ASIC Corporations (Repeal and Transitional) Instrument 2016/396
About this compilation
Compilation No. 7
This is a compilation of ASIC Corporations (Repeal and Transitional) Instrument 2016/396 as in force on 6 August 2024. It includes any commenced amendment affecting the legislative instrument to that date.
This compilation was prepared by the Australian Securities and Investments Commission.
The notes at the end of this compilation (the endnotes) include information
about amending instruments and the amendment history of each amended provision.
Contents
Part 1—Preliminary
1 Name of legislative instrument
3 Authority
4 Schedules
Schedule 2—Savings
Transitional continuation of relief given by repealed ASIC Class Orders
Endnotes
Endnote 1—Instrument history
Endnote 2—Amendment history
Part 1—Preliminary
1 Name of legislative instrument
This is the ASIC Corporations (Repeal and Transitional) Instrument 2016/396.
3 Authority
This instrument is made under paragraph 911A(2)(l) of the Corporations Act 2001.
4 Schedules
Each instrument that is specified in a Schedule to this instrument is repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its term
Schedule 2—Savings
Transitional continuation of relief given by repealed ASIC Class Orders
1 Transitional licensing relief
(1) An exemption specified in an ASIC Class Order specified in Schedule 1 as in force immediately before its repeal, continues to apply by force of this item, in the circumstances and on the conditions specified in relation to the exemption, provided that a circumstance or condition that requires a person to have provided ASIC with evidence of a matter that ASIC has stated in writing is adequate is taken to be satisfied if the person has provided ASIC with evidence of that matter.
Note: See paragraph 2(a) of Schedule B to each of ASIC Class Orders [CO 03/1100], [CO 03/1101], [CO 03/1103], [CO 04/829] and [CO 04/1313] and subparagraph 2(a)(ii) of Schedule B to ASIC Class Order [CO 03/1102].
(2) An exemption that continues to apply by force of subitem (1) applies provided any person relying on the exemption
(a) complies with any written notice given by ASIC directing the person to give to ASIC, within the time specified in the notice, a written statement containing specified information about the financial service business operated by the person in this jurisdiction; and
(b) if the person is relying on the exemption on or after 1 April 2020—was able to rely on the exemption on 31 March 2020.
(3) Subitems (1) and (2) have effect for the period commencing on the day this instrument commences and ending on 31 March 2026.
Endnotes
Endnote 1—Instrument history
Instrument number | Date of FRL registration | Date of commencement | Application, saving or transitional provisions |
2016/396 | 27/9/2016 (see F2016L01497) | 28/9/2016 | |
2018/807 | 24/9/2018 (see F2018L01336) | 25/9/2018 | - |
2019/902 | 5/9/2019 (see F2019L01144) | 10/9/2019 | - |
2020/200 | 10/3/2020 (see F2020L00239) | 17/3/2020 | - |
2021/510 | 11/6/2021 (see F2021L00732) | 15/6/2021 | - |
2022/623 | 29/07/2022 (see F2022L01022) | 2/8/2022 | - |
2023/588 | 7/8/2023 (see F2023L01065) | 15/8/2023 | - |
2024/497 | 31/7/2024 (see F2024L00941) | 6/8/2024 | - |
Endnote 2—Amendment history
ad. = added or inserted am. = amended LA = Legislation Act 2003 rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Section 2 | rep. s48D LA |
Schedule 1 | rep. s48C LA |
Subitem 1(1) of Schedule 2 |
am. 2020/200
|
Subitem 1(2) of Schedule 2 |
am. 2020/200
|
Subitem 1(3) of Schedule 2 |
am. 2018/807; 2019/902; 2020/200; 2021/510; 2022/623; 2023/588 and 2024/497
|
Overview
The ASIC Corporations (Repeal and Transitional) Instrument 2016/396 was enacted to address the need for transitional arrangements following the repeal of certain Australian Securities and Investments Commission (ASIC) Class Orders. This instrument was created under the authority of the Corporations Act 2001 and was designed to ensure a smooth transition by providing continued application of reliefs and exemptions that were previously granted by the repealed Class Orders. The policy objective behind this instrument is to maintain regulatory stability and certainty for entities affected by the repeal of these orders, allowing them adequate time to adjust to the new legal framework without facing immediate compliance challenges. The instrument was enacted by the Australian Securities and Investments Commission, reflecting a coordinated effort to streamline and modernise regulatory requirements in the corporate sector.
Scope and Application
The ASIC Corporations (Repeal and Transitional) Instrument 2016/396 applies to the repealed ASIC Class Orders specified in Schedule 1, continuing certain exemptions granted by those orders for a transitional period. This legislative instrument ensures that entities which were previously subject to specific exemptions under the repealed class orders can continue to operate under those exemptions until 31 March 2026, subject to compliance with certain conditions. These conditions include providing ASIC with specified information about the financial services business operated in the jurisdiction and complying with any written notices from ASIC. The instrument extends its application nationally, aligning with the overarching framework of the Corporations Act 2001, and operates to provide a smooth transition for affected entities during the repeal of the specified class orders. The transitional relief is specifically tailored to maintain continuity for those entities that were benefiting from the exemptions prior to the repeal.
Key Provisions
The ASIC Corporations (Repeal and Transitional) Instrument 2016/396, specifically in Schedule 2, provides for the transitional continuation of relief that was previously given by certain repealed ASIC Class Orders. Section 1 of Schedule 2 outlines that exemptions specified in the repealed ASIC Class Orders continue to apply under certain conditions and circumstances. These exemptions include those related to financial services business operations within a jurisdiction, with specific provisions detailing the circumstances and conditions under which they apply. Notably, an exemption will continue to apply if a person has provided ASIC with the required evidence of a matter deemed adequate by ASIC in writing.
The obligations imposed by this legislative instrument require any person relying on these exemptions to comply with any written notices from ASIC, including providing specified information about their financial service business. Furthermore, if the exemption is relied upon on or after 1 April 2020, the person must have been able to rely on the exemption on 31 March 2020. These provisions are effective for a period starting from the commencement of the instrument and ending on 31 March 2026.
Failure to comply with the requirements of this instrument could result in civil or criminal consequences. Although the specific penalties are not detailed within the instrument, the breaches could potentially lead to actions under the Corporations Act 2001 or other relevant legislation, with penalties varying based on the nature and severity of the breach. These penalties could include fines and, in more severe cases, imprisonment.