media release (16-339MR)

ASIC remakes and repeals 'sunsetting' class orders on markets and securities

Published

ASIC has remade ten legislative instruments and repealed three that are due to expire ('sunset') in 2016 and 2017, following public consultation.

ASIC has remade these instruments before they sunset. The new instruments will continue the substantive effects of the previous instruments with some minor amendments, which include simplifying the drafting to give greater clarity.

The following instruments have been remade:

However, ASIC has varied the application of the Corporations (Low Volume Financial Markets) Exemption Notice 2003 by increasing the transaction threshold of low volume financial markets and amending the transaction period to which the transaction threshold applies.

ASIC has also amended the application of [CO 01/1519] such that it no longer imposes certain conditions on the relief.

ASIC has repealed the following class orders, having formed the view that this relief is no longer required:

  • Class Order [CO 02/284] CHESS-approved foreign securities
  • Class Order [CO 00/2449] ASX Online—relief from paper lodgement, and
  • Class Order [CO 02/1296] ASX managed investment warrants—FSR Act transition.

Background

Under the Legislation Act 2003, legislative instruments such as class orders are repealed sunset after 10 years unless action is taken to exempt or preserve them.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.

ASIC issued Consultation Paper 262 Remaking and repealing ASIC class orders on markets and securities (CP 262) in July 2016. CP 262 sought feedback on ASIC's proposal to continue the relief in [CO 01/1519], [CO 02/313], [CO 02/608], [CO 03/957], Corporations (Low Volume Financial Markets) Exemption Notice 2003, [CO 03/826], [CO 03/911], [CO 06/682] and [CO 07/183] and repeal [CO 02/284].

Three submissions were received in relation to CP 262, which substantively supported this proposal.

ASIC issued Consultation Paper 236 Remaking ASIC class orders on dematerialised securities and CHESS units of foreign securities (CP 236) in August 2015. CP 236 sought feedback on, among other things, ASIC’s proposal to continue the relief in [CO 02/281] and to repeal [CO 00/2449] and [CO 02/1296].

Four submissions were received in relation to CP 236, which substantively supported this proposal.

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