ASIC Class Order [CO 99/1010]

Overview

The Australian Securities and Investments Commission (ASIC) Class Order [98/59] was varied in 1999 to amend the reference within the Corporations Law to ensure alignment with the updated legislative framework. Enacted in 1999, this legislative instrument aimed to address the need for regulatory adjustments in light of the evolving corporate governance and financial reporting standards in Australia. The variation was introduced to correct a discrepancy in the referencing of Division 11 within the Corporations Law, ensuring that the regulatory provisions remained accurate and effective. This change was enacted by Brendan Byrne, as a delegate of the Australian Securities and Investments Commission, in accordance with the authority granted under paragraph 601QA(1)(b) of the Corporations Law. The policy objective was to maintain the integrity and efficacy of the regulatory requirements governing corporate activities in Australia.

Scope and Application

The Australian Securities and Investments Commission Corporations Law, specifically under paragraph 601QA(1)(b), pertains to the regulation and administration of financial markets and entities within Australia. This legislation applies to a broad range of entities, including corporations, financial institutions, and other organisations that are involved in the securities and financial services sectors. It governs the conduct of these entities, ensuring compliance with national standards and protecting the interests of investors and consumers. The geographic reach of this legislation is national, as it operates under the Commonwealth framework, thereby affecting all states and territories of Australia. However, the Act does not explicitly state any exclusions or exemptions, and its application can be further refined through subordinate instruments, which may include regulations or further class orders that specify particular conditions or exceptions. This legislative instrument, dated 8th July 1999, adjusts the ASIC Class Order [98/59] to align with changes in the legislative framework, reflecting updates to the Corporations Law and ensuring that the regulatory requirements remain current and effective.

Key Provisions

The legislative instrument in question is a variation to an existing ASIC Class Order, specifically ASIC Class Order [98/59]. This variation replaces "Division 11 of Part 9.11" with "Division 11 (second appearing) of Part 11.2" under paragraph 601QA(1)(b) of the Corporations Law (section 601QA(1)(b)). This alteration is intended to ensure that the relevant sections of the Corporations Law are correctly referenced, maintaining consistency and clarity in the regulatory framework. Under the varied ASIC Class Order, there are specific obligations and requirements imposed on the entities it governs. These obligations revolve around the correct referencing of legal provisions to ensure that all parties are aware of and comply with the relevant sections of the Corporations Law. The variation itself does not introduce new obligations but rather ensures that existing ones are accurately reflected. This includes ensuring that all references to regulatory sections are precise, thereby avoiding any ambiguity or misinterpretation that could lead to non-compliance. Failure to adhere to the requirements set out in the varied ASIC Class Order could result in various consequences. While the legislative instrument does not explicitly state penalties for non-compliance, breaches of the Corporations Law can lead to both civil and criminal penalties. Civil penalties can include substantial fines, and in severe cases, criminal penalties such as imprisonment may be imposed. The exact penalties depend on the nature and severity of the breach, as well as any relevant jurisdictional provisions. It is essential for entities governed by this order to ensure strict compliance to avoid these potential repercussions. Overall, this legislative instrument serves to clarify and correct the referencing within the ASIC Class Order, thereby maintaining the integrity and enforceability of the Corporations Law. Entities subject to this regulation must ensure they are familiar with the updated sections to avoid any inadvertent breaches. The variation underscores the importance of accurate legal referencing in regulatory documents and highlights the potential consequences of non-compliance.