ASIC Class Order [CO 10/907]
Exempted special purpose funding entities – deferral of start date for EDR scheme membership
This instrument has effect under s41(3)(d) of Schedule 2 to the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 and s109(3)(d) of the National Consumer Credit Protection Act 2009.
This compilation was prepared on 16 December 2010 taking into account amendments up to [CO 10/1225]. See the table at the end of this class order.
Prepared by the Australian Securities and Investments Commission.
Australian Securities and Investments Commission
National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 — Paragraph 41(3)(d) of Schedule 2 — Declaration
National Consumer Credit Protection Act 2009 — Paragraph 109(3)(d) — Declaration
Enabling provision
1. The Australian Securities and Investments Commission (ASIC) makes this instrument under:
(a) paragraph 41(3)(d) of Schedule 2 to the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 (the Transitional Credit Act); and
(b) paragraph 109(3)(d) of the National Consumer Credit Protection Act 2009 (the Credit Act).
Title
2. This instrument is ASIC Class Order [CO 10/907].
Commencement
3. This instrument commences on the day it is registered under the Legislative Instruments Act 2003.
Note: An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register). The FRLI may be accessed at http://www.frli.gov.au/.
Declaration
4. ASIC declares that the provisions to which Part 5 of Schedule 2 to the Transitional Credit Act applies apply in relation to all persons as if Part 4 of the National Consumer Credit Protection (Transitional and Consequential Provisions) Regulations 2010 were modified or varied as follows:
(a) in paragraph 14B(1)(c) before “it”, insert “on and after 1 April 2011,”;
(b) in paragraph 14C(1)(c) omit “1 October 2010,”, substitute “1 April 2011,”.
5. ASIC declares that the provisions to which Part 2-6 of the Credit Act applies apply in relation to all persons as if Part 2-4 of the National Consumer Credit Protection Regulations 2010 were modified or varied by, in paragraph 23C(1)(c), omitting “on and after 1 October 2010,”.
Notes to ASIC Class Order [CO 10/907]
Note 1
ASIC Class Order [CO 10/907] (in force under s41(3)(d) of Schedule 2 to the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 and s109(3)(d) of the National Consumer Credit Protection Act 2009) as shown in this compilation comprises that Class Order amended as indicated in the tables below.
Table of Instruments
Instrument number | Date of FRLI registration | Date of commencement | Application, saving or transitional provisions |
[CO 10/907] | 1/10/2010 (see F2010L02567) | 1/10/2010 | |
[CO 10/1225] | 16/12/2010 (see F2010L03247) | 16/12/2010 | - |
| | | |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Subpara 4(a)....... | am. [CO 10/1225] |
Subpara 4(b)....... | am. [CO 10/1225] |
Overview
ASIC Class Order [CO 10/907], enacted under the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 and the National Consumer Credit Protection Act 2009, aims to address transitional issues concerning the membership of exempted special purpose funding entities in the Electronic Depositary Regime (EDR) scheme. This legislative instrument was prepared by the Australian Securities and Investments Commission (ASIC) and was registered on 1 October 2010, with subsequent amendments up to [CO 10/1225] incorporated in a compilation dated 16 December 2010. The Class Order modifies the commencement dates for certain provisions related to EDR scheme membership for exempted special purpose funding entities, deferring their start date from 1 October 2010 to 1 April 2011. This adjustment was made to ensure a smoother transition for entities affected by the new regulations, thereby facilitating compliance with the credit protection framework established by the National Consumer Credit Protection Act 2009.
Scope and Application
ASIC Class Order [CO 10/907] applies to all persons within the Commonwealth of Australia, as declared under sections 41(3)(d) of Schedule 2 to the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 and 109(3)(d) of the National Consumer Credit Protection Act 2009. This instrument modifies the transitional provisions concerning the Electronic Direct Reimbursement (EDR) scheme membership start date for exempted special purpose funding entities. Specifically, it defers the start date for EDR scheme membership from 1 October 2010 to 1 April 2011. The changes are intended to provide relief to entities affected by the original transitional timeline, thereby ensuring a smoother implementation of the regulatory requirements set forth in the National Consumer Credit Protection framework. The Class Order was registered under the Legislative Instruments Act 2003 and commenced on the date of its registration.
Key Provisions
ASIC Class Order [CO 10/907] serves as a legislative instrument under the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 and the National Consumer Credit Protection Act 2009. The primary purpose of this Class Order is to modify the start date for exempted special purpose funding entities (SPEs) to join the Eligible Depositor Relief (EDR) scheme. Specifically, section 4(a) and 4(b) of the Class Order amend the commencement dates for certain provisions related to SPEs' membership in the EDR scheme. Instead of starting on 1 October 2010, the new effective date is set for 1 April 2011, as stated in sections 4(a) and 4(b). This amendment applies to all relevant persons as if certain paragraphs in the National Consumer Credit Protection (Transitional and Consequential Provisions) Regulations 2010 and the National Consumer Credit Protection Regulations 2010 were modified.
The obligations and requirements imposed by this Class Order primarily affect entities that are categorised as exempted SPEs. These entities must adhere to the amended commencement date for joining the EDR scheme. Essentially, they are required to comply with the new timeline for becoming members of the EDR scheme, which now starts on 1 April 2011 rather than the previously scheduled date of 1 October 2010. This change ensures that these entities have additional time to prepare and meet the necessary criteria for EDR scheme membership.
Non-compliance with the provisions outlined in ASIC Class Order [CO 10/907] could lead to various consequences, although the Class Order itself does not explicitly detail specific penalties or offences. However, the underlying legislation, the National Consumer Credit Protection Act 2009, does provide for potential penalties. For breaches of the Act, individuals or entities could face civil penalties, including fines, and may also be subject to criminal sanctions. The exact penalties can vary depending on the nature and severity of the breach, but the Act provides a framework for enforcement actions that could include substantial financial penalties and, in some cases, imprisonment for serious or repeated violations.