ASIC consults on remaking class order on credit union member shares

ASIC has released a consultation paper proposing to remake a class order due to expire in 2018.

The instrument ASIC proposes to remake without significant changes is Class Order [CO 02/1176] Credit union member shares.

ASIC says it considers this instrument is operating effectively and efficiently and continues to form a necessary and useful part of the legislative framework.

"The fundamental policy principles that underpin the class order have not changed. No substantive changes are proposed," ASIC said.

"Consultation Paper [283] Remaking ASIC class order on credit union member shares: [CO 02/1176] (CP 283) outlines the class order proposed to be remade as a new instrument and our rationale for remaking it."

The existing class order gives relief from:

AFS licensing and disclosure requirements in relation to the provision of financial product advice and dealing in ‘member shares’

The requirement to give information to members confirming the issue or redemption of these kinds of shares

The only proposed material change to the substance of the relief in [CO 02/1176] is the removal of relief in relation to dealing in member shares. We do not consider that this relief is necessary because credit unions may already be able to rely on the exemption in paragraph 766C(4) of the Corporations Act.

Submissions on CP 283 are due on 23 June 2017.