The Australian Securities and Investments Commission (ASIC) has today released a consultation paper proposing to remake its class order regarding warrants and out-of-use notices. The class order is due to expire ('sunset') on 1 April 2019.

ASIC proposes to remake the class order, as in ASIC’s view, it is operating effectively and efficiently, and it continues to form a necessary and useful part of the legislative framework. The fundamental policy principles that underpin the class order have not changed.

The new instrument would continue the relief, without significant changes, currently given by Class Order [CO 08/781] Warrants: Out-of-use notices, so that the ongoing effect will be preserved without any disruption to the entities that rely on it.

Consultation Paper 307 Remaking ASIC class order on warrants: out-of-use notices (CP 307) outlines ASIC's rationale for proposing to remake the instrument. CP 307 invites submissions from relevant stakeholders as to whether the class order is currently operating effectively and efficiently.

Submissions on CP 307 are due on 6 February 2019.

Background

Under the Legislative Instruments Act 2003, all class orders are repealed automatically or 'sunset' after a period of time (usually 10 years) unless ASIC takes action to preserve them.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 if minor changes are proposed.