Overview

The ASIC Class Order [CO 06/330], enacted under the Corporations Act 2001, addresses the deferral of the application of section 1012IA to superannuation products, initially delayed until 11 March 2004 by Regulation 10.2.50A of the Corporations Regulations 2001. This Class Order, issued by the Australian Securities and Investments Commission (ASIC), further extends the deferral until 30 June 2007, to provide sufficient time for ASIC to finalise its policy on compliance with section 1012IA and for the superannuation industry to transition to compliance with the Act and ASIC's policy. The primary objective of this Class Order is to ensure that clients are informed about where they can obtain Product Disclosure Statements for any underlying products during this transition period. While ASIC did not undertake specific consultation for this Class Order due to its minor and procedural nature, it has previously engaged in consultation on the application of section 1012IA to superannuation products, as part of its broader policy development process, including through the Policy proposal paper titled "Superannuation: Delivery of Superannuation Product Disclosure and Investment Choice" released in November 2004. This reflects a measured approach to policy implementation, balancing the need for regulatory clarity with industry readiness.

Scope and Application

ASIC Class Order [CO 06/330] applies to entities and persons involved in the provision of superannuation products, extending the deferred application of section 1012IA of the Corporations Act 2001 until 30 June 2007. This order is made under section 1020F(1)(a) of the Act, allowing ASIC to exempt certain parties from specific provisions of Part 7.9 of the Act. The geographic reach of this Class Order is national, affecting the entire Australian superannuation industry. The purpose of this Class Order is to provide additional time for ASIC to finalise its policy on compliance with section 1012IA and for the superannuation industry to transition to compliance with both the statutory provision and ASIC's policy. While no specific consultation was undertaken for this Class Order due to its minor and machinery nature, broader consultations have been conducted as part of ASIC's policy development process.

Key Provisions

The Australian Securities and Investments Commission (ASIC) has issued Class Order [CO 06/330], which pertains to the Corporations Act 2001. Under section 1020F(1)(a) of the Act, ASIC has the authority to exempt a person or a class of persons from all or specified provisions of Part 7.9. This particular Class Order extends the deferment of the application of section 1012IA of the Act to superannuation products until 30 June 2007. This extension was necessitated to allow more time for ASIC to finalise its policy on compliance with section 1012IA and for the superannuation industry to adjust and comply with this policy. The primary requirement of this Class Order is to defer the application of section 1012IA, which deals with the disclosure of information about financial products, to superannuation products. This was initially delayed until 11 March 2004 by Regulation 10.2.50A of the Corporations Regulations 2001, and subsequently extended by ASIC to 30 June 2006. Class Order [CO 06/330] further extends this deferment to 30 June 2007. During this period, clients must be informed about where they can obtain a Product Disclosure Statement regarding any underlying products. The obligations imposed by this Class Order primarily revolve around the need for ASIC to finalise its policy on compliance with section 1012IA. Additionally, it places the responsibility on the superannuation industry to transition to compliance with this policy. The requirement for clients to be informed about where they can access Product Disclosure Statements remains in effect throughout the deferment period. Breaching the requirements of this Class Order could result in significant penalties. Under the Corporations Act 2001, individuals or entities that fail to comply with ASIC's orders or the Act's provisions may face civil penalties. For corporations, the maximum penalty can be up to $1.65 million for each contravention, as outlined in section 1317E of the Act. Individual officers or employees involved in the contravention may also face personal penalties, including fines and imprisonment, depending on the severity of the breach. The Act provides for both civil and criminal enforcement mechanisms to ensure compliance with its provisions.