ASIC Corporations (Amendment) Instrument 2020/565

Overview

The ASIC Corporations (Amendment) Instrument 2020/565 was enacted to provide amendments to existing legislative instruments issued by the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001. This amendment instrument was developed to address specific issues and gaps that arose in the regulatory environment, particularly in response to the economic impacts of the COVID-19 pandemic. The instrument was authorised under various subsections of the Corporations Act, including 741(1), 926A(2), 951B(1), and 1020F(1), and was prepared by ASIC. The overarching policy objective of this legislative instrument is to ensure that ASIC can effectively regulate the corporate sector, particularly during periods of economic disruption, by providing timely and targeted relief measures. The ASIC Corporations (Amendment) Instrument 2020/565 includes amendments to the ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547, the ASIC Corporations (Trading Suspensions Relief) Instrument 2020/289, and the ASIC Corporations (COVID-19—Advice-related Relief) Instrument 2020/355. These amendments are intended to refine and improve the regulatory framework in response to the unique challenges presented by the COVID-19 pandemic. The instrument also includes provisions for the repeal of certain parts of the amended instruments after a specified period, ensuring that the relief measures are temporary and subject to review. The changes are designed to enhance ASIC's ability to provide targeted support to the corporate sector while maintaining regulatory integrity.

Scope and Application

The ASIC Corporations (Amendment) Instrument 2020/565 amends two existing legislative instruments, the ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 and the ASIC Corporations (Trading Suspensions Relief) Instrument 2020/289, both of which are subject to the Corporations Act 2001. This amendment applies to entities and persons involved in share and interest purchase plans, as well as those affected by trading suspensions, and it operates within the jurisdiction of the Commonwealth of Australia. The instrument specifies particular changes to the aforementioned instruments, such as omitting certain sections and subparagraphs, and includes provisions for the repeal of certain parts of the amended instruments after a set period. The instrument itself is made under the authority of the Corporations Act 2001 and commenced on specified dates, with one schedule coming into effect on 1 January 2021, and another on the day after its registration on the Federal Register of Legislation. It is important to note that this instrument does not introduce new legislation but rather modifies existing regulatory frameworks in response to specific circumstances, such as the COVID-19 pandemic, as evidenced by the inclusion of COVID-19 related relief measures.

Key Provisions

The ASIC Corporations (Amendment) Instrument 2020/565 (the "Instrument") amends three other legislative instruments under the Corporations Act 2001 (Cth). The primary changes are outlined in Schedules 1, 2 and 3 of the Instrument. Schedule 1 amends the ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547, specifically omitting certain provisions related to the number of days for share and interest purchase plans. Schedule 2 amends the ASIC Corporations (Trading Suspensions Relief) Instrument 2020/289, inserting a new section that repeals the Instrument six months after it commences. Schedule 3 amends the ASIC Corporations (COVID-19—Advice-related Relief) Instrument 2020/355 in a similar manner, inserting a repeal provision for six months after commencement. These amendments are intended to provide temporary relief measures in response to the COVID-19 pandemic. The entities governed by these Instruments, primarily the Australian Securities and Investments Commission (ASIC), are required to comply with the amended provisions as set out in the Instrument. ASIC must ensure that the changes are implemented in accordance with the specified commencement dates for each Schedule. The companies and other entities that fall under the purview of these Instruments must also adhere to the amended requirements, which may impact their operations and compliance obligations during the temporary relief periods. There are no explicit offences, penalties, or consequences stated in the Instrument itself for non-compliance with the amended provisions. However, non-compliance with the underlying Corporations Act 2001 may result in civil or criminal penalties, including fines and imprisonment, depending on the nature and severity of the breach. The specific penalties would be determined based on the relevant provisions of the Corporations Act and the circumstances of the case.