Australia financial regulator ASIC has today released a consultation paper proposing to maintain markets and securities relief that ASIC has previously provided from certain obligations under the Corporations Act.
The consultation paper also sets out ASIC’s proposal to withdraw some relief. This consultation paper is part of ASIC’s response to the ‘sunsetting’ of legislative instruments.
The instruments which ASIC proposes to remake are:
• Class Order [CO 01/1519] Disclosure of directors’ interests;
• Class Order [CO 02/313] Part 7.11 – Transfers of securities under Division 3;
• Class Order [CO 02/608] Warrants: relief from PDS requirements for secondary sales;
• Corporations (Low Volume Financial Markets) Exemption Notice 2003;
• Class Order [CO 03/826] Market related records: Australian financial service licensees dealing on overseas markets;
• Class Order [CO 03/911] Licensing relief for self-dealers who provide general product advice about own securities;
• Class Order [CO 03/957] ASX managed investment warrants – disclosure and reporting exemptions;
• Class Order [CO 06/682] Multiple derivative issuers; and
• Class Order [CO 07/183] Transfer of Australian securities traded in New Zealand.
ASIC has found these instruments are operating effectively and efficiently, and continue to form a necessary and useful part of the legislative framework. ASIC is therefore proposing that these instruments will continue in operation.
However, ASIC is proposing to vary the application of the Corporations (Low Volume Financial Markets) Exemption Notice 2003 by increasing the transaction threshold of low volume financial markets and amending the transaction period to which the transaction threshold applies.
ASIC also proposes to amend the application of Class Order [CO 01/1519] such that it no longer imposes certain conditions on the relief.
ASIC proposes to repeal Class Order [CO 02/284] CHESS approved foreign securities, having formed the preliminary view that this relief is no longer required.
Consultation Paper 262 Remaking and repealing ASIC class orders on markets and securities (CP 262) outlines the class orders to be remade and the class order to be repealed.
Submissions on CP 262 are due on Friday, 12 August 2016.