ASIC Corporations (Repeal) Instrument 2015/684

Administered by Department of the Treasury

Legislation au F2015L01181 Not in force Legislative Instrument

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EXPLANATORY STATEMENT for
ASIC Corporations (Repeal) Instrument 2015/684

Prepared by the Australian Securities and Investments Commission

 

Corporations Act 2001

 

The Australian Securities and Investments Commission (ASIC) makes the ASIC Corporations (Repeal) Instrument 2015/684 under paragraphs 926A(2)(c), 992B(1)(c), 1020F(1)(a) and 1020F(1)(c) of the Corporations Act 2001 (the Act).

Paragraph 926A(2)(c) provides that ASIC may declare that Part 7.6 of the Act (other than Divisions 4 and 8) applies in relation to a person or class of persons as if specified provisions were modified.

Paragraph 992B(1)(c) provides that ASIC may declare that Part 7.8 of the Act applies in relation to a person or class of persons as if specified provisions were modified.

Paragraph 1020F(1)(a) provides that ASIC may exempt a person or class of persons from Part 7.9 of the Act or specified provisions in that Part and paragraph 1020F(1)(c) provides that ASIC may declare that Part 7.9 of the Act applies in relation to a person or a class of persons as if specified provisions were modified.

 

  1.                                             Background

Under the Legislative Instruments Act 2003 (Legislative Instruments Act), legislative instruments cease automatically, or ‘sunset’, after 10 years, unless action is taken to exempt or preserve them. To preserve its effect, a legislative instrument must be remade before its sunset date.

In May 2015, ASIC released Consultation Paper 230 Remaking ASIC class orders on banking and insurance (CP 230). CP 230 outlined ASIC’s proposals for dealing with four legislative instruments due to sunset between 1 October 2015 and 1 October 2017. Following CP 230, ASIC has remade three of the relevant legislative instruments to preserve their effect. The instruments that have been remade are:

  • ASIC Class Order [CO 04/909] ([CO 04/909]) Agency banking, which reduced unnecessary regulatory requirements in relation to the authorisation of distributors of basic deposit products;
  • ASIC Class Order [CO 05/681] ([CO 05/681]) Transitional relief for deposit product providers — PDSs and periodic statements, which removed the unnecessary burden of disclosing:
    • interest rates in a Product Disclosure Statement for a deposit product; and
    • a termination value in a periodic statement for a deposit product; and
  • ASIC Class Order [CO 05/1070] ([CO 05/1070]) General insurance distributors, which reduced unnecessary regulatory requirements in relation to the authorisation of distributors of general insurance products.

[CO 04/909] and [CO 05/1070] have been remade as the ASIC Corporations (Basic Deposit and General Insurance Product Distribution) Instrument 2015/682. [CO 05/681] has been remade as the ASIC Corporations (Deposit Product Disclosure) Instrument 2015/683.

ASIC Class Order [CO 06/623]

ASIC has decided not to remake the fourth legislative instrument discussed in CP 230. That instrument is ASIC Class Order [CO 06/623] ([CO 06/623]) Relief for certain general insurers from s981B account requirements.

ASIC made [CO 06/623] for the avoidance of doubt. At the time there was a concern that the client money requirements under Subdivision A of Division 2 of Part 7.8 and section 1017E of the Act may apply inappropriately where one insurer received premium payments as the agent of another insurer. [CO 06/623] dealt with this issue by exempting the insurer that receives the payments from the client money handling provisions in Part 7.8 if that insurer complies with the money handling obligations under section 1017E.

However, the client money handling requirements in the Act apply in the same way regardless of whether premium payments are collected by the insurer that issues the contract or by another insurer acting as the issuer’s agent. The exemption from Subdivision A of Division 2 of Part 7.8 contained in paragraph 981A(2)(c) extends to money collected by insurers that act as agents of the issuing insurer. This exemption will apply to the money if it is treated in accordance with section 1017E. As a result, the relief provided by [CO 06/623] is otherwise available under the ordinary operation of the Act.

 

2.                                                Purpose of the instrument

The purpose of the ASIC Corporations (Repeal) Instrument 2015/684 is to:

  • repeal [CO 04/909], [CO 05/681] and [CO 05/1070] now that new legislative instruments preserving their effect have been made; and
  • repeal [CO 06/623] as it is no longer required.

