ASIC Corporations (Amendment and Repeal) Instrument 2016/182

Administered by Department of the Treasury

Legislation au F2016L00453 Not in force Legislative Instrument

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EXPLANATORY STATEMENT for
ASIC Corporations (Amendment and Repeal) Instrument 2016/182

Prepared by the Australian Securities and Investments Commission

Corporations Act 2001

The Australian Securities and Investments Commission (ASIC) makes ASIC Corporations (Amendment and Repeal) Instrument 2016/182 under subsections 111AT(1), 341(1), 352(1), 741(1) and 1020F(1) and paragraph 911A(2)(l) of the Corporations Act 2001 (the Corporations Act).

Subsection 111AT(1) provides that ASIC may, by writing, exempt specified persons from all or specified disclosing entity provisions either generally or as otherwise specified and either unconditionally or subject to specified conditions.

Subsection 341(1) provides that ASIC may make an order in writing in respect of a specified class of companies, registered schemes or disclosing entities, relieving any of the directors, the companies, registered schemes or disclosing entities themselves, or the auditors of the companies, registered schemes or disclosing entities from all or specified requirements of Parts 2M.2, 2M.3 and 2M.4 (other than Division 4) of the Corporations Act.

Subsection 352(1) provides that a document may be lodged with ASIC electronically only if ASIC and the person seeking to lodge it (either on their own behalf or as agent) have agreed, in writing, that it may be lodged electronically or ASIC has approved, in writing, the electronic lodgement of documents of that kind.

Subsection 741(1) provides that ASIC may exempt a person from a provision of Chapter 6D of the Corporations Act or declare that Chapter 6D applies to a person as if specified provisions were omitted, modified or varied as specified in the declaration.

Subsection 1020F(1) provides that ASIC may exempt a person or a financial product or class of financial products from all or specified provisions of Part 7.9 of the Corporations Act or declare that Part 7.9 applies to a person, financial product or class of financial products as if specified provisions were omitted, modified or varied as specified in the declaration.

Paragraph 911A(2)(l) provides that a person is exempt from the requirement to hold an Australian financial services licence for a financial service they provide if the provision of the service is covered by an exemption specified by ASIC in writing and published in the Gazette.

Under subsection 33(3) of the Acts Interpretation Act 1901 (as in force as at 1 January 2005 and as applicable to the relevant powers because of section 5C of the Act), where an Act confers a power to make, grant or issue any instrument (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

ASIC Corporations (Amendment and Repeal) Instrument 2016/182:

(a) repeals Class Order [CO 98/100] Rounding in financial reports and directors’ reports, Class Order [CO 98/104] Dual lodgement relief for NSX-listed disclosing entities, Class Order [CO 00/2451] Electronic lodgement of certain reports with the ASX approval, Class Order [CO 03/823] Relief from licensing, accounting and audit requirements for foreign authorised deposit-taking institutions, Class Order [CO 06/6] Electronic lodgement relief for ASX-listed entities and Class Order [06/68] Conditional relief for foreign licensees from financial reporting and record keeping obligations; and

(b) makes consequential amendments to ASIC Corporations (Disregarding Technical Relief) Instrument 2016/73 and Class Order [CO 09/425] Share and interest purchase plans.

Background

Under the Legislation Act 2003, legislative instruments cease automatically, or ʻsunsetʼ, after 10 years, unless action is taken to exempt or preserve them.

To preserve its effect, a legislative instrument, such as a class order, must be remade before the sunset date. The purpose of sunsetting is to ensure that instruments are kept up to date and only remain in force while they are fit for purpose, necessary and relevant.

[CO 98/100], [CO 06/6] and [CO 06/68] are due to sunset on 1 April 2016, [CO 98/104] is due to sunset on 1 October 2016 and [CO 00/2451] and [CO 03/823] are due to sunset on 1 April 2017. ASIC has reviewed its policy underlying the relief. In light of this review and following public consultation, ASIC considers that the class order relief is necessary, fit-for-purpose and relevant.

As such, ASIC has decided to:

(a) reissue the relief underlying [CO 98/100] in a new legislative instrument, ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191;

(b) reissue the relief underlying [CO 06/6], [CO 98/104] and [CO 00/2451] in a new legislative instrument, ASIC Corporations (Electronic Lodgement of Financial Reports) Instrument 2016/181; and

(c) reissue the relief underlying [CO 03/823] and [CO 06/68] in a new legislative instrument, ASIC Corporations (Foreign Licensees and ADIs) Instrument 2016/186.

2. Purpose of the instrument

In light of the relief in [CO 98/100], [CO 98/104], [CO 00/2451], [CO 03/823], [CO 06/6] and [CO 06/68] being remade in new legislative instruments, the purpose of ASIC Corporations (Amendment and Repeal) Instrument 2016/182 is to repeal [CO 98/100], [CO 98/104], [CO 00/2451], [CO 03/823], [CO 06/6] and [CO 06/68] and to make consequential amendments to ASIC Corporations (Disregarding Technical Relief) Instrument 2016/73 and [CO 09/425].

