ASIC has today released a consultation paper proposing to remake class order, [CO 09/552] Changing scheme constitutions, on changing the constitution of registered schemes. The class order is due to expire (‘sunset’) on 1 October 2019.
[CO 09/552] provides relief in certain situations to vary how the constitution of a registered scheme may be modified, or repealed and replaced with a new constitution.
ASIC proposes to remake [CO 09/552] because it is operating effectively and continues to form a necessary and useful part of the legislative framework. The fundamental policy principles underpinning the class order have not changed.
The new instrument would continue the relief currently given by [CO 09/552] so that the relief will be preserved without any disruption to the entities that rely on it.
Consultation Paper 320 Remaking ASIC class order on changing scheme constitutions (CP 320) outlines ASIC’s rationale for proposing to remake the instrument.
ASIC invites submissions from responsible entities and other relevant stakeholders as to whether the class order is currently operating effectively and efficiently. Submissions on CP 320 are due on 23 August 2019.
Under the Legislation Act 2003, all class orders are repealed automatically or ‘sunset’ after a period (usually 10 years) unless ASIC takes action to preserve them. This ensures that legislative instruments like class orders are kept up-to-date and only remain in force while they are fit for purpose and relevant.
Where an instrument is operating effectively and efficiently and still serves a regulatory purpose, ASIC will consult on remaking it even only if minor changes are proposed.