ASIC today released a consultation paper proposing to remake four class orders that are due to expire (‘sunset’) in 2017.

Read more about sunsetting of legislative instruments

The class orders proposed to be remade are:

• Class Order [CO 02/1072] Product Disclosure Statements – Top up relief for managed investment schemes,
• Class Order [CO 07/10] Technical disclosure relief for reconstructions and capital reductions (paragraph 9),
• Class Order [CO 03/237] Updated information in Product Disclosure Statements, and
• Class Order [CO 03/1092] Further relief for joint Product Disclosure Statements.

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 significant changes are proposed.

Consultation Paper 255 Remaking ASIC class orders on financial services disclosure (CP 255) outlines the class orders proposed to be remade and our rationale for remaking 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 minor amendments proposed in the consultation paper, are available on our website at www.asic.gov.au/cp under CP 255.

Submissions on CP 255 are due on 26 April 2016.

Background

Under the Legislative Instruments Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them.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 significant changes.