ASIC Class Order [CO 03/1051]

Overview

The Corporations Act 2001, enacted by the Commonwealth Parliament, aims to provide a comprehensive regulatory framework governing corporate behaviour, financial markets, and financial services in Australia. It establishes the Australian Securities and Investments Commission (ASIC) as the main regulatory body responsible for enforcing and administering the Act. The overarching policy objective of the Corporations Act 2001 is to ensure that the Australian financial system is transparent, efficient, and fair, while protecting investors and consumers from misleading and deceptive conduct. The Act addresses gaps in previous legislation by consolidating and modernising the laws related to corporations, financial products and services, and securities markets. This particular legislative instrument, F2006B01665, represents a variation made by ASIC under the authority of the Corporations Act 2001, reflecting the need to update specific provisions within ASIC Class Order [CO 02/314] to remove outdated time limits.

Scope and Application

The Australian Securities and Investments Commission Corporations Act 2001, specifically under paragraphs 601QA(1)(a), 911A(2)(l), 992B(1)(a) and 1020F(1)(a), applies to the modification of existing ASIC Class Order [CO 02/314]. This legislative instrument extends its reach to entities and individuals subject to the Corporations Act, primarily focusing on corporations and financial markets within the Commonwealth jurisdiction. The variation removes the temporal limitations specified in the original order, thereby extending its applicability indefinitely beyond the previously stipulated date of 31 December 2003. The amendment ensures that the regulatory framework provided by ASIC remains effective without the constraint of an expiration date, impacting compliance and enforcement practices across the financial sector. There are no explicit exclusions or exemptions mentioned in this particular legislative instrument, and it does not reference any subordinate instruments extending or restricting its application.

Key Provisions

The Australian Securities and Investments Commission (ASIC) has exercised its power under the Corporations Act 2001 to vary ASIC Class Order [CO 02/314]. This variation is detailed in paragraphs 601QA(1)(a), 911A(2)(l), 992B(1)(a) and 1020F(1)(a) of the Act. Specifically, the variation entails the deletion of certain time-specific provisions that were originally set to expire on 31 December 2003. In practical terms, this means that the affected clauses in the second and third paragraphs of the original order will no longer have the specified expiration date, thereby potentially extending their application or relevance beyond the originally stated end date. Under the revised provisions, the obligations and requirements imposed by the ASIC Class Order [CO 02/314] remain largely unchanged in terms of their substantive content. However, the removal of the expiry date alters the temporal aspect of these obligations. Parties or entities governed by the order are now expected to comply with these requirements indefinitely, or until further notice, rather than being subject to an automatic expiration of the provisions on 31 December 2003. This variation ensures that the regulatory framework remains effective and applicable without the need for additional legislative amendments to extend the order's duration. Failure to comply with the obligations and requirements of the ASIC Class Order [CO 02/314], as varied, could lead to various legal consequences. Under the Corporations Act 2001, breaches of class orders can result in civil penalties, including fines. Additionally, persistent or severe non-compliance may attract criminal penalties, depending on the nature and seriousness of the breach. The maximum penalties for breaches of class orders can be significant, reflecting the importance of adhering to regulatory requirements set by ASIC. These penalties are intended to deter non-compliance and ensure that entities subject to the Act maintain high standards of regulatory adherence.