ASIC CLASS ORDER [05/1194]

EXPLANATORY STATEMENT

Prepared by the Australian Securities and Investments Commission

Corporations Act 2001

Paragraph 911A(2)(l) – Variation

The Australian Securities and Investments Commission (ASIC) makes ASIC Class Order [CO 05/1194] Actuaries – extension of interim relief under s911A(2)(l) of the Corporations Act 2001 (the Act).  Section 911A(2)(l) provides that ASIC may exempt a person from the requirement to hold an Australian financial services licence.

1. Background

Regulation 7.1.29 of the Corporations Regulations 2001 provides an exemption from licensing for a range of services.  Actuaries have expressed concern that not all aspects of the ordinary business of actuaries were considered when the exemption from licensing was provided for.

CO [03/1096] Actuaries provides temporary relief until 1 January 2006 so that eligible actuaries do not have to obtain an Australian financial services license while further exemptions for actuaries could be considered.

ASIC understands that the Government is considering whether to make regulations to provide further exemptions for actuaries.  In these circumstances, it is appropriate to extend the relief in [CO 03/1096] for an additional period.

2.      The Class Order

 [CO 05/1194] amends [CO 03/1096] by extending the temporary relief to 1 July 2006. 

3.      Consultation

Consultation was not made as [CO 05/1194] is only minor or machinery in nature and extends relief already given.