ASIC Class Order [CO 00/1791]

Overview

ASIC Class Order [CO 00/1791], enacted in 2000 under the Corporations Act 2001, was introduced by the Australian Securities and Investments Commission (ASIC) to amend and update existing class orders concerning financial services and markets. This legislative instrument specifically aims to address discrepancies and update terminology in the original Class Order [CO 00/1115], ensuring consistency and clarity in financial regulations. The policy objective of this variation is to maintain the integrity and effectiveness of financial market oversight by making necessary adjustments to the existing regulatory framework. The amendments are designed to reflect changes in legal terminology and to correct minor errors in the original order, thereby facilitating better compliance and enforcement of financial laws.

Scope and Application

ASIC Class Order [CO 00/1791] operates under section 601QA(1)(a) of the Corporations Act 2001, and it applies to financial products, financial services, and markets within Australia. The class order was initially made on 6 September 2000 and subsequently amended on 15 December 2000, as detailed in [CO 00/2421]. The order aims to regulate and standardise the conduct of financial services providers, including authorised financial markets and financial product issuers, to ensure transparency, fairness, and efficiency in the financial sector. The application of this class order is nationwide, encompassing all states and territories within Australia. Notably, the order does not specify any particular exclusions or exemptions from its application, suggesting that it broadly applies to all entities involved in financial services unless otherwise provided by specific provisions or subordinate instruments. The class order extends its regulatory reach through various subordinate instruments, which may further define and refine its application and scope.

Key Provisions

The ASIC Class Order [CO 00/1791] modifies Class Order [CO 00/1115] under section 601QA(1)(a) of the Corporations Act 2001. Specifically, it makes three amendments to the original Class Order. Firstly, it replaces the word "then" with "the" in paragraph (c)(ii) of Schedule B. Secondly, it changes "old law" to "old Law" in paragraph 1 of Schedule C. Lastly, it updates the date from "30 September 2000" to "31 March 2001" in the paragraph titled "Interpretation". These changes aim to refine the language and correct the date to ensure the order aligns with the most recent legal standards and terminology. This variation imposes specific obligations on the entities governed by the Class Order. For instance, the alteration of "then" to "the" in Schedule B, paragraph (c)(ii), may impact how certain conditions or requirements are interpreted within the regulated environment. Similarly, changing "old law" to "old Law" in Schedule C, paragraph 1, might affect the referencing of previous legislative provisions, ensuring consistency and clarity in legal references. Lastly, updating the date from "30 September 2000" to "31 March 2001" in the "Interpretation" paragraph could influence the applicability of certain provisions, requiring regulated entities to align their practices accordingly. Failing to adhere to the provisions of the ASIC Class Order [CO 00/1791] may result in various consequences. The Corporations Act 2001 outlines potential civil or criminal penalties for non-compliance with class orders. For example, breaches of class orders may lead to fines, with the maximum penalty depending on the severity of the breach and any applicable jurisdictional guidelines. Additionally, persistent non-compliance might result in more severe consequences, including legal action or sanctions against the entities involved. It is essential for entities governed by the Class Order to ensure they understand and implement the amended provisions to avoid such repercussions.