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.
“ASIC 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,” ASIC said.
“The fundamental policy principles that underpin the class order have not changed.”
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.