ASIC remakes underlying investment class orders
The Australian Securities and Investments Commission (ASIC) has released a consultation paper to remake three class orders that provide relief for dealing in underlying investments that are due to ‘sunset', or expire, in April 2017.
The corporate regulator is seeking to remake all three class orders into a single instrument so that the relief in each class order can continue beyond the expiration date in a new legislative instrument.
ASIC is looking to remake the following class orders:
• Class Order [CO 02/1161] Licensing relief (dealing) for public offer superannuation entities;
• Class Order [CO 02/1073] Financial Services Guide: Dealing in underlying investments by responsible entities; and
• Class Order [CO 02/1074] Financial Services Guide: Dealing in underlying investments by superannuation trustees.
ASIC would also like to update the name of the legislative instrument, simplify the drafting for better clarity, and update legislative references and definitions.
[CO 02/1161] exempts public offer superannuation fund trustees from having to hold an Australian financial services licence for dealing in financial products on behalf of members when running a superannuation fund.
The other class orders exempt responsible entities and super trustees from providing a financial services guide when dealing in underlying investments on behalf of investors or members when running a fund.
"ASIC proposes to remake these class orders without significant changes before they sunset, so that their ongoing effect will be preserved without any disruption to the entities who rely on them," ASIC said.
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