ASIC CLASS ORDER [06/330]

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 06/330] Deferral of s1012IA – amendment under s1020F(1)(a) of the Corporations Act 2001 (the Act).  Section 1020F(1)(a) provides that ASIC may exempt a person or class of persons from all or specified provisions of Pt 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 practical problems arising from compliance with it justify ongoing  relief, ASIC extended the delayed application of s1012IA until 30 June 2006 (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 06/330] further extends the delayed application of s 1012IA until 30 June 2007.

2. Purpose of the Class Order

[CO 06/330] further delays the application of s1012IA to superannuation products until 30 June 2007 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.

3.  Consultation

ASIC did not undertake any specific consultation with stakeholders before [CO 06/3306] was made because it is of a minor and machinery nature. However, ASIC has consulted on 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).