ASIC Corporations (Amendment) Instrument 2018/549

Overview

The ASIC Corporations (Amendment) Instrument 2018/549 was enacted by the Australian Securities and Investments Commission (ASIC) under subsection 1020F(1) of the Corporations Act 2001. This instrument was introduced to address and correct typographical errors in the legislative references within the ASIC Corporations (AFCA transition) Instrument 2018/447, which provided transitional relief for financial firms in the context of the establishment of the Australian Financial Complaints Authority (AFCA). The primary purpose of this amendment was to ensure that the legislative references in the primary instrument accurately reflect the provisions of the Corporations Act from which relief is provided. The instrument operates by amending sections 6 and 7 of the primary instrument to correct these references, thereby maintaining the integrity and effectiveness of the regulatory framework as financial firms transition to the new AFCA regime. Given the purely technical nature of the amendments, no consultation was undertaken. Moreover, the instrument has been assessed for compatibility with human rights under the Human Rights (Parliamentary Scrutiny) Act 2011, and it has been concluded that the instrument does not engage any of the applicable rights or freedoms, thus affirming its compatibility with human rights.

Scope and Application

The ASIC Corporations (Amendment) Instrument 2018/549, made under the Corporations Act 2001, serves to correct typographical errors in the ASIC Corporations (AFCA transition) Instrument 2018/447, which provided transitional relief for firms in light of the establishment of the Australian Financial Complaints Authority (AFCA). This legislative instrument applies to financial firms that are subject to the Corporations Act, specifically those dealing with financial products covered by section 1017B, as they transition to AFCA. The instrument’s jurisdiction is Commonwealth-wide, aligning with the national scope of the Corporations Act. While the primary instrument granted relief from certain compliance requirements until 1 July 2019, the amendment ensures that these provisions accurately reference the relevant sections of the Corporations Act. The instrument does not introduce new substantive changes or exemptions but rather corrects prior errors to ensure the smooth transition to the AFCA regime.

Key Provisions

The main operative sections of ASIC Corporations (Amendment) Instrument 2018/549 pertain to the corrections of legislative references in the ASIC Corporations (AFCA transition) Instrument 2018/447. Specifically, sections 6 and 7 of the primary instrument have been amended to accurately refer to the relevant provisions of the Corporations Act 2001 (section 2). This amendment ensures that firms receive the appropriate transitional relief regarding the update of disclosure documents and periodic statements with the Australian Financial Complaints Authority's (AFCA) contact details until 1 July 2019, as well as relief from significant event notification requirements (section 3). The purpose of this instrument is solely to rectify typographical errors in the legislative references within the primary instrument, thereby ensuring compliance and proper application of the law (section 2). The obligations and requirements imposed by the ASIC Corporations (Amendment) Instrument 2018/549 primarily revolve around the correction of legislative references to maintain the integrity and accuracy of the law. Firms subject to the Corporations Act 2001 must ensure that their disclosure documents and periodic statements are updated with AFCA's contact details by 1 July 2019, as stipulated in section 6 of the primary instrument. Additionally, issuers of financial products captured by section 1017B of the Corporations Act are relieved from significant event notification requirements relating to the transition to AFCA (section 7 of the primary instrument). These obligations are critical to facilitate a smooth transition to the new external dispute resolution scheme under the Australian Financial Complaints Authority (section 1). The ASIC Corporations (Amendment) Instrument 2018/549 does not introduce new offences or penalties; instead, it corrects existing typographical errors in legislative references. Any breaches of the requirements to update disclosure documents with AFCA’s contact details or non-compliance with the relief from significant event notification requirements would fall under the original provisions of the Corporations Act 2001. Such breaches may result in civil or criminal penalties, including fines and imprisonment, depending on the severity of the offence (sections 1311 and 1317 of the Corporations Act 2001). The maximum penalties for breaches involving dishonesty or breaches of continuous disclosure requirements can be substantial, reflecting the seriousness of non-compliance with corporate law.