ASIC today released a consultation paper proposing to remake ASIC Class Order [CO 03/748] Reporting requirements under s989B. This is due to expire (‘sunset’) on 1 October 2017.
This instrument grants relief to Australian financial services licensees who are natural persons from the requirement to include in a profit and loss statement any revenues and expenses that do not relate to financial services businesses carried on by the licensees.
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 278 Remaking ASIC class order on reporting requirements for AFS licensees who are natural persons: [CO 03/748] (CP 278) outlines ASIC's rationale for proposing to remake [CO 03/748]. We have published a draft ASIC instrument with CP 278.
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Under the Legislation Act 2003, all class orders are repealed automatically or 'sunset' after a period of time (mostly 10 years) unless we take action to preserve them.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 278 are due by 20 March 2017.