ASIC Class Order [CO 14/55]

Overview

The ASIC Class Order [CO 14/55], made under the Corporations Act 2001 by the Australian Securities and Investments Commission (ASIC), was enacted to address the need for clarifying and extending the scope of the First Exemption set out in ASIC Class Order [CO 13/1534]. This was in response to the changes in disclosure requirements for fees and costs information in Product Disclosure Statements and periodic statements for superannuation products introduced by the Superannuation Legislation Amendment (MySuper Measures) Regulation 2013. The class order ensures that the exemption applies to all relevant types of registrable superannuation entities, including trustees of approved deposit funds and pooled superannuation trusts, thereby extending the compliance date from 31 December 2013 to 1 July 2014 for these entities. ASIC asserts that this class order is compatible with human rights as it does not engage any of the applicable rights or freedoms.

Scope and Application

ASIC Class Order [CO 14/55], made under the Corporations Act 2001, extends the compliance period for trustees of approved deposit funds and pooled superannuation trusts in relation to the disclosure of fees and costs information. This order applies to trustees of regulated superannuation funds, approved deposit funds, and pooled superannuation trusts, which are entities involved in the management of superannuation products. The class order was introduced in response to changes in disclosure requirements under the Superannuation Legislation Amendment (MySuper Measures) Regulation 2013, which originally mandated compliance by 31 December 2013. The order extends this compliance period to 1 July 2014 for Product Disclosure Statements and periodic statements. It is applicable across Australia and does not contain any exclusions or exemptions other than the specified extensions for the mentioned entities. The order's operation is clarified through subordinate instruments without additional exemptions or thresholds.

Key Provisions

The ASIC Class Order [CO 14/55], under section 1020F(1) of the Corporations Act 2001, provides an exemption for certain trustees of regulated superannuation funds from the disclosure requirements concerning fees and costs in Product Disclosure Statements and periodic statements. The order extends the compliance date for trustees of regulated superannuation funds (excluding self-managed superannuation funds) to 1 July 2014 for Product Disclosure Statements issued after that date, and for periodic statements from reporting periods starting on or after 1 July 2014. This order aims to ensure that the First Exemption, as outlined in CO 13/1534, applies to trustees of approved deposit funds and pooled superannuation trusts, thereby broadening the scope of the exemption. The obligations imposed by this class order include ensuring that trustees of regulated superannuation funds, approved deposit funds, and pooled superannuation trusts comply with the extended deadline for disclosing fees and costs information in Product Disclosure Statements and periodic statements. Trustees must ensure that these documents meet the disclosure requirements by 1 July 2014, providing a clear extension from the initial compliance date of 31 December 2013. The class order maintains the same duration for the exemption but broadens the scope to include the aforementioned types of superannuation entities. Breaches of the requirements set out in this class order could lead to enforcement actions by ASIC. Although specific penalties are not detailed in the explanatory statement, non-compliance with ASIC class orders generally could result in significant administrative penalties, legal action, and reputational damage. The severity of consequences can vary based on the nature and extent of the breach, with potential penalties including fines and other corrective measures to ensure compliance with the Act.