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ASIC Class Order [CO 12/622]

Authoritative Version
  • - F2012L01538
  • No longer in force
CO 12/622 Orders/ASIC Class Orders as made
This class order amends the ASIC Class Order [CO 10/630] to extend the maximum period of operation for a further 12 months, to allow additional time for the proposed amending regulations to be made and provides relief from the operation of the current long term superannuation performance reporting requirements that are proposed to be refined by proposed amending regulations.
Administered by: Treasury
Made 04 Jul 2012
Registered 12 Jul 2012
Tabled HR 14 Aug 2012
Tabled Senate 14 Aug 2012
Date of repeal 09 Aug 2013
Repealed by Treasury (Spent and Redundant Instruments) Repeal Regulation 2013

ASIC CLASS ORDER [CO 12/622]

 

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 12/622] under paragraph 1020F(1)(c) of the Corporations Act 2001 (the Act).

Paragraph 1020F(1)(c) of the Act provides that ASIC may declare that Part 7.9 of the Act applies in relation to a person or a financial product, or a class of persons or financial products, as if specified provisions were omitted, modified or varied as specified in the declaration.

1.                  Background

 

Regulation 7.9.20AA of the Corporations Regulations 2001 (the Regulations) require regulated superannuation funds (other than self-managed superannuation funds) to disclose long term performance returns to assist members to understand the long term performance of their superannuation. These are referred to in this Explanatory Statement as the “long term performance reporting regime”.

 

On 19 February 2010, following discussions with the superannuation industry, the Minister for Financial Services, Superannuation and Corporate Law announced refinement proposals to the long term performance reporting regime.

 

Under the proposals:

 

(a)                exit statements are to be excluded from the regime;

 

(b)               industry are to be permitted to use inserts to provide five-year performance information until 30 June 2011;

 

(c)                “traditional” funds of an insurance nature are to be exempted from the regime; and

 

(d)               approved deposit funds and pooled superannuation trusts are to be permitted to provide annual reports online.

 

Class Order [CO 10/630] (the principal class order) provides relief from the operation of the current long term performance reporting regime that are proposed to be refined, by implementing the proposed refinements pending the commencement of amending regulations. This assists industry by providing greater certainty regarding their compliance obligations.

 

The principal class order also extended transitional disclosure requirements under subregulation 7.9.20AA(2) of the Regulations so that it also covered the period from 1 July 2010 to 30 June 2011.

 

ASIC subsequently made Class Order [CO 11/554], which varied the principal class order to extend the maximum period of operation of the principal class order to 19 July 2012.  Class Order [CO 11/554] did not extend the transitional disclosure requirements under subregulation 7.9.20AA(2) of the Regulations for a period beyond 30 June 2011.

 

2.         Purpose of the class order

The purpose of this class order is to extend the maximum period of the operation of the principal class order for a further 12 months so as to allow additional time for the proposed amending regulations to be made to implement the refinements announce by the Minister.

3.         Operation of the class order

This class order extends the operation of the principal class order to the earlier of:

(a)               the commencement of amendments to the Regulations which have the same or similar effect to the modifications or variations made by the principal class order; and

(b)               19 July 2013.

4.        Statement of Compatibility with Human Rights

This statement is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

This class order is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 because it does not engage any of the applicable rights or freedoms.

5.         Consultation

 

Before making this class order, ASIC consulted with the Department of the Treasury, but did not engage in consultation with industry. The class order is a transitional measure of a minor or machinery nature.