ASIC Class Order [CO 06/495]
Extension of transitional compensation arrangements
This instrument has effect under s926A(2)(c) of the Corporations Act 2001.
This compilation was prepared on 9 October 2007 taking into account amendments up to [CO 06/1012]. 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 926A(2)(c) — Declaration
Enabling Legislation
1. The Australian Securities and Investments Commission makes this instrument under paragraph 926A(2)(c) of the Corporations Act 2001 (the Act).
Title
2. This instrument is ASIC Class Order [CO 06/495].
Commencement
3. This instrument commences on 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 7.6 (other than Divisions 4 and 8) of the Act applies in relation to a financial services licensee as if subregulation 7.6.02AA(2) of the Corporations Regulations 2001 were modified or varied by omitting “30 June 2006.” and substituting “30 June 2007.”.
Notes to ASIC Class Order [CO 06/495]
Note 1
ASIC Class Order [CO 06/495] (in force under s926A(2)(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 06/495] | 27/6/2006 (see F2006L01961) | 27/6/2006 | |
[CO 06/1012] | 19/12/2006 (see F2006L04138) | 19/12/2006 | - |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Para 4........... | am. [CO 06/1012] |
Overview
ASIC Class Order [CO 06/495] was enacted in 2006 under the Corporations Act 2001 to address a gap in the transitional compensation arrangements for financial services licensees, ensuring they could continue to meet certain obligations beyond the initial 30 June 2006 deadline. This instrument was created by the Australian Securities and Investments Commission (ASIC) in its capacity to regulate financial markets and protect consumers under the Corporations Act 2001. The policy objective of this Class Order was to provide a practical extension for licensees to comply with transitional provisions without facing undue hardship, thereby maintaining the integrity and stability of the financial services sector. The instrument is registered under the Legislative Instruments Act 2003 and came into effect on 27 June 2006, as recorded on the Federal Register of Legislative Instruments.
Scope and Application
ASIC Class Order [CO 06/495] pertains to financial services licensees under the Corporations Act 2001, effectively extending the transitional compensation arrangements for such entities. The application of this legislative instrument is confined to financial services licensees and is enacted to ensure that the specified sections of the Act apply as if a particular date mentioned in the Corporations Regulations 2001 were modified. This alteration involves extending the timeframe for compliance with certain provisions from 30 June 2006 to 30 June 2007. The geographic and jurisdictional reach of this instrument is limited to the Commonwealth of Australia, governed by the legislative framework established by the Corporations Act 2001. The Class Order came into effect on the date it was registered under the Legislative Instruments Act 2003, with subsequent amendments tracked and reflected in the compilation. There are no specific exclusions or exemptions outlined in the Class Order itself, though any broader exclusions or exemptions would be detailed within the Corporations Act 2001 or related regulations.
Key Provisions
ASIC Class Order [CO 06/495] extends transitional compensation arrangements under the Corporations Act 2001 (the Act), specifically affecting financial services licensees by modifying the date for certain transitional provisions. The main operative sections (sections 1 to 4) establish the framework for the class order. Section 1 outlines that the Australian Securities and Investments Commission (ASIC) is the authority issuing this class order. Section 2 identifies the instrument as ASIC Class Order [CO 06/495]. Section 3 specifies that the class order commences on the date it is registered under the Legislative Instruments Act 2003, with registration recorded on the Federal Register of Legislative Instruments (FRLI). Section 4 declares that Part 7.6 of the Act, excluding Divisions 4 and 8, applies to financial services licensees with a modification to subregulation 7.6.02AA(2) of the Corporations Regulations 2001. The modification extends the date from 30 June 2006 to 30 June 2007.
The obligations and requirements imposed by the Act on the parties it governs include ensuring compliance with the transitional compensation arrangements outlined in the class order. Financial services licensees must adhere to the modified subregulation 7.6.02AA(2) of the Corporations Regulations 2001, which extends the deadline for certain transitional provisions. This necessitates that licensees review their compliance protocols and ensure all relevant activities are completed by the extended date of 30 June 2007. The class order also requires that all necessary documentation and records be maintained to demonstrate compliance with the amended regulations.
Failure to comply with the provisions of the class order may result in civil or criminal consequences. While specific offences and penalties are not detailed in the provided text, the Corporations Act 2001 generally allows for significant penalties for non-compliance, including fines and imprisonment for criminal offences, as well as substantial fines for civil penalties. The exact penalties would depend on the nature and severity of the breach, as well as the discretion of the court. Financial services licensees must therefore take the provisions of the class order seriously to avoid any potential legal repercussions.