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.
Overview
The Australian Securities and Investments Commission Class Order [CO 07/410], issued under section 911A(2)(1) of the Corporations Act 2001, provides further extended transitional relief to actuaries by exempting them from the requirement to hold an Australian financial services licence (AFSL) for the professional actuarial services they provide. This legislative measure was enacted to address the need for continued relief for actuaries, following several previous extensions to the original exemption provided by Class Order [CO 03/1096]. The purpose of Class Order [CO 07/410] was to grant a further two-month extension while the Government deliberated on granting permanent relief to actuaries. The order was made after consultation with the Government but without specific consultation with other stakeholders due to its minor and machinery nature.
Scope and Application
The ASIC Class Order [CO 07/410], issued under section 911A(2)(1) of the Corporations Act 2001, provides an exemption from the requirement for actuaries to hold an Australian financial services licence (AFSL) when providing professional actuarial services. This exemption is part of a series of transitional reliefs initially introduced by Class Order [CO 03/1096] and subsequently extended on multiple occasions to allow time for the government to finalise its position on permanent relief. This latest class order extends the exemption period from 30 June 2007 to 31 August 2007, thereby allowing actuaries to continue providing specified services without the need for an AFSL for an additional two months. The class order applies to all actuaries who provide professional actuarial services as defined under the exemption conditions, and its reach is limited to the Commonwealth of Australia. The exemption does not substantially alter existing arrangements, and while ASIC consulted with the government before issuing the class order, no specific consultation with other stakeholders was undertaken as the changes were deemed minor and of a machinery nature.
Key Provisions
The ASIC Class Order [CO 07/410] provides further extended transitional relief for actuaries, exempting them from the requirement to hold an Australian financial services licence (AFSL) for certain professional services they provide (section 911A(2)(1) of the Corporations Act 2001). This relief extends the exemption period from 30 June 2007 to 31 August 2007, giving actuaries additional time while the Government considers permanent relief. This extension modifies the relief previously set out in Class Order [CO 03/1096], which was initially meant to expire on 1 July 2005 but has been extended several times already.
The obligations imposed by this Class Order on actuaries are primarily to ensure that any advice they provide falls within the specified exemption conditions. Actuaries must ensure that the advice they give satisfies all the conditions set out in the Order to remain exempt from needing an AFSL. This includes adhering to the extended date of 31 August 2007 and ensuring that the advice given is genuinely within the scope of professional actuarial services. The Order does not introduce new obligations but reiterates and extends the existing exemption conditions.
Failure to comply with the requirements of the Class Order may lead to civil or criminal consequences. While the Order itself does not explicitly outline specific penalties for non-compliance, the underlying Corporations Act 2001 provides for penalties. Actuaries who provide services outside the exemption conditions may be subject to penalties under the Act, which can include fines and, in severe cases, imprisonment. The maximum penalties are determined by the severity of the breach and are in line with the provisions of the Corporations Act 2001. This ensures that actuaries understand the importance of adhering to the exemption conditions to avoid potential legal repercussions.