ASIC CLASS ORDER [CO 10/246]

EXPLANATORY STATEMENT

Prepared by the Australian Securities and Investments Commission

Corporations Act 2001

The Australian Securities and Investments Commission (ASIC) makes ASIC Class Order [CO 10/246] for the purposes of subparagraphs 912A(2)(b)(i) and 1017G(2)(b)(i) of the Corporations Act 2001 (the Act).

1. Background

Subparagraphs 912A(2)(b)(i) and 1017G(2)(b)(i) of the Act require an Australian financial service (AFS) licensee, unlicensed secondary seller and unlicensed product issuer to be a member of one or more external dispute resolution scheme that:

(a)   is, or are, approved by ASIC; and

(b)   covers complaints made by retail clients against the AFS licensee, unlicensed secondary seller or unlicensed product issuer in relation to the financial services provided.

ASIC Class Order [CO 09/340] specifies the external dispute resolution schemes that have been approved by ASIC.   

2. Purpose of the class order

The purpose of the class order is to revoke the approval of the Financial Co-Operative Dispute Resolution Scheme as it has voluntarily ceased operations.

3. Operation of the class order

This class order varies ASIC Class Order [CO 09/340] by removing the name of the Financial Co-Operative Dispute Resolution Scheme.

4. Consultation

ASIC did not engage in consultation before making this class order as it is of a minor and machinery nature.

Before making ASIC Class Order [CO 09/340], ASIC consulted with relevant industry stakeholders on ASICs approval requirements for external dispute resolution schemes. The consultation process included the publication of Consultation Paper 102 Dispute resolution – review of RG 139 and RG 165 in November 2008, which outlined ASICs proposals for our approval requirements of external dispute resolution schemes.  Consultation Paper 102 sought comments from stakeholders. 

ASIC prepared a Regulation Impact Statement for the policy underlying [CO 09/340], which was approved by the Office of Best Practice Regulation.