ASIC releases consult on debentures
The Australian Securities and Investments Commission (ASIC) has released a consultation paper proposing to remake its class order relating to how debentures are described which is other wise due to expire on 1 April, 2022.
Consultation Paper 344 Remaking ASIC class order on when debentures can be called secured notes (CP 344) outlined ASIC's rationale for proposing to remake the instrument and were due on 29 July, 2021.
Submissions were required on:
- Whether the class order was currently operating effectively and efficiently;
- Whether the conditions of relief should remain unchanged; and
- Whether the remade legislative instrument should remain in force for 10 years or for a shorter period of time.
âASIC proposes to remake the class order, as it is operating effectively and efficiently and continues to form a necessary and useful part of the legislative framework,â ASIC said.
âThe fundamental policy principles that underpin the class order have not changed.â
The new instrument would continue the relief currently given by [CO 12/1482] When debentures can be called secured notes without significant changes. This minimised disruption to the entities that used the instrument.
Under the Legislation Act 2003, legislative instruments cease automatically after a period of time unless action was taken to preserve them.
AUTHOR
Chris Dastoor
Recommended for you
The Reserve Bank of Australia (RBA) has lowered rates to a level not seen since mid-2023.
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASICâs governance arrangements are no longer âfit for purposeâ in a time when financial markets are quickly innovating and cyber crime becomes a threat.
