ASIC Class Order [CO 98/104]

Overview

ASIC Class Order [CO 98/104], which came into effect under the Corporations Act 2001, aims to provide relief to listed disclosing entities by exempting them from certain lodgment requirements with the Australian Securities and Investments Commission (ASIC). Specifically, it allows these entities to avoid lodging certain forms and reports with ASIC if they have already provided the Australian Stock Exchange Limited with the necessary reports within the specified timeframes, and if no fee is payable under the Corporations (Fees) Regulations for lodgment with ASIC. This order was designed to streamline the reporting process for listed entities, thereby reducing administrative burdens. It was enacted by ASIC under the authority conferred by subsections 111AT(1) and 341(1) of the Corporations Act 2001, with the policy objective of facilitating compliance while ensuring that essential financial information is still available to the public.

Scope and Application

ASIC Class Order [CO 98/104] provides relief to listed disclosing entities under the Corporations Act 2001, allowing them to avoid lodging specific forms and documents with the Australian Securities and Investments Commission (ASIC) if they comply with certain conditions. Specifically, a listed disclosing entity can be exempt from lodging Forms 388 and 1001/7051 together with the related reports with ASIC if it delivers the reports to the Australian Stock Exchange Limited within the stipulated times and no fee is payable for ASIC lodgment. However, this exemption does not extend to full-year financial reports of entities that fall under Division 5 of Part 7.12 of the Corporations Law, nor to disclosing entities that are not companies or registered schemes. The order applies nationally and is effective for financial years ending after specific dates, with some provisions differing based on the application of other related orders. The Class Order also includes amendments and revocations of previous orders, reflecting ongoing adjustments to regulatory requirements.

Key Provisions

The ASIC Class Order [CO 98/104], which is in force under subsections 111AT(1) and 341(1) of the Corporations Act 2001, provides relief for listed disclosing entities from certain lodgment requirements with ASIC. Specifically, section 2 of the order exempts the entity from lodging Forms 388 and 1001/7051 together with the related reports with ASIC if the entity has already provided the same reports to the Australian Stock Exchange Limited within the stipulated timeframes, and no fee is payable under the Corporations (Fees) Regulations for lodgment with ASIC. This dual lodgment relief applies to financial years or half-years, except for full-year financial reports of certain undertakings or other disclosing entities that are not companies or registered schemes. Under this Class Order, the primary obligations on the disclosing entities include the timely submission of all required reports to the Australian Stock Exchange Limited and ensuring no fees are payable for the ASIC lodgment, if applicable. These entities must strictly adhere to the deadlines specified in sections 319 and 320 of the Corporations Act 2001 for lodging reports with the Australian Stock Exchange. Failure to comply with the provisions of this Class Order may result in regulatory repercussions. Although the Class Order itself does not specify penalties, breaches of the underlying Corporations Act 2001 or associated regulations can lead to enforcement actions by ASIC. These actions may include administrative penalties, legal proceedings, and potential fines. The specific penalties depend on the nature and severity of the breach but can be substantial under the Corporations Act.