view, it no longer serves a regulatory purpose.
Consultation Paper 259 Repealing ASIC class order on managed investment schemes: No issue required disclosure (CP 259) outlines the class order to be repealed and our rationale for repealing it. In short, we consider the relief provided by class order is no longer legally necessary in light of other provisions of the Corporations Act 2001. However, we would welcome any feedback in relation to this proposal, including whether repealing this class order would impose a regulatory burden on businesses.
Submissions on CP 259 are due on Monday 27 June 2016.
Under the Legislation Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them.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.
Where an instrument is deemed to no longer serve a regulatory purpose we will consult on repealing it. We will repeal instruments rather than allow them to sunset so that industry is certain of our intentions and confident that where instruments are removed, this was our intention.
© Australian Securities & Investments Commission. Reproduced with permission