media release (20-225MR)

ASIC remakes two ‘sunsetting’ class orders relating to credit

Published

ASIC has remade ASIC Class Order [CO 10/381] relating to notification requirements for unlicensed carried over instrument (COI) lenders which was due to end on 1 October 2020.

The new instrument, ASIC Credit (Notice Requirements for Unlicensed Carried Over Instrument Lenders) Instrument 2020/834, continues to impose an obligation on unlicensed COI lender to notify ASIC when they become an unlicensed COI lender.

ASIC has also remade ASIC Class Order [10/1230] relating to credit disclosure obligations which was due to end on 1 April 2021.

The new instrument, ASIC Credit (Electronic Precontractual Disclosure) Instrument 2020/835, continues relief allowing credit providers to give pre-contractual disclosure in the same manner as they give other disclosure documents under regulation 28L of the National Consumer Credit Protection Regulations 2010.  

The relief was remade following public consultation through Consultation Paper 331 Remaking ASIC class orders on unlicensed COI lenders and credit disclosure obligations (CP 331), issued in July 2020. ASIC did not receive any submissions in response to CP 331.

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Background 

Under the Legislation Act 2003, legislative instruments such as class orders 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. 

Read more about sunsetting of legislative instruments.

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