ASIC has today released a consultation paper proposing to remake ASIC Class Order [CO 04/899] Definition of ‘senior manager’–modification. This is due to expire (‘sunset’) on 1 October 2017.
This Class Order provides disclosure relief for an offer of securities to a director or secretary.
The Corporations Act contains exceptions to disclosure obligations for an offer of securities to a person associated with a body or responsible entity. A ‘senior manager’ is one type of person associated with a body or responsible entity.
[CO 04/899] ensures that these disclosure exceptions apply as if the definition of ‘senior manager’ were modified to include a director or secretary.
ASIC has found this class order is operating effectively and efficiently, and continues to form a necessary and useful part of the legislative framework.
Consultation Paper 285 Remaking ASIC class order on disclosure relief for an offer to a director or secretary: [CO 04/899] (CP 285) outlines ASIC’s rationale for proposing to remake [CO 04/899]. We have published a draft ASIC instrument with CP 285.
Download: CP 285
Sunsetting class orders
Under the Legislation Act 2003, all class orders are repealed automatically or ‘sunset’ after a period of time (mostly 10 years) unless we take action to preserve them.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.
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.
Submissions to CP 285 are due by 30 June 2017.
© Australian Securities & Investments Commission. Reproduced with permission.