Federal Register of Legislation - Australian Government

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ASIC Class Order [CO 04/239]

Authoritative Version
CO 04/239 Orders/ASIC Class Orders as made
This Class Order provides for relief from licensing, hawking and disclosure obligations of Chapter 7 of the Corporations Act 2001 for persons who provide certain financial services in relation to factoring arrangements. The relief is conditional on disclosure of terms and conditions to retail clients and maintaining an internal dispute resolution system that covers retail client complaints.
Administered by: Treasury
General Comments: This instrument was published in the Australian Securities and Investments Commission Gazette on 10 March 2004.
Registered 02 May 2007
Gazetted 10 Mar 2004
Date of repeal 19 Sep 2017
Repealed by ASIC Corporations (Repeal) Instrument 2017/796
Table of contents.

Australian Securities and Investments Commission

Corporations Act 2001 — Paragraphs 911A(2)(l), 992C(1)(a) and 1020F(1)(a) — Exemption

 

Under paragraphs 911A(2)(l), 992B(1)(a) and 1020F(1)(a) of the Corporations Act 2001 (the Act) the Australian Securities and Investments Commission exempts:

 

1.      a person who is or proposes to be the purchaser of debt obligations under the terms of a factoring arrangement, on the conditions set out in the Schedule and for as long as the conditions are met; and

 

2.      a person who provides a financial service in relation to a factoring arrangement, other than a person referred to in paragraph 1;

 

from:

 

3.      the requirement to hold an Australian financial services licence for dealing in and giving financial product advice in relation to the factoring arrangement; and

 

4.      section 992A of the Act in relation to the making of an offer to issue the factoring arrangement; and

 

5.      Part 7.9 of the Act in relation to a recommendation to acquire, or an offer or issue of, or making an offer to arrange the issue of, the factoring arrangement.

 

Schedule

 

The person must:

 

1.              ensure that the terms and conditions of the factoring arrangement are given in writing to each retail client to whom the factoring arrangement is issued before the arrangement is issued; and

 

2.              establish and maintain an internal dispute resolution system that complies with the Australian Standard on Complaints Handling AS4269-1995 that covers complaints made by retail clients against the person in connection with a factoring arrangement.

 

Interpretation

 

In this instrument:

 

factoring arrangement means an arrangement (within the meaning of section 761A of the Act) under which a person acquires debt obligations, such as receivables, at a discount;

 

financial product advice has the meaning given by section 766B of the Act; and

 

retail client has the meaning given by section 761G of the Act.

 

Commencement

 

This instrument takes effect on gazettal.

 

 

Dated this 6th day of March 2004

 

 

 

 

Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission