ASIC Class Order [CO 14/541]
About this compilation
Compilation No. 4
This is a compilation of ASIC Class Order [CO 14/541] as in force on 18 December 2018. It includes any commenced amendment affecting the legislative instrument to that date.
This compilation was prepared by the Australian Securities and Investments Commission.
The notes at the end of this compilation (the endnotes) include information
about amending instruments and the amendment history of each amended provision.
Australian Securities and Investments Commission
Superannuation Industry (Supervision) Act 1993—Subsection 328(1)—Exemption
Enabling legislation
1. The Australian Securities and Investments Commission makes this instrument under subsection 328(1) of the Superannuation Industry (Supervision) Act 1993 (the Act).
Title
2. This instrument is ASIC Class Order [CO14/541].
Exemption
4. A RSE licensee of a registrable superannuation entity does not have to comply with subsection 29QC(1) of the Act until 1 January 2024.
Notes to ASIC Class Order [CO 14/541]
Note 1
ASIC Class Order [CO 14/541] (in force under s328(1) of the Corporations Act 2001) as shown in this compilation comprises that Class Order amended as indicated in the tables below.
Table of Instruments
Instrument number | Date of FRL registration | Date of commencement | Application, saving or transitional provisions |
[CO 14/541] | 13/6/2014 (see F2014L00705) | 13/6/2014 | |
2015/396 | 10/6/2015 (see F2015L00797) | 11/6/2015 | - |
2015/1098 | 15/12/2015 (see F2015L02012) | 16/12/2015 | - |
2016/1232 | 19/12/2016 (see F2016L01990) | 20/12/2016 | - |
2018/1080 | 17/12/2018 (see F2018L01779) | 18/12/2018 | - |
Table of Amendments
ad. = added or inserted am. = amended LA = Legislation Act 2003 rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Para 3........... | rep. s48D LA |
Para 4........... | am. 2015/396; 2015/1098; 2016/1232 and 2018/1080 |
Overview
The ASIC Class Order [CO 14/541], enacted in 2014, addresses the need for a temporary exemption for Responsible Entity Superannuation (RSE) licensees of registrable superannuation entities from certain regulatory obligations under the Superannuation Industry (Supervision) Act 1993. This exemption was introduced to provide relief to licensees while they adjust to new requirements that were set to be implemented on 1 January 2024. The Australian Securities and Investments Commission (ASIC), the enacting body, aims to facilitate a smoother transition for RSE licensees by granting this temporary exemption. The policy objective behind this class order is to ensure that the RSE licensees have adequate time to comply with the new obligations without facing undue hardship during the interim period.
Scope and Application
ASIC Class Order [CO 14/541] applies to RSE licensees of registrable superannuation entities as defined under the Superannuation Industry (Supervision) Act 1993 (the Act). The Class Order provides a temporary exemption from certain compliance requirements under the Act until 1 January 2024, specifically for subsection 29QC(1). This means that while RSE licensees are generally obligated to adhere to the provisions of the Act, they are temporarily relieved from the specific requirements outlined in subsection 29QC(1) until the specified date. The jurisdictional reach of this Class Order is effectively national as it is issued under the authority of the Commonwealth and applies across Australia. The Class Order has been amended several times since its initial enactment in 2014, with each amendment registered and commencing on specified dates, as detailed in the legislative instrument. The application and transitional provisions of these amendments are also outlined in the instrument, ensuring clarity on when and how the changes take effect.
Key Provisions
ASIC Class Order [CO 14/541] under the Superannuation Industry (Supervision) Act 1993 provides an exemption for Responsible Superannuation Entity (RSE) licensees of registrable superannuation entities from certain compliance requirements. Specifically, subsection 29QC(1) of the Act, which pertains to the governance standards for RSE licensees, is not applicable until 1 January 2024. This exemption aims to give RSE licensees additional time to adjust their operations and meet the new standards without facing immediate compliance issues.
The obligations imposed by this Class Order require RSE licensees to ensure they are aware of the exemption period and take necessary steps to prepare for compliance by the specified date. Although the compliance deadline is extended, RSE licensees must still remain vigilant about their obligations and ensure they are operating within the bounds of the Superannuation Industry (Supervision) Act 1993, with full awareness that the exemption is temporary.
In terms of consequences for non-compliance, it is crucial to note that while the specific provisions regarding penalties are not detailed in the Class Order itself, breaches of the Superannuation Industry (Supervision) Act 1993 can lead to significant civil and criminal penalties. The Act provides for hefty fines and potential imprisonment for serious breaches, reflecting the importance of maintaining high standards in the superannuation industry. The exact penalties depend on the nature and severity of the breach, but they underscore the seriousness with which the Australian Securities and Investments Commission (ASIC) views compliance with superannuation laws.
This Class Order, by extending the compliance deadline, seeks to balance the need for regulatory compliance with the practical difficulties that RSE licensees might face in meeting new standards immediately. By providing this temporary relief, ASIC aims to facilitate a smoother transition to the new governance requirements, ensuring that the superannuation industry remains robust and trustworthy for all stakeholders involved.