ASIC Class Order [CO 07/151]

Administered by Department of the Treasury

Legislation au F2007L01527 Not in force Legislative Instrument

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ASIC CLASS ORDER [CO 07/151]

EXPLANATORY STATEMENT

Prepared by the Australian Securities and Investments Commission

Corporations Act 2001

The Australian Securities and Investments Commission (ASIC) makes Class Order [CO 07/151] Variations to Class Order [CO 02/260], [CO 02/262], [03/237], [03/957] and [03/1092] 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. Background

The Corporations Amendment Regulations 2005 (No. 5) (Refinements Regulations), made on 15 December 2005, introduced a number of changes to the regulation of financial products and financial services under Ch 7 of the Act and the Corporations Regulations 2001 (Corporations Regulations).

One significant change made by the Refinements Regulations to the product disclosure framework in Pt 7.9 of the Act, is the introduction of the Short-Form Product Disclosure Statement (Short-Form PDS) (reg 7.9.61AA). Under this change, product issuers (except for issuers of general insurance products) can give to their retail clients a Short-Form PDS instead of a PDS.

A Short-Form PDS is a document that summarises key information that is contained in a PDS for the same financial product (eg information about the issuer, benefits, risks, costs, return, dispute resolution and cooling off). The Short-Form PDS requirements are contained in Div 3A of Pt 7.9, inserted into the Act by reg 7.9.61AA. The application form requirements in s1016A and 1061E of the Act apply to Short-Form PDSs

ASIC has considered whether or not to extend existing class order relief applicable to PDSs to Short-Form PDSs.

2. Purpose of the class order

[CO 07/151] is intended to maximise the regulatory value of the Refinements Regulations, by ensuring that existing ASIC class order relief for PDSs applies to Short-Form PDS as far as possible.

Class Order [CO 02/260] Product Disclosure Statements — application forms created by a licensee

Class Order [CO 02/260] Product Disclosure Statements — application forms created by a licensee facilitates the issue by a financial services licensee of application forms which are not copied or directly derived from the application form which was prepared by the issuer or seller and were not otherwise included in or with the Product Disclosure Statement.

ASIC has decided to extend this relief to Short-Form PDSs. Class Order [CO 06/803] varies the existing relief instrument to achieve this result.

Class Order [CO 02/262] Applications to switch managed investment products

In its present form, Class Order [CO 02/262] Applications to switch managed investment products provides relief from s1016A and 1016E to regulated persons to allow switching between managed investment products without receiving an application form that was included in or accompanied by a current PDS.

ASIC has decided to extend this relief to Short-Form PDSs. Class Order [CO 07/151] varies [CO 02/262] to achieve this result.

Class Order [CO 03/237] Updated information in product disclosure statements

Class Order [CO 03/237] Updated information in product disclosure statements provides an exemption from the requirement to include updated information in the PDS, where certain requirements are met.

ASIC has decided to extend this relief to Short-Form PDSs. Class Order [CO 07/151] varies [CO 03/237] to achieve this result.

Class Order [CO 03/957] ASX managed investment warrants — disclosure and reporting exemptions

Class Order [CO 03/957] ASX managed investment warrants — disclosure and reporting exemptions exempts all issuers of Australian Stock Exchange traded instalment warrants over managed investment products from certain PDS content and procedural requirements under Pt 7.9 of the Act that would otherwise apply because of the characterisation of the warrants as “managed investment products”.

The class order also clarifies that where the managed investment warrant might be characterised as an “enhanced disclosure” security, warrant issuers are exempt from the Ch 2M reporting and Ch 6CA continuous disclosure requirements but are subject to the continuous disclosure requirements under Pt 7.9.

ASIC has decided to extend this relief, where relevant, to Short-Form PDSs. Class Order [07/151] varies the existing relief instrument to achieve this result.

Class Order [CO 03/1092] Further relief for joint product disclosure statements

Class Order [CO 03/1092] Further relief for joint product disclosure statements permits two or more product issuers to prepare joint PDSs where certain conditions are met.

ASIC has decided to extend this relief to Short-Form PDSs. Class Order [CO 07/151] varies the existing relief instrument to achieve this result.

3. Operation of the class order

Paragraph 4 of [CO 07/151] varies [CO 02/260] so that the relief in that class order also applies to Short-Form PDSs.

Paragraph 5 of [CO 07/151] varies [CO 02/262], so that the relief in that class order also applies to Short-Form PDSs.

Paragraph 6 of [CO 07/151] varies [CO 03/237], so that the relief in that class order also applies to Short-Form PDSs.

Paragraph 7 of [CO 07/151] varies [CO 03/957], so that the relief in that class order also applies to Short-Form PDSs.

