ASIC CLASS ORDER [CO 07/410]

EXPLANATORY STATEMENT

Prepared by the Australian Securities and Investments Commission

Corporations Act 2001

The Australian Securities and Investments Commission (ASIC) makes Class Order [CO 07/410] Actuaries: Further Extended Transitional Relief under s911A(2)(1) of the Corporations Act 2001 (the Act).

Section 911A(2)(1) provides that a person is exempt from the requirement to hold an Australian financial services licence (AFSL) for a financial service they provide where the provision of the service is covered by an exemption specified by ASIC in writing and published in the Gazette.

1. Background

Class Order [CO 03/1096] Actuaries gives relief to actuaries by providing an exemption from the requirement to hold an AFSL in relation to the professional actuarial services they provide.

[CO 03/1096] was originally due to expire on 1 July 2005.  Since then, ASIC has extended the relief on four occasions, as follows:

• Class Order [CO 05/680] Transitional Relief for Actuaries extended the relief until 1 January 2006;
• Class Order [CO 05/1194] Actuaries — amendment extended the relief until 1 July 2006;
• Class Order [CO 06/469] Further transitional relief for actuaries extended the relief until 31 December 2006; and
• Class Order [CO 06/1012] Variation of Class Orders [CO 03/1096] and [CO 06/495] extended the relief for actuaries until 30 June 2007.

2. Purpose of the class order

The purpose of [CO 07/410] is to extend the relief in [CO 03/1096] for a further two months while the Government finalises its position on granting permanent relief to actuaries.

3. Operation of the class order

[CO 07/410] amends the relief set out in [CO 03/1096] by varying the date before which advice given by actuaries, which satisfies all of the stated conditions, falls within the exemption.  This date has been varied by extending it from 30 June 2007 to 31 August 2007.

4. Consultation

ASIC consulted with Government before [CO 07/410] was made.  ASIC did not undertake any specific consultation with other stakeholders before [CO 07/410] was made as it is of a minor and machinery nature, and does not substantially alter existing arrangements.