ASIC Class Order [CO 06/704]

Administered by Department of the Treasury

Legislation au F2006L02944 Not in force Legislative Instrument

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ASIC CLASS ORDER [CO 06/704]

EXPLANATORY STATEMENT

Prepared by the Australian Securities and Investments Commission

Corporations Act 2001

Paragraph 283GA(1)(a), subsection 341(1) and paragraphs 601QA(1)(a) and (b), 741(1)(a), 911A(2)(l), 926A(2)(a), 951B(1)(a) and (c), 992B(1)(a) and       1020F(1)(a) and (c) — Variation

The Australian Securities and Investments Commission (ASIC) makes ASIC Class Order [CO 06/704] under paragraph 283GA(1)(a), subsection 341(1) and paragraphs 601QA(1)(a) and (b), 741(1)(a), 911A(2)(l), 926A(2)(a), 951B(1)(a) and (c), 992B(1)(a) and 1020F(1)(a) and (c) of the Corporations Act 2001 (the Act).

By paragraphs 283GA(1)(a), 601QA(1)(a) and 741(1)(a) ASIC may exempt a person from a provision of Chapters 2L, 5C and 6D of the Act dealing with debentures, managed investment schemes and fundraising respectively.

Subsection 341(1) enables ASIC to make an order providing relief from certain provisions of Chapter 2M of the Act dealing with financial reports and audits.

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

Paragraph 926A(2)(a) enables ASIC to exempt persons from a person or a class of persons from certain provisions of Parts 7.6 of the Act dealing with the licensing of financial services providers.

By paragraphs 951B(1)(a), 992B(1)(a) and 1020F(1)(a) ASIC may exempt a person or a class of persons from all or specified provisions of Parts 7.7, 7.8 and 7.9 of the Act dealing with financial services disclosure; other provisions relating to conduct etc. connected with financial products and financial services; and financial product disclosure and other provisions relating to the issue, sale and purchase of financial products respectively.

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 financial product disclosure and other provisions relating to the issue, sale and purchase of financial products respectively have effect as if provisions of them were omitted, modified or varied.

1. Background

In December 2005 ASIC made ASIC Class Order [CO 05/1270] to remove doubt about the efficacy of various instruments which, because they were not gazetted before 1 January 2005, were arguably rendered inoperative from 1 January 2005 by the Legislative Instruments Act 2003 (the LIA).

Since the making of that ASIC Class Order a further three instruments, namely ASIC Class Orders [CO 02/239], [CO 03/184] and [CO 04/10], (the affected instruments) have been rendered inoperative by the LIA.  This is because each affected instrument was not lodged for registration on or before the last day for lodging the instrument for registration (the last lodgment day) as worked out under section 29 of the LIA.[1]  The LIA provides that on the day after the last lodgment day that instrument ceased to be enforceable and is taken to have been repealed.

2. Purpose of the class order

ASIC Class Order [CO 06/704] has been made in relation to each affected instrument to produce, immediately after the last lodgment day, the intended effect of that instrument as in force on the last lodgment day.

3. Operation of class order

ASIC Class Order [CO 06/704] varies ASIC Class Order [CO 05/1270] to insert new provisions to produce the intended effect of the affected instruments in accordance with paragraph 2 above.

The variation will ensure that persons who have relied, or wish to rely, on an affected instrument after the last lodgment day to do so as they otherwise thought they could.  The variation will not adversely affect the rights of those persons or impose any liabilities.

4. Incorporation by reference

As a result of this variation ASIC Class Order [CO 05/1270] will incorporate by reference ASIC Class Orders [CO 02/239], [CO 03/184] and [CO 04/10].  A copy of the incorporated instruments may be obtained from ASIC’s website: http://www.asic.gov.au/co.

5. Consultation

Given the technical nature of ASIC Class Order [CO 06/704], no consultation was undertaken before it was made.

