Federal Register of Legislation - Australian Government

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ASIC Class Order [CO 10/1257]

Authoritative Version
  • - F2010L03378
  • No longer in force
CO 10/1257 Orders/ASIC Class Orders as made
This Class Order makes minor variations to Class Order [CO 08/1] which provide that ASIC may exempt a class of persons from the provisions of Ch 5C and Pt 7.6 of the Act, respectively.
Administered by: Treasury
Registered 23 Dec 2010
Tabling HistoryDate
Tabled HR08-Feb-2011
Tabled Senate08-Feb-2011
Date of repeal 09 Aug 2013
Repealed by Treasury (Spent and Redundant Instruments) Repeal Regulation 2013

ASIC CLASS ORDER [CO 10/1257]

EXPLANATORY STATEMENT

 

Prepared by the Australian Securities and Investments Commission

Corporations Act 2001

 

The Australian Securities and Investments Commission (ASIC) makes ASIC Class

Order [CO10/1257] under paragraphs 601QA(1)(a) and 911A(2)(l) of the Corporations Act 2001 (the Act).

 

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

 

Paragraph 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 to a limited class of

GPBs that organise insurance on a non-commercial basis. The transitional period for compliance with the breach reporting conditions in [CO 08/1] was scheduled to end on 31 December 2010.

 

Treasury has indicated to ASIC that it may be appropriate for the regulation of GPBs and the terms of any exemption to be addressed by regulations. Treasury proposes consulting in January 2011.

 

2. Purpose of the class order

 

ASIC Class Order [CO 10/1257] extends the transitional period for compliance with the breach reporting conditions in [CO 08/1] by 6 months while Treasury consults on the issue. That is, until the first time that the body acquires, renews or renegotiates the terms of, the risk management product on or after 30 June 2011 but before 30 June 2012.

 

3. Operation of the class order

 

Paragraph 4 amends [CO 08/1] by substituting ‘30 June 2011’ in place of ‘31 December 2010’ and substituting '30 June 2012' in place of '31 December 2011' in subparagraphs 10(f)(i) and (ii), respectively. This means that on or after 30 June 2011 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) but by no later than 30 June 2012.

 

5. Consultation

 

In preparing [CO 10/1257] ASIC has taken account of Treasury's proposed consultation.