ASIC Class Order [CO 05/683]
Dollar disclosure: further transitional relief
This instrument has effect under s1020F(1)(c) of the Corporations Act 2001.
This compilation was prepared on 10 October 2007 taking into account amendments up to [CO 07/123]. See the table at the end of this class order.
Prepared by the Australian Securities and Investments Commission.
Australian Securities and Investments Commission
Corporations Act 2001 — Paragraph 1020F(1)(c) — Declaration
Enabling Legislation
1. The Australian Securities and Investments Commission makes this instrument under paragraph 1020F(1)(c) of the Corporations Act 2001 (the Act).
Title
2. This instrument is ASIC Class Order [CO 05/683].
Commencement
3. This instrument commences on the later of:
(a) 1 July 2005; and
(b) the date it is registered under the Legislative Instruments Act 2003.
Note: An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register). The FRLI may be accessed at http://www.frli.gov.au/.
Declaration
4. Part 7.9 of the Act applies in relation to a general insurance product as if subregulation 7.9.15A(2) of the Corporations Regulations 2001 were modified or varied by omitting “1 January 2005” and substituting “30 June 2008”.
Interpretation
5. In this instrument:
general insurance product has the meaning given by section 761A of the Act.
Notes to ASIC Class Order [CO 05/683]
Note 1
ASIC Class Order [CO 05/683] (in force under s1020F(1)(c)of the Corporations Act 2001) as shown in this compilation comprises that Class Order amended as indicated in the tables below.
Table of Instruments
Instrument number | Date of FRLI registration | Date of commencement | Application, saving or transitional provisions |
[CO 05/683] | 28/6/2005 (see F2005L01754) | 1/7/2005 | |
[CO 06/476] | 19/6/2006 (see F2006L01862) | 19/6/2006 | - |
[CO 07/123] | 21/3/2007 (see F2007L00668) | 1/4/2007 | - |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Para 3 note........ | am. [CO 07/123] |
Para 4........... | am. [CO 06/476] |
| rs. [CO 07/123] |
Para 5........... | am. [CO 07/123] |
Overview
The ASIC Class Order [CO 05/683], enacted under the Corporations Act 2001, was introduced to address the transitional relief for dollar disclosure requirements in relation to general insurance products. This legislative instrument was prepared by the Australian Securities and Investments Commission (ASIC) and commenced on the later of 1 July 2005 and the date it was registered under the Legislative Instruments Act 2003. The primary objective of this Class Order is to modify the effective date for the application of certain subregulations within the Corporations Regulations 2001, specifically extending the deadline for compliance with dollar disclosure requirements for general insurance products from 1 January 2005 to 30 June 2008. This extension aims to provide additional time for entities to adapt to the new regulatory requirements.
Scope and Application
ASIC Class Order [CO 05/683] applies to entities involved in the provision of general insurance products, as defined by the Corporations Act 2001. It operates under the authority granted by section 1020F(1)(c) of the Act, and its scope includes modifications to subregulation 7.9.15A(2) of the Corporations Regulations 2001, effectively altering the date by which certain dollar disclosure requirements must be met. The instrument is designed to provide transitional relief for entities in relation to these disclosure obligations. It commenced on 1 July 2005 or the date of its registration under the Legislative Instruments Act 2003, whichever is later. The Class Order has been subject to amendments, with [CO 06/476] and [CO 07/123] altering specific provisions to refine the transitional relief provided. The geographic reach of this Class Order is national, applying across Australia as it is made under Commonwealth legislation. The Class Order does not specify any exclusions, exemptions, or thresholds within its text, but it is subject to the broader provisions of the Corporations Act and related regulations.
Key Provisions
ASIC Class Order [CO 05/683] primarily modifies the application of Part 7.9 of the Corporations Act 2001 in relation to general insurance products by extending the date for certain dollar disclosure requirements. Specifically, section 4 of the Class Order states that Part 7.9 of the Act applies to general insurance products as if the date mentioned in subregulation 7.9.15A(2) of the Corporations Regulations 2001 was changed from “1 January 2005” to “30 June 2008”. This means that entities offering general insurance products will have more time to comply with these disclosure requirements.
The obligations imposed on the parties governed by this Class Order include ensuring that their general insurance products meet the modified dollar disclosure requirements. Entities must provide adequate and accurate information to their clients regarding the products they offer, in compliance with the extended date provided by the Class Order. This involves reviewing existing documentation, updating it as necessary, and ensuring that any marketing materials accurately reflect the changes mandated by the Class Order.
Failure to comply with the provisions of this Class Order can lead to serious consequences. While the specific details of offences, penalties, and consequences are not outlined in the Class Order itself, entities that do not adhere to the modified disclosure requirements may be subject to enforcement actions by the Australian Securities and Investments Commission (ASIC). This could include fines, legal proceedings, or other regulatory actions aimed at ensuring compliance with the Corporations Act 2001. The penalties for non-compliance could potentially be severe, depending on the nature and extent of the breach, and may include substantial fines and other sanctions as determined by ASIC or a court.