ASIC CLASS ORDER [CO 15/153]
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 15/153] under paragraphs 601QA(1)(a), 601QA(1)(b), 926A(2)(a), 992B(1)(a), 1020F(1)(a) and 1020F(1)(c) of the Corporations Act 2001 (the Act).
Paragraph 601QA(1)(a) of the Act provides that ASIC may exempt a person from all or specified provisions of Chapter 5C of the Act.
Paragraph 601QA(1)(b) of the Act provides that ASIC may declare that Chapter 5C of the Act applies to a person as if specified provisions were omitted, modified or varied as specified in the declaration.
Paragraph 926A(2)(a) of the Act provides that ASIC may exempt a person or a class of persons from all or specified provisions of Part 7.6 of the Act other than Divisions 4 and 8.
Paragraph 992B(1)(a) of the Act provides that ASIC may exempt a person or a class of persons from all or specified provisions of Part 7.8 of the Act.
Paragraph 1020F(1)(a) provides that ASIC may exempt a person or class of persons from all or specified provisions of Part 7.9 of the Act.
Paragraph 1020F(1)(c) 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.
Class Order [CO 15/153] revokes ASIC Class Order [CO 15/52].
1. Background
ASIC Class Order [CO 15/52] puts in place a framework for providing relief from certain Australian financial services (AFS) licensing, scheme registration, product disclosure, advertising and anti-hawking requirements in Chapters 5C and 7 of the Act to promoters and managers of small scale greyhound racing and breeding schemes (greyhound schemes).
The relief may be relied on once co-regulatory arrangement between ASIC and various state and territory based controlling bodies for the regulation of greyhound schemes within each respective jurisdiction have been put in place (controlling bodies). There are presently no arrangements of this kind; and accordingly no relief is in effect under ASIC Class Order [CO 15/52].
2. Purpose of the class order
The purpose of Class Order [CO 15/153] is to revoke Class Order [CO 15/52]. ASIC has determined not to proceed at this time with the regulatory framework envisaged by Class Order [15/52] and will instead undertake further consultation concerning whether it is appropriate to provide the relief envisaged by Class Order [15/52].
ASIC is undertaking further consultation because the relief envisaged under Class Order CO [15/52] was based on a co-regulation arrangement between ASIC and the controlling bodies. Information has come to our attention that places in question the resourcing and organisational capacity of some controlling bodies and consequently their fitness to perform the role required under the regulatory framework established under Class Order [CO 15/52]. ASIC will take into account any further developments concerning the greyhound racing controlling bodies which are relevant in this regard.
3. Operation of the class order
Class Order [CO 15/153] revokes Class Order [CO 15/52] and operates from the day after it is registered under the Legislative Instruments Act 2003.
4. Consultation
The relevant industry body, Greyhounds Australasia, was informed that ASIC intended to revoke Class Order [CO 15/52] and made representations in response. ASIC does not consider that wider consultation was appropriate in the circumstances.
ASIC had previously consulted more generally on other aspects of the relief envisaged under Class Order [CO 15/52] in Consultation Paper 213 Greyhound racing and breeding syndicate schemes.
As no relief is presently available under Class Order [CO 15/52] ASIC considers that Class Order [CO 15/153] will have a minor impact and therefore no Regulation Impact Statement is required.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
ASIC Class Order [CO 15/153]
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 the legislative instrument
The purpose of this legislative instrument is to revoke ASIC Class Order 15/52, which provided relief from certain Australian financial services (AFS) licensing, scheme registration, product disclosure, advertising and anti-hawking requirements in Chapters 5C and 7 of the Act to promoters and managers of small scale greyhound racing and breeding schemes (greyhound schemes).
Human rights implications
This legislative instrument does not engage any of the applicable rights or freedoms, as it restores the legislative framework that applied to the regulation of greyhound schemes before the execution of Class Order [CO 15/52].
Conclusion
This legislative instrument is compatible with human rights as it does not raise any human rights issues.