ASIC today released a consultation paper proposing to remake two ASIC instruments relating to mortgage offset accounts and factoring arrangements which are due to expire on 1 October 2017.
The instruments ASIC proposes to remake without significant changes are:
- [CO 03/1048] Mortgage offset accounts
- [CO 04/239] Factoring arrangements: Licensing, hawking and disclosure relief
ASIC considers that these instruments 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.
Consultation Paper 286 Remaking ASIC class orders on mortgage offset accounts and factoring arrangements (CP 286) outlines the minor changes we are proposing to make to ensure the relief applies in the intend way. In particular the remade class orders remove the condition to hold EDR membership for relief in relation to mortgage offset accounts and clarifies the scope of relief for factoring arrangements. We have published two draft ASIC instruments with CP 286.
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Submissions to CP 286 are due by 6 July 2017.
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Under the Legislation Act 2003, all class orders are repealed automatically or 'sunset' after a period of time (mostly 10 years) unless we take action to preserve them.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.
Read more about sunsetting class orders.