ASIC Class Order [CO 99/837]

Overview

The Australian Securities and Investments Commission Class Order 99/0837, enacted in 1999, amends Class Order 98/0104 to address specific issues in the application of financial reporting requirements under the Corporations Law. The primary objective of this legislative instrument is to ensure that financial reporting obligations are appropriately aligned with the evolving regulatory landscape and to exclude certain entities from the purview of these obligations where it is deemed unnecessary or inappropriate. This amendment is enacted by the Australian Securities and Investments Commission, which acts as a delegate of the Australian Government in matters pertaining to corporate law and financial regulation. The policy objective behind this variation is to refine the application of financial reporting requirements, ensuring they are precise and relevant to the entities they are intended to regulate, thereby promoting clarity and efficiency in compliance.

Scope and Application

The legislative instrument F2006B00827, an amendment to Class Order 98/0104, pertains to the Australian Securities and Investments Commission (ASIC) and its regulation under the Corporations Law. This amendment applies to the full-year financial reports of entities subject to the Corporations Law, excluding those of certain companies and registered schemes, as well as other disclosing entities that do not fall under these categories. The changes involve modifying specific references within the Class Order and inserting a new exclusion for the full-year financial reports of specific entities. This amendment serves to refine the scope and application of the Class Order, impacting how certain entities must report their financial information. The Class Order applies across the Commonwealth of Australia, ensuring a standardised approach to financial reporting requirements within the corporate sector. The exclusions are aimed at tailoring the regulatory requirements to fit the specific circumstances of different types of entities, thus allowing for a more nuanced application of financial reporting obligations.

Key Provisions

This legislative instrument primarily concerns the Australian Securities and Investments Commission's (ASIC) amendment to a Class Order under the Corporations Law (subsection 341(1)). The Class Order, originally numbered 98/0104 and dated 10 July 1998, has been modified by deleting certain words, replacing others, and adding a new provision. Specifically, section (a) removes the words "which is not an undertaking", altering the scope of the order. Section (b) replaces "1.07B and 1.07A" with "1.0.08 and 1.0.09", likely referencing particular sections within the Class Order to be updated. Section (c) introduces a new clause stating that the order does not apply to the full year financial reports of certain entities, namely those that are undertakings as defined in Division 5 of Part 7.12 of the Corporations Law, and other disclosing entities that are neither companies nor registered schemes. The amended Class Order imposes specific obligations on entities that are subject to its provisions. These entities are now required to adhere to the updated rules and references, which may affect their financial reporting and disclosure requirements. The deletion of "which is not an undertaking" broadens the scope of entities that must comply with the order, while the replacement of section references likely updates the legal framework they must follow. Additionally, by excluding certain entities from the order's application, the amendment tailors the requirements to more precisely target the entities intended to be governed. Breaches of the provisions outlined in the amended Class Order can lead to various consequences. While the specific penalties are not detailed in the text, under the Corporations Law, breaches can result in both civil and criminal penalties. Civil penalties may include fines, while criminal penalties can include imprisonment, depending on the severity of the breach and the specific provisions violated. The maximum penalties would be in line with the broader legal framework provided by the Corporations Law, which can impose significant fines and custodial sentences for serious offences.