The Australian Securities and Investments Commission (ASIC) has announced a consultation on its proposal to extend three legislative instruments for a further five years:
- Class Order [CO 14/923] Record-keeping obligations for Australian financial services licensees when giving personal advice.
- ASIC Corporations and Credit (Breach Reporting—Reportable Situations) Instrument 2021/716.
- ASIC Credit (Breach Reporting—Prescribed Commonwealth Legislation) Instrument 2021/801.
ASIC said CO 14/923 modifies the Corporations Act to insert a new section 912G that imposes “specific record-keeping requirements when AFS licensees or their representatives (including advice providers) give personal advice to retail clients”.
The class order originally came into force in October 2016 and is set to expire on 1 October if it is not extended.
ASIC Instrument 2021/716, the regulator explained, modifies the Corporations Act to exclude “certain forms of non-compliance from being deemed ‘significant’ breaches of core obligations”, about which AFS licensees and credit licensees must lodge breach reports under the Corporations Act.
It also extends the period in which AFS licensees and credit licensees may report certain breaches that relate to an earlier reported breach.
The third instrument also relates to breach reporting but it is only relevant for credit licensees.
ASIC said it has assessed that these instruments are operating efficiently and effectively and “continue to form a necessary and useful part of the legislative framework”.
It added that as part of the proposed extension of the instruments, ASIC would convert CO 14/923 to the legislative instrument format and consolidate the relief in ASIC Instruments 2021/716 and 2021/801 into a single instrument.
Stakeholders have until 5pm on 4 September to make a submission on the proposal, with ASIC specifically requesting feedback on whether the instruments are operating effectively and efficiently, and/or whether any amendments are required.
“consultation” ? In light of ASIC’s recent banning of AIOFP talking (and writing I believe?) to all in ASIC except for Joe – will ASIC be maintaining this ban?