ASIC Class Order [CO 10/630]

Overview

The ASIC Class Order [CO 10/630], enacted under the Corporations Act 2001, was introduced to address issues surrounding the disclosure of long-term superannuation returns to ensure that superannuation fund members are better informed about their investments. This legislative instrument, prepared by the Australian Securities and Investments Commission (ASIC), aims to modify the Corporations Regulations 2001 to provide clearer guidelines on the circumstances in which long-term superannuation returns need to be disclosed. The policy objective is to enhance transparency and assist members in making informed decisions about their superannuation investments. The instrument commenced on 19 July 2010 and has been subject to several amendments, the most recent of which was ASIC Corporations (Amendment) Instrument 2015/1073, which commenced on 10 December 2015.

Scope and Application

ASIC Class Order [CO 10/630] pertains to the long-term superannuation returns and operates under the Corporations Act 2001, specifically s1020F(1)(c). This legislation applies to all entities and individuals involved in the management and regulation of superannuation funds, encompassing regulated superannuation funds, approved deposit funds, and pooled superannuation trusts, but excluding self-managed superannuation funds. The geographic scope of this Class Order is national, covering the entire Commonwealth of Australia. It modifies and varies Part 7.9 of the Corporations Regulations 2001 to address certain exemptions, such as non-investment or accumulation life insurance policies, superannuation products without an investment component, and periodic statements given to members. The Class Order also allows trustees to provide information about certain superannuation entities through a website. This legislation, through subordinate instruments, has been amended and updated several times since its initial registration on 19 July 2010, with the most recent amendment commencing on 10 December 2015.

Key Provisions

The main operative sections of ASIC Class Order [CO 10/630], which applies under section 1020F(1)(c) of the Corporations Act 2001, include modifications to Part 7.9 of the Act. Specifically, section 4(a) exempts certain superannuation products from the requirements of subregulation 7.9.20AA(1) if they are non-investment or accumulation life insurance policies, risk-only superannuation products, or periodic statements to members of a regulated superannuation fund. Section 4(b) to (f) updates references from "2010" to "2011" in various subregulations, and section 4(f) permits trustees of superannuation entities (excluding self-managed superannuation funds) to provide information about regulated, approved deposit, or pooled superannuation funds via a website. These changes aim to streamline compliance requirements and provide clearer guidance on information disclosure. The obligations imposed by this Class Order primarily affect trustees of superannuation entities, particularly those managing regulated, approved deposit, or pooled superannuation funds. Trustees must ensure that they do not apply certain disclosure requirements to exempted superannuation products as specified in section 4(a). Furthermore, they must comply with the updated references and deadlines set out in sections 4(b) to (f). Trustees are also required to make information about their funds available on a website as per section 4(f), ensuring that this information is easily accessible to holders. Breaches of the requirements set out in this Class Order may result in various consequences. While the Class Order itself does not explicitly state specific penalties, violations of the underlying Corporations Act 2001 could lead to civil penalties for individuals, corporations, or other entities. Civil penalties under the Corporations Act can include fines up to $210,000 for individuals and $1,050,000 for corporations, depending on the severity and nature of the breach. Additionally, breaches may lead to criminal sanctions if the conduct is deemed serious enough, which can result in imprisonment for individuals. The precise penalties and consequences would be determined by the courts based on the specific circumstances of each case.