ASIC CLASS ORDER [CO 06/36]

EXPLANATORY STATEMENT

Prepared by the Australian Securities and Investments Commission

Corporations Act 2001

Subsection 341(1) and Paragraphs 601QA(1)(b), 911A(2)(l), 926A(2)(a), 951B(1)(a) and (c) and 1020F(1)(c) — Variation

The Australian Securities and Investments Commission (ASIC) makes ASIC Class Order [CO 06/36] under subsection 341(1) and paragraphs 601QA(1)(b), 911A(2)(l), 926A(2)(a), 951B(1)(a) and (c) and 1020F(1)(c) of the Corporations Act 2001 (the Act).

Subsection 341(1) provides that ASIC may make an order providing relief from certain provisions of Chapter 2M of the Act which deals with financial reporting.

By paragraphs 601QA(1)(b), 951B(1)(c) and 1020F(1)(c) ASIC may declare that Chapter 5C and Parts 7.7 and 7.9 of the Act dealing with managed investment schemes, financial services disclosure and fundraising respectively have effect as if provisions of them were omitted, modified or varied.

Paragraphs 926A(2)(a) and 951B(1)(a) enable ASIC to exempt persons from a provision of Parts 7.6 and 7.7 of the Act dealing with the licensing of financial services providers and financial services disclosure respectively.

Paragraph 911A(2)(l) enables ASIC to exempt a person from the requirement to hold an Australian financial services licence.

1. Background

In December 2005 ASIC made ASIC Class Order [CO 05/1270] to remove doubt about the efficacy of various instruments possibly affected by transitional provisions in the Legislative Instruments Act 2001.

2. Purpose of the class order

ASIC Class Order [CO 06/36] has been made to extend the coverage of ASIC Class Order [CO 05/1270] to another instrument which may have been so affected.

3. Operation of class order

ASIC Class Order [CO 06/36] varies the definition of eligible instrument in ASIC Class Order [CO 05/1270] to include ASIC Class Order [CO 04/1556].

4. Incorporation by reference

As a result of this variation ASIC Class Order [CO 05/1270] will incorporate by reference ASIC Class Order [CO 04/1556].  A copy of the incorporated instrument may be obtained from ASIC’s website: http://www.asic.gov.au/co.

5. Consultation

Given the technical nature of ASIC Class Order [CO 06/36], no consultation was undertaken before it was made.