EXPLANATORY STATEMENT
ASIC Corporations (Amendment) Instrument 2017/386
Prepared by the Australian Securities and Investments Commission
Corporations Act 2001
The Australian Securities and Investments Commission (ASIC) makes ASIC Corporations (Amendment) Instrument 2017/386 (legislative instrument) under paragraph 1020F(1)(c) of the Corporations Act 2001 (Act). Paragraph 1020F(1)(c) provides that ASIC may declare that Part 7.9 of the Act applies in relation to a person or a financial product, or a class of persons or financial products, as if specified provisions were omitted, modified or varied as specified in the declaration.
Under subsection 33(3) of the Acts Interpretations Act 1901 (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.
- Background
The Corporations Amendment Regulations 2010 (No 5) established a new shorter Product Disclosure Statement (PDS) regime under Subdivision 4.2B (for superannuation products) and Subdivision 4.2C (for simple managed investment schemes) of Division 4 of Part 7.9 of the Corporations Regulations 2001. The shorter PDS regime fully commenced on 22 June 2012.
ASIC Class Order [CO 12/749] (principal class order) provides interim relief, until 30 June 2017, excluding multifunds, superannuation platforms and hedge funds from the shorter PDS regime.
2. Purpose of the instrument
The legislative instrument extends the relief given by Class Order [CO 12/749] until 30 June 2018, to enable ASIC to consult on permanent relief for the application of the shorter PDS regime to superannuation platforms, multi-funds and hedge funds.
3. Operation of the instrument
The legislative instrument amends paragraph 6 of the principal class order to extend the operation of the principal class order from 30 June 2017 to 30 June 2018.
4. Consultation
ASIC did not undertake a formal consultation process on extending the operation of the principal class order as the extension is a transitional measure of a minor and machinery nature, and was requested by industry and Treasury.