ASIC today released a consultation paper proposing to remake four class orders on registered schemes, which are due to expire (‘sunset’) between 1 October 2017 and April 2018.
The instruments that ASIC proposes to remake are:
- Class Order [CO 98/50] Incorporating parts of other compliance plans;
- Class Order [CO 98/60] Protecting class rights in a managed investment scheme;
- Class Order [CO 98/1806] Related bodies corporate and external members of compliance committee; and
- Class Order [CO 98/1808] Allowing constitutions to use Appendix 15A of the ASX Listing Rules.
ASIC considers that these class orders are operating effectively and efficiently and continue to form a necessary and useful part of the legislative framework. The fundamental policy principles that underpin the class orders have not changed.
ASIC proposes to remake the relief under these class orders in a single legislative instrument so that the substantive effect of each class order is continued beyond its expiration date.
The new instrument will continue the relief currently given by the class orders without significant changes, so that the ongoing effect will be preserved without any disruption to the entities that rely on them.
In relation to Class Order [CO 98/1808], it is also proposed that the relief be extended to apply in relation to the listing rules of the Sydney Stock Exchange and may in the future apply in relation to the listing rules of other financial markets that require or allow for the constitution of a registered scheme to contain provisions similar in effect to those in Appendix 15A of the ASX Listing Rules.
Consultation Paper 270 Remaking ASIC class orders on registered schemes (CP 270) outlines ASIC's rationale for proposing to remake the class orders.
The draft ASIC instrument, which reflects the amendments proposed in the consultation paper, is available on our website under CP 270.
Submissions on CP 270 are due by 25 November 2016.
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Background
Under the Legislation Act 2003, all class orders sunset after a specified period of time (mostly ten 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.