ASIC today released a consultation paper proposing to remake four class orders that are due to expire (‘sunset’) in 2017 and to incorporate two related class orders into one new instrument.
The class orders proposed to be remade are:
- Class Order [CO 02/260] Product Disclosure Statements: Application forms created by licensee;
- Class Order [CO 02/262] Applications to switch managed investments products;
- Class Order [CO 07/10] Technical disclosure relief for reconstructions and capital reductions (paragraphs 4 and 8); and
- Class Order [CO 02/437] Eligible applications: Relief from s1016A for managed investment products.
ASIC proposes to remake these class orders because they are operating effectively and efficiently and continue to form a necessary and useful part of the legislative framework. No substantive changes are proposed.
We are also seeking feedback on our proposals to incorporate ASIC Corporations (Options: Bonus Issues) Instrument 2016/77 and Class Order [CO 14/26] Personalised or Australian financial services licensee created application forms into the new instrument.
Consultation Paper 274 Remaking ASIC class orders on application form requirements (CP 274) outlines the class orders proposed to be remade and consolidated into one new instrument and our rationale for remaking and consolidating them.
Each proposed class order has been redrafted using ASIC’s current style and format into a single instrument, while preserving the current effect of the instruments. The draft ASIC instruments, which reflect the amendments proposed in the consultation 274.
Submissions on CP 274 are due on 2 January 2017.
Under the Legislative Instruments Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them.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.
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 substantive changes.
© Australian Securities & Investments Commission. Reproduced with permission.