 

3.                                                Operation of the instrument

Clause 4 of the provides that each of the instruments set out in Schedule 1 are amended or repealed as set out in that Schedule. Schedule 1 provides that [CO 04/909], [CO 05/681], [CO 05/1070] and [CO 06/623] are repealed in full.

 

4.                                                Consultation

As part of its review of [CO 04/909], [CO 05/681], [CO 05/1070] and [CO 06/623], ASIC released CP 230. CP 230 outlined ASIC’s proposals to:

  • remake [CO 04/909] and [CO 05/1070] as a single legislative instrument;
  • remake [CO 05/681]; and
  • repeal [CO 06/623].

ASIC received 3 submissions in response to CP 230. No submissions received raised any concerns with ASIC’s proposals.

 

Overview

The ASIC Corporations (Repeal) Instrument 2015/684 was enacted to address the issue of legislative instruments set to 'sunset' under the Legislative Instruments Act 2003. The Australian Securities and Investments Commission (ASIC) issued this instrument under the Corporations Act 2001 to ensure the continuity of regulatory frameworks governing the authorisation of distributors of basic deposit products and general insurance products, as well as to streamline the disclosure requirements for deposit products. The primary objective of this instrument is to repeal certain ASIC class orders that have been superseded by new legislative instruments, thereby maintaining the effectiveness of the regulatory regime without unnecessary burdens. ASIC decided not to remake one of the class orders, ASIC Class Order [CO 06/623], as its purpose is already covered under the existing provisions of the Corporations Act. The instrument was developed following consultation with stakeholders, which resulted in no objections to ASIC's proposals outlined in Consultation Paper 230.

Scope and Application

The ASIC Corporations (Repeal) Instrument 2015/684 is an Australian legislative instrument made by the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001. This instrument repeals four existing ASIC Class Orders: [CO 04/909] Agency banking, [CO 05/681] Transitional relief for deposit product providers — PDSs and periodic statements, [CO 05/1070] General insurance distributors, and [CO 06/623] Relief for certain general insurers from s981B account requirements. The repeal of these orders follows the creation of new legislative instruments designed to preserve their effect, except for [CO 06/623], which has become redundant due to existing provisions in the Corporations Act. The repealed orders applied to various entities and individuals involved in the distribution of basic deposit and general insurance products, as well as the disclosure of financial product information, and the handling of client money by insurers acting as agents. This repeal aligns with the legislative requirement that instruments sunset after 10 years unless renewed, and follows consultation with stakeholders as outlined in Consultation Paper 230.

Key Provisions

The ASIC Corporations (Repeal) Instrument 2015/684 outlines the repeal of several ASIC class orders under the Corporations Act 2001 (the Act). Specifically, the instrument repeals ASIC Class Order [CO 04/909] on agency banking, ASIC Class Order [CO 05/681] on transitional relief for deposit product providers, ASIC Class Order [CO 05/1070] on general insurance distributors, and ASIC Class Order [CO 06/623] on relief for certain general insurers from s981B account requirements (paragraphs 1(a)-(d)). These class orders were repealed as they have been replaced by new legislative instruments that preserve their effect. The repealed class orders imposed various obligations and requirements on entities such as banks and insurance companies. For instance, [CO 04/909] and [CO 05/1070] reduced unnecessary regulatory requirements in relation to the authorisation of distributors of basic deposit products and general insurance products, respectively. [CO 05/681] removed the burden of disclosing interest rates in a Product Disclosure Statement for a deposit product and a termination value in a periodic statement for a deposit product. [CO 06/623] exempted certain general insurers from the client money handling provisions if they complied with specific money handling obligations. These class orders aimed to streamline regulatory requirements and reduce unnecessary burdens on entities. The instrument does not directly outline specific offences, penalties, or consequences for breach, as it primarily deals with the repeal of existing class orders. However, the original class orders likely imposed obligations that, if breached, could result in enforcement actions by ASIC under the Corporations Act. Such actions could include civil penalties, criminal charges, and other regulatory sanctions. The maximum penalties for breaches under the Act can vary widely depending on the specific provision breached and the nature of the contravention. In summary, the ASIC Corporations (Repeal) Instrument 2015/684 serves to repeal certain class orders that have been replaced by new legislative instruments, aiming to streamline regulatory requirements and reduce burdens on entities. While the instrument itself does not introduce new offences or penalties, entities subject to the repealed class orders must ensure compliance with the new legislative framework to avoid potential enforcement actions under the Corporations Act.

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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.