Overview

The ASIC Class Order [05/1194] was enacted in 2005 by the Australian Securities and Investments Commission (ASIC) to address concerns expressed by actuaries regarding the scope of exemption from holding an Australian financial services licence as provided under the Corporations Act 2001. This legislative measure aims to extend the temporary relief provided by ASIC Class Order [03/1096], which had initially been set to expire on 1 January 2006, to 1 July 2006. This extension is intended to allow actuaries additional time to operate without a licence while the government deliberates on broader regulatory changes. The Class Order operates under the authority granted to ASIC by section 911A(2)(l) of the Corporations Act, and it modifies the previous class order without the need for additional consultation due to its minor nature and alignment with existing relief provisions.

Scope and Application

ASIC Class Order [CO 05/1194] extends the interim relief under section 911A(2)(l) of the Corporations Act 2001, which allows for exemption from the requirement to hold an Australian financial services licence, specifically for actuaries. This order is applicable to individuals who are practicing actuaries, ensuring they are not required to obtain a financial services license while further exemptions for their activities are being considered. The relief is intended to be temporary, originally provided until 1 January 2006 under CO [03/1096] and now extended to 1 July 2006. This extension aims to maintain continuity and provide a stable regulatory environment for actuaries, allowing them time to adapt to potential future regulatory changes. The geographic reach of this order is national, as it pertains to the Corporations Act, which applies throughout Australia. No consultation was deemed necessary as the Class Order is of a minor or machinery nature and merely extends previously granted relief.

Key Provisions

The ASIC Class Order [05/1194] extends the temporary relief for actuaries from the requirement to hold an Australian financial services licence, which was initially provided under Class Order [03/1096], until 1 July 2006. This extension is necessary because the Government is considering further exemptions for actuaries. Specifically, Section 911A(2)(l) of the Corporations Act 2001 allows ASIC to exempt a person from holding a financial services licence, and Regulation 7.1.29 of the Corporations Regulations 2001 provides an exemption for a range of services. However, actuaries have raised concerns that not all aspects of their ordinary business were considered when these exemptions were granted. The obligations imposed by the Class Order are primarily directed at actuaries who may benefit from the extended relief. These actuaries must continue to comply with any other relevant regulatory requirements while benefiting from the exemption from holding a financial services licence. The primary requirement is for actuaries to remain informed about the ongoing considerations by the Government regarding further exemptions, as the extension of relief is contingent on the outcome of these deliberations. The Class Order does not create new offences, penalties, or civil/criminal consequences for breach. Instead, it maintains the status quo by extending an existing relief that was already in place. However, it is important to note that any actuaries who fail to comply with other regulatory requirements, despite benefiting from the exemption on the financial services licence, could face enforcement actions under those specific regulatory frameworks. The primary consequence of not adhering to other regulatory requirements would be the usual enforcement actions that could include fines, injunctions, or other penalties applicable under the relevant legislation.