Overview

The ASIC Class Order [C0 05/611], enacted in 2005, is an instrument made under the Corporations Act 2001 by the Australian Securities and Investments Commission (ASIC). This Class Order was introduced to provide relief to providers of superannuation calculators, exempting them from certain licensing and conduct requirements set out in Parts 7.6 and 7.7 of the Corporations Act. The objective of this relief is to ensure legal certainty for calculator providers and to facilitate the dissemination of superannuation information to consumers. The Class Order applies to calculators that meet specific conditions, including allowing users to alter default assumptions, ensuring these assumptions are reasonable, and clearly disclosing the calculator's purpose, limitations, and advice about seeking professional financial advice. The development of this Class Order involved consultation with industry representatives, though further consultation was deemed unnecessary due to its minor and administrative nature.

Scope and Application

The ASIC Class Order [05/611] applies to providers of superannuation calculators who meet specific minimum conditions, offering them relief from certain licensing and disclosure requirements under the Corporations Act 2001. This relief is granted under sections 926A(2)(a) and 951B(1)(a) of the Act, which allow ASIC to exempt a class of persons from all or specified provisions of Parts 7.6 and 7.7 of the Act respectively. The Class Order provides these providers with an exemption from needing an Australian financial services licence with advice authorisation, or if they already hold such a licence, relief from the advice conduct and disclosure requirements of Part 7.7. This regulatory relief is designed to deliver legal certainty and facilitate the provision of superannuation information to consumers, as long as the calculators meet the outlined conditions including allowing users to alter default assumptions, displaying clear statements about the calculator's purpose and limitations, and ensuring users understand that the calculator is not a substitute for professional advice. The Class Order is applicable nationally, encompassing all providers within the Commonwealth of Australia who provide superannuation calculators that comply with the specified criteria. The order does not substantially alter ASIC's previously announced administrative position and is of a minor and machinery nature.

Key Provisions

The ASIC Class Order [C0 05/611] provides specific relief to providers of superannuation calculators under certain conditions, as outlined in sections 926A(2)(a) and 951B(1)(a) of the Corporations Act 2001. This relief exempts these providers from the requirement to hold an Australian financial services licence or from the advice conduct and disclosure requirements in Parts 7.6 and 7.7 of the Act, where applicable. The exemption is designed to ensure legal certainty and facilitate the provision of superannuation information to consumers. To qualify for this relief, the superannuation calculators must meet several conditions. Firstly, the calculator must allow users to change default assumptions. Secondly, the default assumptions must be reasonable. The calculator must also display clear and prominent statements explaining the purpose and limitations of the calculator, why the default assumptions are reasonable, whether the estimate accounts for changes in the cost of living, and that the calculator is not intended for making financial decisions without seeking advice from a licensed professional. Additionally, users must be able to print or electronically store estimates, and the calculator must not generate advice about specific financial products. Providers of superannuation calculators that meet these conditions will be exempt from certain licensing and disclosure requirements. However, they must ensure compliance with the specified conditions to maintain this exemption. Failure to adhere to the requirements may result in the relief being revoked, potentially exposing the provider to regulatory action under the Corporations Act 2001. There are no explicit offences or penalties stated within the Class Order itself. However, non-compliance with the Corporations Act 2001 can lead to civil or criminal penalties. For example, providing misleading or deceptive information could result in penalties under sections 1041H and 1317E of the Act, which can include fines up to $222,000 for individuals and significantly higher amounts for corporations. Additionally, breaches of the relief conditions may result in ASIC taking further regulatory action, including enforcement actions or revocation of the exemption.