Paragraph 8 of [CO 07/151] varies [CO 03/1092], so that the relief in that class order also applies to Short-Form PDSs.

4. Consultation

ASIC did not undertake any specific consultation with other stakeholders before [CO 07/151] was made because it is of a minor and machinery nature.

Overview

The ASIC Class Order [CO 07/151], enacted under section 1020F(1)(a) of the Corporations Act 2001, aims to address the regulatory framework concerning Short-Form Product Disclosure Statements (Short-Form PDSs) introduced by the Corporations Amendment Regulations 2005 (No. 5). This legislative instrument was created by the Australian Securities and Investments Commission (ASIC) to ensure that existing class order reliefs applicable to Product Disclosure Statements (PDSs) are extended to Short-Form PDSs as far as possible. The purpose is to streamline the regulatory requirements for financial product disclosures, ensuring consistency and efficiency in how financial products are disclosed to retail clients. ASIC has extended the reliefs from various existing class orders to Short-Form PDSs to maximise the regulatory value of the Refinements Regulations. This includes extending the relief for application forms created by a licensee (Class Order [CO 02/260]), allowing switching between managed investment products without an application form included in or accompanied by a current PDS (Class Order [CO 02/262]), exempting from the requirement to include updated information in the PDS (Class Order [CO 03/237]), and permitting exemptions for issuers of Australian Stock Exchange traded instalment warrants over managed investment products (Class Order [CO 03/957]). Additionally, it extends relief for joint product disclosure statements (Class Order [CO 03/1092]) to Short-Form PDSs. ASIC did not undertake specific consultations before enacting this class order as it is considered minor and procedural.

Scope and Application

The ASIC Class Order [CO 07/151] applies to financial services licensees and issuers of financial products in Australia, particularly those who issue Short-Form Product Disclosure Statements (PDS) as part of their regulatory obligations under the Corporations Act 2001. This class order modifies existing relief applicable to standard PDSs to extend the same relief to Short-Form PDSs, ensuring consistency in regulatory treatment across both document types. It specifically addresses class orders [CO 02/260], [CO 02/262], [CO 03/237], [CO 03/957], and [CO 03/1092], which were previously established to provide certain exemptions and reliefs for standard PDSs. These modifications aim to maintain the regulatory value introduced by the Corporations Amendment Regulations 2005 (No. 5), which allowed for the use of Short-Form PDSs as an alternative to full PDSs for certain financial products. The class order does not introduce new exemptions or thresholds but extends existing ones to ensure that the regulatory framework remains effective and up-to-date with industry practices. The changes are implemented through subordinate instruments, specifically by varying the existing class orders to include Short-Form PDSs within their scope.

Key Provisions

The ASIC Class Order [CO 07/151] under the Corporations Act 2001 (the Act) (s1020F(1)(a)) aims to extend existing class order reliefs applicable to Product Disclosure Statements (PDS) to Short-Form Product Disclosure Statements (Short-Form PDS) (ss 1016A and 1061E). This extension seeks to ensure that the regulatory value of the Refinements Regulations introduced in 2005 is maximised. Specifically, the Class Order varies existing class orders ([CO 02/260], [CO 02/262], [CO 03/237], [CO 03/957], and [CO 03/1092]) to apply them to Short-Form PDSs, thereby providing relief from certain requirements for product issuers when delivering these documents to retail clients. The obligations imposed by this Class Order require product issuers to adhere to the existing class order reliefs when issuing Short-Form PDSs. For instance, under Class Order [CO 02/260], a licensee can issue application forms that are not copied from the issuer’s application form or included with the Short-Form PDS. Similarly, Class Order [CO 02/262] allows switching between managed investment products without the need for an application form included in or with a current Short-Form PDS. Class Order [CO 03/237] exempts product issuers from including updated information in Short-Form PDSs, provided certain conditions are met. Class Order [CO 03/957] offers exemptions from certain PDS content and procedural requirements for issuers of ASX-traded instalment warrants over managed investment products, where relevant. Finally, Class Order [CO 03/1092] allows joint product issuers to prepare joint Short-Form PDSs under specific conditions. Failure to comply with the provisions of the Class Order may result in regulatory consequences. The Act does not explicitly state penalties for non-compliance with Class Orders; however, breaches of the Act or associated regulations can lead to civil or criminal penalties. For example, breaches of disclosure requirements under the Act may result in penalties of up to $2 million for individuals and $10 million for corporations, as per the general penalty provisions in the Act (s1317E). Additionally, officers and directors may face personal penalties for breaches, including fines and imprisonment, as specified in the relevant sections of the Act.

Area of Law: Corporate Law & Governance
Instrument: Regulation
Concepts: Regulatory Standards; Reporting & Disclosure Obligations; Licensing & Registration

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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.

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