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19-056MR ASIC remakes 'sunsetting' class order about warrants and out of use notices
ASIC has remade Class Order [CO 08/781] Warrants: Out-of-use notices, which was due to expire on 1 April 2019.
The new instrument, ASIC Corporations (Warrants: Out-of-use notices) Instrument 2019/148, continues to provide issuers of warrants relief from the requirement in the Corporations Act to notify ASIC when a warrant ceases to be available in certain circumstances. The relief is provided only to issuers of warrants offered under a Product Disclosure Statement (PDS) or Supplementary PDS covering two or more warrant products.
Under ASIC Corporations Instrument 2019/148, a warrant issuer will only need to lodge an out-of-use notice with ASIC when all the warrants to which the PDS or Supplementary PDS relates are no longer available.
The new instrument will continue the effect of the previous instrument with some minor amendments, which include simplifying the drafting to give greater clarity.
The relief was remade following ASIC’s public consultation in Consultation Paper 307 Remaking ASIC class order on warrants: out-of-use notices: [CO 08/781] (CP 307).
ASIC did not receive any submissions in response to CP 307.
Under the Legislation Act 2003, all class orders are repealed automatically or 'sunset' after a period (mostly 10 years) unless ASIC takes action to preserve them.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.
All government organisations are responsible for considering whether the legislative instruments they have made, which are due to sunset, will be relevant after their sunset date.