Remaking of Sunsetting Instrument without Significant Amendments – Australian Securities and Investment Commission
On 26 September 2018 the Australian Securities and Investment Commission (ASIC) remade the following instruments without significant amendments:
- ASIC Class Order 08/764 (due to sunset on 1 October 2018);
- ASIC Class Order 09/01051 (due to sunset on 1 April 2019); and
- ASIC Class Order 10/111 (due to sunset on 1 April 2020).
The instruments were remade and incorporated into the ASIC Corporations (Short Selling) Instrument 2018/745 (the Legislative Instrument). This took effect on 28 September 2018.
The Legislative Instrument sets out various relief and modifications relevant to short selling. Relevantly for the three sunsetting instruments, the Legislative Instrument continues conditional naked short selling relief in specific circumstances regarding:
- exchange traded options (see sections 7 and 8 of the Legislative Instrument);
- government bonds or bonds or debentures of a body corporate where the total amount of such bonds or debentures on issue is valued at over $100 million (see section 9 of the Legislative Instrument); and
- sales that arise under a deferred purchase agreement (see section 10 of the Legislative Instrument).
Consistent with Government best practice regulation requirements for sunsetting instruments, ASIC, after consultation with industry and the general public has assessed the Instruments as operating effectively and efficiently. Therefore, a Regulation Impact Statement is not required for remaking the Instruments.