Federal Register of Legislation - Australian Government

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ASIC Class Order [CO 09/728]

Authoritative Version
  • - F2009L03728
  • No longer in force
CO 09/728 Orders/ASIC Class Orders as made
This Class Order makes variations to ASIC Class Order [CO 08/1] by extending the transitional period granted for compliance with subparagraph 10(f) by four months.
Administered by: Treasury
General Comments: This Class Order was published in the Australian Securities and Investments Commission Gazette on 01/10/2009.
Registered 01 Oct 2009
Tabling HistoryDate
Tabled HR19-Oct-2009
Tabled Senate26-Oct-2009
Date of repeal 09 Aug 2013
Repealed by Treasury (Spent and Redundant Instruments) Repeal Regulation 2013

ASIC CLASS ORDER [CO 09/728]

 

EXPLANATORY STATEMENT

 

Prepared by the Australian Securities and Investments Commission

Corporations Act 2001

The Australian Securities and Investments Commission (ASIC) makes ASIC Class Order [CO 09/728] under ss601QA and 911A(2)(l) of the Corporations Act 2001 (the Act).

Section 601QA(1)(a) provides that ASIC may exempt a class of persons from the provisions of Ch 5C of the Act.

Section 911A(2)(l) provides that ASIC may exempt a class of persons from the requirement to hold an Australian Financial Services licence (AFS licence) under Pt 7.6 of the Act.

1.         Background

ASIC Class Order [CO 08/1] gives conditional relief from the AFS licensing regime and Ch 5C of the Act for some group purchasing bodies (GPBs) who arrange or hold risk management products (insurance) for the benefit of third parties. GPBs include sporting and other not-for-profit organisations which arrange insurance for third parties (e.g. players or volunteers).

ASIC Class Order [CO 08/1] provides conditional relief only to a limited class of GPBs who organise insurance on a non-commercial basis. The transitional period for compliance with [CO 08/1] was scheduled to end on 30 September 2009. Industry have asked ASIC to clarify [CO 08/1] and its policy for relief as explained in RG 195 Group purchasing bodies for insurance and other risk management products (RG 195).

2.         Purpose of the class order

ASIC Class Order [CO 09/728] extends the transitional period for compliance with [CO 08/1] by four months to enable ASIC to make any necessary amendments to [CO 08/1] and RG 195 to clarify how the eligibility tests in the relief operate.

3.         Operation of the class order

Paragraph 4 amends [CO 08/1] by substituting ‘31 January 2010’ in place of ‘30 September 2009’ in subparagraph 10(f). This means that from 1 February 2010 GPBs relying on relief under [CO 08/1] will need to report any breaches of the conditions of [CO 08/1] to ASIC under subparagraph 10(f).

5.         Consultation

In preparing [CO 09/728] ASIC has taken account of concerns articulated by the National Insurance Brokers Association of Australia (NIBA). ASIC did not undertake further consultation as [CO 09/728] is of a minor and machinery nature.