Overview

The Australian Securities and Investments Commission (ASIC) introduced Class Order [CO 07/862] in 2007 as a variation of Class Order [CO 07/753] under the Corporations Act 2001. This legislative amendment was enacted to correct minor inaccuracies in the references to Singaporean legislation within [CO 07/753], which pertains to Singaporean collective investment schemes. The primary purpose of this class order was to address minor anomalies in the existing order, ensuring consistency and accuracy in the legislative framework governing collective investment schemes. Enacted under the authority provided by the Corporations Act, [CO 07/862] was issued in response to an application from the Monetary Authority of Singapore, reflecting a cooperative effort between the two regulatory bodies to maintain the integrity of financial regulations across jurisdictions. Given the minor nature of the amendments, consultation was deemed unnecessary.

Scope and Application

The ASIC Class Order [CO 07/862], made under the Corporations Act 2001, specifically targets the correction of minor inaccuracies in the preceding Class Order [CO 07/753], which deals with Singaporean collective investment schemes. This amendment is made to ensure that references to Singaporean legislation within [CO 07/753] are accurate and reflect the correct sections of the Securities and Futures Act (Cap. 289) of Singapore. The Class Order applies to any person or entity that falls under the scope of [CO 07/753], particularly those involved in the management or operation of Singaporean collective investment schemes in Australia. Geographically, the order applies across Australia, aligning with the national regulatory framework overseen by ASIC. There are no exclusions or exemptions specified in this Class Order; it is a technical amendment designed to correct prior legislative references. The authority to make such amendments is derived from specific sections of the Corporations Act, including sections 601QA(1)(a), 911A(2)(l), 1020F(1)(a), and 1020F(1)(c), which provide ASIC with the power to exempt certain classes of persons from regulatory provisions and to modify or vary the application of legislative parts as necessary.

Key Provisions

The main operative sections of ASIC Class Order [CO 07/862] involve amendments to previous Class Order [CO 07/753], specifically addressing and correcting references to Singaporean legislation that were previously inaccurate. Section 601QA(1)(a) allows ASIC to exempt certain classes of persons from the provisions of Chapter 5C of the Corporations Act 2001. Meanwhile, Section 911A(2)(l) empowers ASIC to exempt a class of persons from the requirement to hold an Australian Financial Services Licence under Part 7.6 of the Act. Additionally, Section 1020F(1)(a) and (c) of the Act enable ASIC to exempt a class of persons from the provisions of Part 7.9 of the Act, as well as to declare that Part 7.9 applies with modifications or omissions as specified. The Class Order imposes certain obligations and requirements on the entities it governs. It mandates that any amendments or variations to the Class Order must follow the statutory requirements set forth in the Corporations Act 2001. The Order specifically requires accurate referencing of Singaporean laws in the context of foreign collective investment schemes, ensuring compliance with both Australian and Singaporean legal frameworks. Furthermore, the entities governed by the Class Order must ensure that any references within their documentation to the Securities and Futures Act (Cap. 289) of Singapore are accurate and correctly reflect the current legal provisions. Failure to comply with the requirements outlined in the Class Order may lead to various consequences, including the imposition of penalties. While specific penalties are not detailed in the explanatory statement, breaches of the Corporations Act 2001 can result in substantial civil and criminal penalties. For instance, individuals and corporate entities may face fines, imprisonment, or both, depending on the severity and nature of the breach. The exact penalties can vary widely, but they are designed to enforce compliance and deter non-compliance with financial regulations. In summary, ASIC Class Order [CO 07/862] serves to correct minor inaccuracies in the previously issued Class Order [CO 07/753]. It mandates precise referencing of Singaporean laws in the context of foreign collective investment schemes and imposes obligations on entities to comply with these references. Non-compliance can result in significant penalties, reinforcing the importance of adherence to the provisions set forth in the Corporations Act 2001.