ASIC Class Order [CO 04/672]
Extension of on-sales exemption
This instrument has effect under s741(1) and 1020F(1) of the Corporations Act 2001.
This compilation was prepared on 1 October 2015 taking into account amendments up to ASIC Corporations (Amendment and Repeal) Instrument 2015/843. See the table at the end of this class order.
Prepared by the Australian Securities and Investments Commission.
Australian Securities and Investments Commission
Corporations Act 2001 — Subsection 741(1) and 1020F(1) — Declaration
Under subsections 741(1) and 1020F(1) of the Corporations Act 2001 (the Act ) the Australian Securities and Investments Commission declares that:
(a) Chapter 6D of the Act applies to all persons as if paragraph 708A(5)(d) in that Chapter; and
(b) Part 7.9 of the Act applies in relation to all persons as if paragraph 1012DA(5)(d) in that Part,
were modified or varied by after “341”, inserting “(other than ASIC Class Orders [CO 98/100], [CO 98/101], [CO 98/104], [CO 98/1418], [CO 98/2395], [CO 99/90], [CO 00/2449], [CO 10/654], [CO 13/1050] or [CO 14/757], ASIC Corporations (Stapled Group Reports) Instrument 2015/838, ASIC Corporations (Related Scheme Reports) Instrument 2015/839 or ASIC Corporations (Post Balance Date Reporting) Instrument 2015/842)”.
Commencement
This instrument commences on 1 July 2004.
Notes to ASIC Class Order [CO 04/672]
Note 1
ASIC Class Order [CO 04/672] (in force under s741(1) and 1020F(1) 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 04/672] | 1/7/2004 (see F2006B00272) | 1/7/2004 | |
[CO 05/142] | 30/3/2005 (see F2005L00772) | 30/3/2005 | - |
[CO 05/641] | 28/7/2005 (see F2005L02099) | 28/7/2005 | - |
[CO 05/646] | 3/8/2005 (see F2005L02204) | 3/8/2005 | - |
[CO 05/938] | 13/9/2005 (see F2005L02615) | 13/9/2005 | - |
[CO 06/51] | 31/1/2006 (see F2006L00292) | 31/1/2006 | - |
[CO 06/106] | 22/2/2006 (see F2006L00591) | 22/2/2006 | - |
[CO 06/709] | 7/9/2006 (see F2006L02985) | 7/9/2006 | - |
[CO 07/572] | 4/10/2007 (see F2007L03907) | 4/10/2007 | - |
[CO 10/655] | 29/7/2010 (see F2010L02196) | 29/7/2010 | - |
[CO 11/140] | 17/2/2011 (see F2011L00278) | 17/2/2011 | - |
[CO 13/1051] | 22/8/2013 (see F2013L01614) | 22/8/2013 | - |
[CO 14/757] | 7/8/2014 (see F2014L01082) | 7/8/2014 | - |
2015/843 | 30/9/2015 (see F2015L01555) | 1/10/2015 | - |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Class order........ | am. [CO 05/142]; [CO 05/641]; [CO 05/646]; [CO 05/938];
[CO 06/51]; [CO 06/106]; [CO 06/709]; [CO 07/572];
[CO 10/655]; [CO 11/140]; [CO 13/1051]; [CO 14/757] and 2015/843 |
Overview
The ASIC Class Order [CO 04/672], which has been in effect since 1 July 2004, was introduced under subsections 741(1) and 1020F(1) of the Corporations Act 2001 by the Australian Securities and Investments Commission (ASIC). This legislation addresses the need to clarify the application of certain provisions in the Act, specifically Chapter 6D and Part 7.9, by excluding specified ASIC class orders and instruments from the scope of these chapters. This exclusion aims to streamline regulatory requirements and ensure clarity for those subject to the Corporations Act. The policy objective is to refine the regulatory framework, making it more precise and easier to navigate for businesses and individuals affected by these provisions.
Scope and Application
The ASIC Class Order [CO 04/672], which is in force under sections 741(1) and 1020F(1) of the Corporations Act 2001, modifies the application of certain provisions of the Act to all persons by inserting a specific exclusion phrase into the Act as if it were written into the legislation itself. This amendment affects the scope of application for the on-sales exemption, specifically excluding certain ASIC Class Orders and Instruments from its purview. The order came into effect on 1 July 2004, and since then, it has been amended multiple times, with the most recent amendment being ASIC Corporations (Amendment and Repeal) Instrument 2015/843, which commenced on 1 October 2015. These amendments and the subsequent modifications aim to fine-tune the regulatory framework governing on-sales exemptions, ensuring that the provisions remain relevant and effective within the evolving corporate landscape.
Key Provisions
The ASIC Class Order [CO 04/672], which commenced on 1 July 2004, is an instrument under the Corporations Act 2001 (the Act) that extends the on-sales exemption for financial products to all persons, with certain exceptions. Specifically, subsections 741(1) and 1020F(1) of the Act apply Chapter 6D and Part 7.9 of the Act to all persons, but with modifications that exclude certain specified ASIC Class Orders and other instruments (subsection (a)). These modifications are intended to ensure that the requirements of these chapters and parts do not apply to the excluded instruments (subsection (b)). This order aims to streamline the regulatory requirements for financial products by providing a broader exemption for on-sales activities.
The obligations imposed by this class order on the parties it governs are primarily related to ensuring that financial products are not subject to the detailed requirements of Chapter 6D and Part 7.9 unless specifically required by the excluded instruments. Financial product issuers and distributors must ensure that their products comply with the broader exemption provided by this order while also adhering to any specific requirements outlined in the excluded instruments. This includes maintaining accurate records and documentation to demonstrate compliance with the exemption and any relevant exclusions.
For breaches of the Corporations Act 2001 or any related regulations, the Act provides for both civil and criminal penalties. Civil penalties can include substantial fines, with the exact amount determined by the court based on the severity and circumstances of the breach. Criminal penalties can include imprisonment, with maximum penalties varying depending on the specific offence. For example, breaches of certain financial services provisions can result in fines of up to $1.3 million for individuals and $6.5 million for bodies corporate, along with potential imprisonment terms. The exact penalties depend on the specific provisions of the Act that are breached and the nature of the breach.