ASIC CLASS ORDER [05/508]

EXPLANATORY STATEMENT

Prepared by the Australian Securities and Investments Commission

Corporations Act 2001

 Paragraph 992B(1)(c) – Revocation

The Australian Securities and Investments Commission (ASIC) makes ASIC Class Order [CO 05/508] under paragraph 992B(1)(c) of the Corporations Act 2001 (the Act).

1. Background

ASIC used its statutory powers to modify provisions of the Act under paragraph 992B(1)(c) by executing ASIC Class Order [CO 04/673] Insurance brokers' trust accounts under s981B, issued 21 June 2004. The effect of that class order is to allow insurance brokers to pay into trust accounts monies which they reasonably believe may comprise in whole or in part monies to which s981B(1)(b)(i) to (iv) of the Act apply, subject to certain conditions.

Subsequently, by way of the Corporations Amendment Regulations 2005 (No 1) 2005 No 31, regulation 7.8.01 was amended to allow mixed money and unidentified money to be paid into a s981B account under s981B(1)(b)(iv): subregulation 7.8.01(11). These amendments came into effect on 11 March 2005.

2. Purpose and operation of the class order

ASIC executed ASIC Class Order [CO 05/508] to revoke ASIC Class Order [CO 04/673] as the latter Class Order is now no longer necessary because of regulation 7.8.01.

3. Consultation

No consultation was considered necessary, given the machinery nature of the Class Order.