Consultation Paper 363 Remaking ASIC class order on financial requirements for retail OTC derivative issuers (CP 363)
The Corporations Committee and the Financial Services Committee of the Business Law Section of the Law Council of Australia (the Committees) appreciate the opportunity to comment on the proposal by the Australian Securities and Investments Commission (ASIC) in CP 363 to remake ASIC Class Order [CO 12/752] Financial requirements for retail OTC derivative issuers (the Class Order) and provide feedback as to whether the Class Order is currently operating effectively and efficiently.
The Committees agree that the Class Order forms a necessary and useful part of the legislative framework governing retail OTC derivative issuers. The Committees’ view is that it strikes an appropriate balance between seeking to ensure that issuers maintain sufficient resources to support their businesses, without imposing an unreasonable burden on retail OTC derivative issuers or operating as an impediment to competition in the market. In particular, the Committees agree with the proposals to remake the Class Order for a further five years and also to retain the existing financial, reporting and audit requirements.