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Media Release 23–220—Consultation on extending relief from design and distributions obligations

The Financial Services Committee of the Business Law Section of the Law Council of Australia (the Committee) provided a submission to the Australian Securities and Investments Commission (ASIC) in response to ASIC’s proposal set out in ASIC Media Release 23-220 (which was issued on 15 August 2023) (the Media Release) and the draft legislative instrument made available under cover of the Media Release (the Draft Instrument).

ASIC has invited industry feedback on a proposal to extend the operation of the ASIC Corporations (Design and Distribution Obligations Interim Measures) Instrument 2021/784 (the Primary Instrument) for a further five years.

The Primary Instrument was initially made for a period of two years, and implements measures announced by Treasury which include relief for distributors from the obligation to report to product issuers if they received no complaints during a reporting period.

The Primary Instrument is due to sunset on 1 October 2023, and ASIC is proposing to make the amendments to the Primary Instrument as per the Draft Instrument.

The Committee agrees with ASIC that the Primary Instrument is operating effectively and efficiently, and that it continues to form a necessary and useful part of the legislative framework.

In the absence of Treasury making corresponding changes to the Corporations Act 2001 (Cth) the Committee therefore supports the making of a legislative instrument in the form of the Draft Instrument to allow those parts of the Primary Instrument that remain relevant to continue to have effect.

Last Updated on 30/08/2023

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