ASIC CLASS ORDER [05/346]
EXPLANATORY STATEMENT
Prepared by the Australian Securities and Investments Commission
Corporations Act 2001
Paragraph 1020F(1)(a) – Variation
The Australian Securities and Investments Commission (ASIC) makes Class Order [CO 05/346] under paragraph 1020F(1)(a) of the Corporations Act 2001 (the Act). Paragraph 1020F(1)(a) provides that the Australian Securities and Investments Commission may exempt a person or class of persons from all or specified provisions of Part 7.9 of the Act.
1. Deferral of application of s1012IA
Regulation 10.2.50A of the Corporations Regulations 2001 delayed the application of s1012IA of the Act to superannuation products until 11 March 2004.
In order to adequately consider technical aspects of the application of s1012IA and whether there are any practical problems arising from compliance with it (including whether any permanent ongoing related relief is appropriate), ASIC extended the delayed application of s1012IA until 30 June 2005 (see Class order [CO 03/1097]), on condition that clients must be provided with information about where they may obtain a Product Disclosure Statement (if available) about any underlying products.
[CO 05/346] further extends this delayed application until 30 June 2006 to allow sufficient time for:
(a) ASIC to finalise its policy on compliance with s1012IA; and
(b) the superannuation industry to transition to compliance with s1012IA and ASIC's policy.
2. Consultation
ASIC did not undertake any specific consultation with stakeholders before [CO 05/346] was made because it is of a minor and machinery nature. However, ASIC undertook consultation about the application of s1012IA to superannuation products as part of its policy development process: see Policy proposal paper Superannuation: Delivery of Superannuation Product Disclosure and Investment Choice (November 2004).