[1]  Each affected instrument was made before 1 January 2005 and was amended on or after that date.  Subsection 29(2) of the LIA brought forward the due date for the lodgment of each of those instruments from 30 September 2006 to:

  • in the case of ASIC Class Order [02/239], 27 March 2006; and
  • in the case of ASIC Class Orders [CO 03/184] and [CO 04/10], 7 April 2006.

Overview

ASIC Class Order [CO 06/704] was enacted in 2006 by the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001. The purpose of this class order was to address the issue of certain ASIC instruments becoming inoperative due to non-compliance with the Legislative Instruments Act 2003. Specifically, it aimed to reinstate the intended effects of three affected instruments which had not been lodged for registration by the required deadlines, thereby restoring their enforceability and ensuring that reliance on them was not prejudiced. ASIC Class Order [CO 06/704] was designed to seamlessly incorporate the previously inoperative instruments [CO 02/239], [CO 03/184], and [CO 04/10] into its framework, thereby maintaining the regulatory environment without disrupting the rights or imposing new liabilities on those who relied on the instruments. Given the technical nature of the class order, no consultation was undertaken prior to its enactment.

Scope and Application

ASIC Class Order [CO 06/704] applies to ensure the continued efficacy of specific financial instruments that were rendered inoperative under the Legislative Instruments Act 2003 due to non-compliance with lodgment requirements. This class order specifically addresses three prior class orders, namely ASIC Class Orders [CO 02/239], [CO 03/184], and [CO 04/10], which were not registered within the required timeframe and thus ceased to have legal effect. The primary objective of this class order is to reinstate the intended regulatory effects of these earlier instruments, thereby protecting the interests of those who have relied on them. This class order extends its application across the Commonwealth of Australia, ensuring that the regulatory provisions remain enforceable and consistent with the Corporations Act 2001. It does not introduce new exemptions or thresholds but rather seeks to rectify the unintended consequences of the legislative instrument act on these specific instruments. Additionally, the class order does not extend its application through subordinate instruments but rather operates directly under the authority granted by the specified sections of the Corporations Act 2001.

Key Provisions

ASIC Class Order [CO 06/704], prepared by the Australian Securities and Investments Commission (ASIC), operates under the Corporations Act 2001 (sections 283GA(1)(a), 341(1), 601QA(1)(a) and (b), 741(1)(a), 911A(2)(l), 926A(2)(a), 951B(1)(a) and (c), 992B(1)(a), and 1020F(1)(a) and (c)). This class order provides relief from certain provisions in Chapters 2L, 5C, 6D, and 2M of the Act, which deal with debentures, managed investment schemes, fundraising, financial reports, and audits, respectively. Furthermore, it allows exemptions from holding an Australian financial services licence and from certain licensing provisions for financial services providers. It also permits exemptions from financial services disclosure requirements, financial product disclosure, and other provisions related to the issue, sale, and purchase of financial products. The ASIC Class Order [CO 06/704] imposes specific obligations and requirements on the parties and entities it governs. Primarily, it ensures that the intended effects of the previously inoperative instruments are reinstated. This includes ensuring that persons who have relied on the affected instruments can continue to do so without adverse effects to their rights or imposition of new liabilities. The order also mandates that ASIC Class Order [CO 05/1270] incorporates by reference the affected instruments [CO 02/239], [CO 03/184], and [CO 04/10]. These incorporated instruments can be accessed via ASIC’s website. Failure to comply with the provisions of ASIC Class Order [CO 06/704] could result in various legal consequences. The Corporations Act 2001 outlines potential offences, penalties, and civil or criminal consequences for breaches. These may include fines and imprisonment, depending on the severity of the breach. The exact penalties vary and can be severe, reflecting the importance of adhering to the regulatory framework established by the Act. The precise penalties for breaches are detailed in the relevant sections of the Corporations Act 2001, but they generally include substantial financial penalties and potential imprisonment terms for serious violations.

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Definitions & Interpretation
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.