3. Operation of the instrument

ASIC Corporations (Amendment and Repeal) Instrument 2016/182 repeals [CO 98/100], [CO 98/104], [CO 00/2451], [CO 03/823], [CO 06/6] and [CO 06/68] and makes consequential amendments to ASIC Corporations (Disregarding Technical Relief) Instrument 2016/73 and [CO 09/425].

4. Consultation

ASIC has not consulted on this instrument as it is machinery in nature.

Overview

The ASIC Corporations (Amendment and Repeal) Instrument 2016/182 was enacted by the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001 to address the sunsetting of several class orders that were due to expire between April 2016 and April 2017. This instrument repealed Class Orders [CO 98/100], [CO 98/104], [CO 00/2451], [CO 03/823], [CO 06/6], and [CO 06/68], which provided rounding relief in financial reports, dual lodgement relief for certain entities, and various reliefs for electronic lodgement, licensing, accounting and audit requirements for foreign authorised deposit-taking institutions, and conditional relief for foreign licensees from financial reporting and record-keeping obligations. The purpose of this instrument was to ensure that the reliefs remain in force as they were found to be necessary, fit-for-purpose, and relevant following a review and public consultation by ASIC. As part of this process, the reliefs were reissued in new legislative instruments. This instrument also made consequential amendments to other ASIC instruments to reflect the repeal of the aforementioned class orders.

Scope and Application

The ASIC Corporations (Amendment and Repeal) Instrument 2016/182 operates under the authority of the Corporations Act 2001 and is made by the Australian Securities and Investments Commission (ASIC) under specific subsections and paragraphs within the Act. The instrument applies to a broad range of entities, including companies, registered schemes, disclosing entities, directors, auditors, and potentially other persons or financial products as defined under the Corporations Act. It primarily concerns the repeal of existing class orders related to financial reporting, electronic lodgement of documents, and relief from licensing and reporting requirements for foreign authorised deposit-taking institutions and foreign licensees. The geographic reach of this instrument is national, as it operates under Commonwealth law. Notably, the instrument does not specify any exclusions, exemptions, or thresholds but operates through the repeal of existing class orders, which were previously designed to provide relief to certain entities. The instrument also extends its application through the issuance of new legislative instruments that reissue the relief provided by the repealed class orders, thereby ensuring continuity in regulatory relief while allowing for updates and refinements in the legal framework.

Key Provisions

The ASIC Corporations (Amendment and Repeal) Instrument 2016/182 primarily operates to repeal existing class orders and make consequential amendments to other related instruments, as stipulated in sections 111AT, 341, 352, 741, 1020F, and 911A of the Corporations Act 2001. This instrument repeals Class Order [CO 98/100] concerning rounding in financial reports and directors’ reports, Class Order [CO 98/104] on dual lodgement relief for NSX-listed disclosing entities, Class Order [CO 00/2451] on the electronic lodgement of certain reports with the ASX approval, Class Order [CO 03/823] which provides relief from licensing, accounting, and audit requirements for foreign authorised deposit-taking institutions, Class Order [CO 06/6] on electronic lodgement relief for ASX-listed entities, and Class Order [CO 06/68] which provides conditional relief for foreign licensees from financial reporting and record-keeping obligations. The instrument also makes consequential amendments to ASIC Corporations (Disregarding Technical Relief) Instrument 2016/73 and Class Order [CO 09/425] Share and Interest Purchase Plans. This instrument imposes specific obligations on entities that were previously subject to the repealed class orders. For example, entities previously benefiting from rounding relief for financial reports and directors’ reports, electronic lodgement relief, and relief from certain licensing and audit requirements will need to comply with the new legislative instruments that have been issued to replace these class orders. This includes adhering to the new provisions in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, ASIC Corporations (Electronic Lodgement of Financial Reports) Instrument 2016/181, and ASIC Corporations (Foreign Licensees and ADIs) Instrument 2016/186. Failure to comply with the requirements outlined in the repealed class orders and the new legislative instruments could result in significant legal consequences. The penalties for non-compliance may include substantial fines and, in some cases, criminal charges. The specific penalties will depend on the nature and severity of the breach, and the relevant sections of the Corporations Act 2001 and other applicable laws. For example, non-compliance with financial reporting obligations could result in fines of up to $210,000 for individuals and significantly higher fines for corporations, as well as potential criminal charges. Additionally, failure to comply with electronic lodgement requirements could result in administrative penalties, including fines and other sanctions. This instrument also addresses the sunsetting of legislative instruments under the Legislation Act 2003, ensuring that instruments remain up-to-date and relevant. Given that the repealed class orders were due to sunset between April 2016 and April 2017, ASIC's review and decision to reissue the relief in new legislative instruments are crucial to maintaining the regulatory framework.

Area of Law: Corporate Law & Governance
Instrument: Legislative Instrument
Concepts: Definitions & Interpretation; Repeal & Amendment; Regulatory Standards

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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