Explanatory Statement
ASIC Corporations (Repeal) Instrument 2025/170
This is the Explanatory Statement for ASIC Corporations (Repeal) Instrument 2025/170.
The Explanatory Statement is approved by the Australian Securities and Investments Commission (ASIC).
Summary
1. The instrument repeals three class orders relating to employee incentive schemes.
Purpose of the instrument
2. The instrument repeals ASIC Class Order [CO 14/978], ASIC Class Order [CO 14/1000] and ASIC Class Order [CO 14/1001].
Consultation
3. ASIC replaced ASIC Class Order [CO 14/978], ASIC Class Order [CO 14/1000] and ASIC Class Order [CO 14/1001] with ASIC Corporations (Employee Incentive Schemes – Ongoing Relief) Instrument 2025/169 after simple consultation published on 20 January 2025: CS 14 Proposed remake of relief for employee incentive schemes.
Operation of the instrument
4. The Schedule to the instrument lists instruments that are repealed, namely ASIC Class Order [CO 14/978], ASIC Class Order [CO 14/1000] and ASIC Class Order [14/1001]. These instruments were due to expire on 1 April 2025 under section 50 of the Legislation Act 2003
5. The instrument commences the day after it is registered on the Federal Register of Legislation.
Legislative authority
6. The instrument is a disallowable legislative instrument made under subsections 283GA(1), 601QA(1),741(1), 926A(2), 992B(1) and 1020F(1) and paragraph 911A(2)(l) of the Corporations Act 2001.
7. Under subsection 33(3) of the Acts Interpretation Act 1901 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.
Statement of Compatibility with Human Rights
8. The Explanatory Statement for a disallowable legislative instrument must contain a Statement of Compatibility with Human Rights under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011. A Statement of Compatibility with Human Rights is in the Attachment.
Attachment
Statement of Compatibility with Human Rights
This Statement of Compatibility with Human Rights is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
ASIC Corporations (Repeal) Instrument 2025/170
Overview
1. ASIC Corporations (Repeal) Instrument 2025/170 repeals three instruments that relate to employee incentive schemes and that were due to expire under section 50 of the Legislation Act 2003.
Assessment of human rights implications
2. This instrument does not engage any of the applicable rights or freedoms.
Conclusion
3. This instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
The ASIC Corporations (Repeal) Instrument 2025/170, enacted by the Australian Securities and Investments Commission (ASIC), addresses the need to repeal three class orders concerning employee incentive schemes. These class orders, namely ASIC Class Order [CO 14/978], ASIC Class Order [CO 14/1000], and ASIC Class Order [CO 14/1001], were due to expire on 1 April 2025 under section 50 of the Legislation Act 2003. The repeal was carried out to streamline and modernise the regulatory framework governing employee incentive schemes, ensuring that ASIC's regulations remain effective and relevant. The instrument was developed following a period of consultation and replaces the repealed class orders with the ASIC Corporations (Employee Incentive Schemes – Ongoing Relief) Instrument 2025/169. This repeal ensures that the regulatory landscape remains current and aligned with the evolving needs of the financial sector.
Scope and Application
The ASIC Corporations (Repeal) Instrument 2025/170 is a legislative instrument issued by the Australian Securities and Investments Commission (ASIC) that repeals three existing class orders concerning employee incentive schemes. Specifically, the instrument repeals ASIC Class Order [CO 14/978], ASIC Class Order [CO 14/1000], and ASIC Class Order [CO 14/1001], which were due to expire on 1 April 2025 under section 50 of the Legislation Act 2003. The repeal takes effect the day after the instrument is registered on the Federal Register of Legislation. This instrument applies to entities and persons subject to the repealed class orders, particularly those involved in administering employee incentive schemes within corporate structures. Its jurisdictional reach is national, governed by the Commonwealth under the Corporations Act 2001, which provides the legislative authority for the instrument. The instrument does not include any specific exclusions or exemptions, and its repeal is a direct action without the need for subordinate instruments to extend or restrict its application. Additionally, the instrument has been assessed for compatibility with human rights, concluding that it does not engage any of the applicable rights or freedoms.
Key Provisions
The main operative sections of the ASIC Corporations (Repeal) Instrument 2025/170 are contained within its Schedule, which lists the instruments being repealed (Schedule, item 1). Specifically, the instrument repeals ASIC Class Order [CO 14/978], ASIC Class Order [CO 14/1000], and ASIC Class Order [CO 14/1001]. These class orders, which related to employee incentive schemes, were set to expire on 1 April 2025 under section 50 of the Legislation Act 2003. The instrument itself commences the day after it is registered on the Federal Register of Legislation.
The obligations and requirements imposed by this instrument on the parties or entities it governs are primarily concerned with the cessation of compliance with the repealed class orders. These class orders previously provided specific relief and guidelines for employee incentive schemes, and their repeal means that entities will no longer be required to adhere to the provisions set out in those orders. Instead, they must now comply with the new ASIC Corporations (Employee Incentive Schemes – Ongoing Relief) Instrument 2025/169, which was issued after consultation and came into effect on a date specified in that instrument.
In terms of offences, penalties, or consequences for breach, the Explanatory Statement does not explicitly outline any criminal or civil penalties for failing to comply with the repealed class orders after the repeal instrument takes effect. However, it is important to note that any actions taken under the repealed orders before the repeal becomes effective may still be subject to the relevant penalties under the Corporations Act 2001 or other applicable laws. The repeal itself is a legislative action intended to streamline regulations and ensure that current laws reflect the most recent guidance and best practices.
The ASIC Corporations (Repeal) Instrument 2025/170 is a disallowable legislative instrument made under various subsections of the Corporations Act 2001, and it includes a Statement of Compatibility with Human Rights as required by the Human Rights (Parliamentary Scrutiny) Act 2011. The Statement confirms that the repeal does not engage any of the applicable rights or freedoms, and thus, the instrument is deemed compatible with human rights as recognised in international instruments.