ASIC Class Order [CO 04/1434]
Dollar disclosure: Transitional relief
This instrument is made under paragraphs 951B(1)(c) and 1020F(1)(a) and (c) of the Corporations Act 2001.
This compilation was prepared on 1 September 2006 taking into account amendments up to [CO 04/1527].
Prepared by the Australian Securities and Investments Commission.
Australian Securities and Investments Commission
Corporations Act 2001 — Paragraphs 951B(1)(c) and 1020F(1)(a) and (c) — Declaration, exemption and revocation
Extension of dollar disclosure transitional period
1. Under paragraphs 951B(1)(c) and 1020F(1)(c) of the Corporations Act 2001 (the Act) the Australian Securities and Investments Commission (ASIC) declares that:
(a) Part 7.7 of the Act applies in relation to each financial services licensee and each authorised representative of such a licensee as if subregulations 7.7.10A(2), (4) and (6) of the Corporations Regulations 2001 (the Regulations) were modified or varied by omitting “1 January 2005” and substituting “1 July 2005”; and
(b) Part 7.9 of the Act applies in relation to each issuer of a financial product as if subregulation 7.9.15A(2) of the Regulations were modified or varied by omitting “1 January 2005” and substituting “1 July 2005”; and
(c) Part 7.9 of the Act applies in relation to each issuer of a financial product as if subregulation 7.9.74A(2) of the Regulations were modified or varied by omitting “1 January 2005” and substituting “1 July 2005”.
Transitional exemption — periodic statements
2. Under paragraph 1020F(1)(a) of the Act ASIC exempts each issuer of a financial product from subsection 1017D(1) of the Act insofar as it requires information specified in paragraphs 7.9.19(g) to (j), 7.9.20(1)(kb) and 7.9.75(1)(b) of the Regulations as in force from 1 January 2005 to be included in a periodic statement prepared before 1 July 2005.
Revocation
3. Under paragraphs 951B(1)(c), 1020F(1)(a) and 1020F(1)(c) of the Act, ASIC revokes Class Order [CO 04/1176].
Interpretation
4. In this instrument:
authorised representative has the meaning given by section 761A of the Act; and
issuer has the meaning given by section 761E of the Act.
Notes to ASIC Class Order [CO 04/1434]
Note 1
ASIC Class Order [CO 04/1434] (in force under paragraphs 951B(1)(c) and 1020F(1)(a) and (c) of the Corporations Act 2001) as shown in this compilation comprises that Class Order amended as indicated in the Tables below.
Table of Instruments
Instrument number | Date of making or FRLI registration | Date of commencement | Application, saving or transitional provisions |
[CO 04/1434] | 8/12/2004 | 8/12/2004 | - |
[CO 04/1527] | 14/12/2004 | 14/12/2004 | - |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Para 1(a) | am. [CO 04/1527] |
Para 1(b) | am. [CO 04/1527] |
Para 3 | rs. [CO 04/1527] |
Para 4 | am. [CO 04/1527] |
Overview
The ASIC Class Order [CO 04/1434], enacted in 2004 under the Corporations Act 2001, aims to address transitional issues arising from the introduction of new dollar disclosure requirements for financial services licensees, authorised representatives, and issuers of financial products. This Class Order, prepared by the Australian Securities and Investments Commission (ASIC), provides a temporary extension of the transitional period for compliance with certain dollar disclosure provisions, and offers exemption from specific disclosure requirements in periodic statements for a limited time. The policy objective behind this legislation is to facilitate a smoother transition for financial entities as they adjust to the new regulatory environment, thereby reducing potential compliance burdens and associated costs during the initial stages of implementation.
Scope and Application
ASIC Class Order [CO 04/1434] provides transitional relief concerning dollar disclosure requirements under the Corporations Act 2001, specifically targeting financial services licensees, their authorised representatives, and issuers of financial products. The order modifies the application date of certain subregulations from 1 January 2005 to 1 July 2005 for compliance with Part 7.7 and Part 7.9 of the Act. Additionally, it exempts issuers of financial products from certain disclosure requirements for periodic statements prepared before 1 July 2005, effectively providing a grace period for adherence to the new regulations. This legislative instrument is issued under the authority of the Corporations Act 2001 and applies nationally across Australia. Notably, the Class Order revokes the previous Class Order [CO 04/1176], ensuring that only the updated provisions are in effect.
Key Provisions
The ASIC Class Order [CO 04/1434], made under the Corporations Act 2001, introduces transitional relief for dollar disclosure requirements for certain financial services entities. Under section 1(a) of the Class Order, Part 7.7 of the Act now applies to financial services licensees and their authorised representatives as if the relevant subregulations were modified to change the effective date from 1 January 2005 to 1 July 2005. Similarly, for issuers of financial products, section 1(b) and (c) modify the effective dates of certain subregulations in Part 7.9 of the Act from 1 January 2005 to 1 July 2005. This transitional relief aims to give these entities additional time to comply with the new disclosure requirements.
The Class Order imposes specific obligations on financial services licensees, authorised representatives, and issuers of financial products. These entities must now comply with the modified subregulations by the new effective date of 1 July 2005. This includes ensuring that their disclosures and periodic statements align with the updated requirements. For issuers, this also means adjusting their periodic statements to exclude certain information that was required before 1 July 2005, as stipulated in section 2 of the Class Order.
Breach of the provisions outlined in the ASIC Class Order [CO 04/1434] can lead to various consequences. Although the Class Order itself does not explicitly detail penalties, non-compliance with the Corporations Act 2001 or the Corporations Regulations 2001 can result in significant penalties. These may include fines and, in severe cases, imprisonment. Additionally, entities that fail to adhere to the modified disclosure requirements may face regulatory action from ASIC, including potential revocation of their licenses or authorisations. The exact penalties would depend on the specific breach and the severity of non-compliance as assessed under the overarching legislation.