ASIC Class Order [CO 13/752]

Administered by Department of the Treasury

Legislation au F2013L01385 Not in force Legislative Instrument

Legislation content

ASIC CLASS ORDER [CO 13/752]

 

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 13/752] under paragraph 1020F(1)(c) of the Corporations Act 2001 (the Act).

Paragraph 1020F(1)(c) of the Act provides that ASIC may declare that Part 7.9 of the Act applies in relation to a person or a financial product, or a class of persons or financial products, as if specified provisions were omitted, modified or varied as specified in the declaration.

  1. Background

 

Regulation 7.9.20AA of the Corporations Regulations 2001 (the Regulations) require regulated superannuation funds (other than self-managed superannuation funds) to disclose long term performance returns to assist members to understand the long term performance of their superannuation. These are referred to in this Explanatory Statement as the “long term performance reporting regime”.

 

On 19 February 2010, following discussions with the superannuation industry, the Minister for Financial Services, Superannuation and Corporate Law announced refinement proposals to the long term performance reporting regime.

 

Under the proposals:

 

(a)                exit statements are to be excluded from the regime;

 

(b)               industry were permitted to use inserts to provide five-year performance information until 30 June 2011;

 

(c)                “traditional” funds of an insurance nature are to be exempted from the regime; and

 

(d)               approved deposit funds and pooled superannuation trusts are to be permitted to provide annual reports online.

 

Class Order [CO 10/630] (the principal class order) provides relief from the operation of the current long term performance reporting regime that are proposed to be refined, by implementing the proposed refinements pending the commencement of amending regulations. This assists industry by providing greater certainty regarding their compliance obligations.

 

The principal class order also extended transitional disclosure requirements under subregulation 7.9.20AA(2) of the Regulations so that it also covered the period from 1 July 2010 to 30 June 2011.

 

ASIC subsequently made Class Orders [CO 11/554] and [CO12/622], which varied the principal class order to extend the maximum period of operation of the principal class order to 19 July 2013.  Class Orders [CO 11/554] and [CO 12/622] did not extend the transitional disclosure requirements under subregulation 7.9.20AA(2) of the Regulations for a period beyond 30 June 2011.

 

2. Purpose of the class order

The purpose of this class order is to extend the maximum period of the operation of the principal class order for a further 12 months so as to allow additional time for the proposed amending regulations to be made to implement the refinements announced by the Minister.

3. Operation of the class order

This class order extends the operation of the principal class order to the earlier of:

(a)               the commencement of amendments to the Regulations which have the same or similar effect to the modifications or variations made by the principal class order; and

(b)               19 July 2014.
 

4. Consultation

 

Before making this class order, ASIC consulted with the Department of the Treasury, but did not engage in consultation with industry. The class order is a transitional measure of a minor or machinery nature.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the

Human Rights (Parliamentary Scrutiny) Act 2011

 

ASIC Class Order [CO 13/752]

 

This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of legislative instrument

 

The purpose of this legislative instrument is to amend ASIC Class Order [CO 10/630] (the principal class order).  The principal class order provides relief from the operation of the current long term superannuation performance reporting requirements that are proposed to be refined by amending regulation.  The principal class order modifies or varies Regulations 7.9.20AA and 7.9.75BA of the Corporations Regulations 2001(Regulations) to:

 

(a)                exclude exit statements from the regime;

 

(b)               permit the use of inserts to provide five-year performance information until 30 June 2011;

 

(c)                exempt “traditional” funds of an insurance nature from the regime; and

 

(d)               permit approved deposit funds and pooled superannuation trusts to provide annual reports online.

 

The principal class order has effect until the earlier of commencement of any amendments to the Regulations which have the same or similar effect to the modifications or variations contained in the class order and 36 months after the commencement of the class order.

 

This legislative instrument extends the maximum period of the operation of the principal class order until 19 July 2014.

 

Human rights implications

 

This legislative instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This legislative instrument is comparable with human rights as it does not raise any human rights issues.

Overview

The ASIC Class Order [CO 13/752] was enacted in 2013 by the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001. This legislative instrument was introduced to address the need for additional time to implement proposed refinements to the long term performance reporting regime for superannuation funds, which was intended to enhance the transparency and understanding of superannuation fund performance by members. The principal class order, [CO 10/630], had already provided relief from the current reporting regime pending the enactment of amending regulations. The purpose of the new class order was to extend the operation of the principal class order by a further 12 months to allow time for the proposed regulatory changes to be finalised and implemented. This extension was seen as a transitional measure to provide certainty for the industry during the regulatory amendment process. The class order was enacted without public consultation, as it was considered a minor or machinery nature measure.

Scope and Application

The ASIC Class Order [CO 13/752] applies to regulated superannuation funds, excluding self-managed superannuation funds, and the financial product of long term performance returns. The class order aims to refine the existing long term performance reporting regime under the Corporations Act 2001, and it operates in the Commonwealth jurisdiction of Australia. The scope of this class order includes the exclusion of exit statements from the reporting regime, the allowance for industry to use inserts for providing five-year performance information until 30 June 2011, the exemption of "traditional" funds of an insurance nature, and the permission for approved deposit funds and pooled superannuation trusts to provide annual reports online. The operation of this class order extends the principal class order, [CO 10/630], until the earlier of the commencement of amending regulations with similar effect or 19 July 2014. ASIC has considered this class order to be compatible with human rights as it does not engage any applicable rights or freedoms.

Key Provisions

The main operative sections of ASIC Class Order [CO 13/752] (paragraphs 3 and 4) extend the duration of the principal class order [CO 10/630]. This extension allows for a further 12 months of relief from the current long-term superannuation performance reporting regime. The principal class order modifies the Corporations Regulations 2001 by excluding exit statements, permitting the use of inserts for five-year performance information until 30 June 2011, exempting “traditional” funds of an insurance nature, and allowing approved deposit funds and pooled superannuation trusts to provide annual reports online. The extended class order will remain in effect until either the commencement of amendments to the Regulations that achieve the same effect as the principal class order or 19 July 2014, whichever comes first. The obligations and requirements imposed by this Act are centred around providing clarity and certainty to regulated superannuation funds. It requires these funds to modify their reporting practices to exclude exit statements, use inserts for five-year performance information, and exempt certain funds from the reporting regime. Additionally, it allows approved deposit funds and pooled superannuation trusts to provide annual reports online. The Act ensures that these changes are temporary and contingent on the introduction of amending regulations, thus easing compliance burdens on the superannuation industry. There are no explicit offences, penalties, or civil/criminal consequences outlined for breaches of this class order. However, the overarching framework established by the Corporations Act 2001 means that any failure to comply with the provisions of the Act or the regulations could lead to enforcement actions by ASIC. These actions might include administrative penalties, court orders, or other regulatory measures to ensure compliance. The precise consequences for non-compliance would depend on the nature and severity of the breach, as well as the specific provisions of the Act and related regulations.

Legal classification tags

Area of Law
Corporate Law & Governance
Instrument
Class Order
Concepts
Regulatory Standards
Compliance Obligations
Transitional Provisions

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.