ASIC proposes to extend the operation of 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, and
- ASIC Credit (Breach Reporting—Prescribed Commonwealth Legislation) Instrument 2021/801.
ASIC has assessed that these instruments, which are due to expire in October 2024, are operating efficiently and effectively, and continue to form a necessary and useful part of the legislative framework.
In extending operation of the instruments, ASIC will convert [CO 14/923] to the legislative instrument format and consolidate the relief in ASIC Instruments 2021/716 and 2021/801 into one instrument.
A consultation paper was not issued for this consultation.
Providing feedback
ASIC invites feedback on our proposal, including whether:
- the instruments are operating effectively and efficiently, and/or
- whether any amendments are required.
Stakeholders should send their submissions to rri.consultation@asic.gov.au by 5pm on 4 September 2024.
Stakeholders may choose to remain anonymous or use an alias when providing feedback. However, ASIC will not be able to contact stakeholders to discuss their feedback if it was submitted it in this manner.
Please note stakeholder feedback will not be treated as confidential unless stakeholders specifically request that we treat whole or part of it (such as any personal or financial information) as confidential.
Please see ASIC’s privacy policy for more information about how we handle personal information, rights to seek access to and correct personal information, and the right to complain about breaches of privacy by ASIC.
Background
[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.
ASIC Instrument 2021/716 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. The instrument also extends the period in which AFS licensees and credit licensees may report certain breaches that relate to an earlier reported breach.
ASIC Instrument 2021/801 modifies the law to specify the other Commonwealth legislation that is a core obligation for the purposes of the National Credit Act. Credit licensees must report significant breaches of core obligations under the National Credit Act.
