ASIC Class Order [CO 98/106]

Overview

The Australian Securities and Investments Commission, under the authority conferred by the Corporations Law, enacted this legislative instrument in 1998 to address specific compliance issues for certain superannuation funds and financial entities. This legislative measure was introduced to provide relief to regulated superannuation funds, approved deposit funds, and pooled superannuation trusts from certain compliance requirements under Parts 2M.2 and 2M.3 of the Corporations Law for specified financial years. The intent was to streamline and simplify regulatory burdens for these entities, allowing them to focus on their core functions without the encumbrance of extensive compliance obligations. This relief was aimed at enhancing operational efficiency within the superannuation industry, thereby better supporting the financial well-being of superannuation fund members. The Australian Securities and Investments Commission, acting on behalf of the Australian Government, implemented this order to ensure that the regulatory framework remains balanced and responsive to the needs of the financial sector.

Scope and Application

The legislative instrument F2007B01016 issued by the Australian Securities and Investments Commission under subsections 111AT(1) and 341(1) of the Corporations Law pertains to the relief of certain entities from specific compliance requirements. Specifically, the order exempts regulated superannuation funds, approved deposit funds, and pooled superannuation trusts as defined under the Superannuation Industry (Supervision) Act 1993 from complying with Parts 2M.2 and 2M.3 of the Corporations Law for a financial year or half-year. These exemptions are applicable across the Commonwealth of Australia, and the relief extends to entities governed by the Superannuation Industry (Supervision) Act 1993. Additionally, the instrument revokes Exemption Number 94/1859 dated 13 December 1994, effective for financial years ending after 7 July 1998 for entities applying the relief provided by Class Order 98/0095 dated 10 July 1998, and for all other cases, the revocation is effective for financial years ending after 30 June 1998. This legislative instrument highlights the Commission's role in managing and updating regulatory requirements to ensure they remain relevant and effective for the entities they govern.

Key Provisions

The primary operative sections of this legislative instrument, specifically subsections 111AT(1) and 341(1) of the Corporations Law, provide the Australian Securities and Investments Commission (ASIC) with the authority to issue an order and revoke an exemption. According to subsection 341(1), ASIC has made an order (paragraph 1) relieving certain types of disclosing entities, namely regulated superannuation funds, approved deposit funds, and pooled superannuation trusts, from compliance with Parts 2M.2 and 2M.3 of the Law concerning a financial year or half-year. These entities are defined under the Superannuation Industry (Supervision) Act 1993 (Cth). On the other hand, subsection 111AT(1) authorises ASIC to revoke Exemption Number 94/1859 dated 13 December 1994, with the revocation taking effect from financial years ending after 7 July 1998 for entities applying the relief provided by Class Order 98/0095 dated 10 July 1998, and financial years ending after 30 June 1998 for all other cases. This legislation imposes certain obligations and requirements on the parties it governs. Specifically, regulated superannuation funds, approved deposit funds, and pooled superannuation trusts are relieved from compliance with Parts 2M.2 and 2M.3 of the Corporations Law for a financial year or half-year. This relief is conditional on these entities falling under the definition provided in the Superannuation Industry (Supervision) Act 1993 (Cth). Furthermore, the revocation of Exemption Number 94/1859 means that these entities must no longer rely on the exemption that was previously in place. This change necessitates that these entities adapt to the new regulatory requirements as outlined in the Corporations Law. The legislative instrument also outlines potential consequences for breach. Although the specific offences, penalties, or consequences are not detailed in the text, it is common under Australian law for breaches of legislative requirements to result in civil or criminal penalties. The maximum penalties can vary significantly depending on the nature and severity of the breach. Civil penalties could include fines, while criminal penalties might include imprisonment, depending on the jurisdiction and specific provisions of the law under which the breach occurred. Given that this instrument is related to the Corporations Law, penalties could potentially include substantial fines for corporations and, in severe cases, imprisonment for individuals responsible for the breach.