Monday August 15 2016

News Source: Global Exchanges

Focus: Other

Type: General




The Australian Securities and Investments Commission (ASIC) has issued a consultation paper proposing to remake three class orders that are due to expire (‘sunset’) on 1 October 2016 and 1 April 2017. The class orders affect the audit of proprietary companies and financial reporting by wholly-owned entities.

The consultation paper also seeks feedback on ASIC guidance documents on audit relief and on reporting relief for wholly-owned companies.

The class orders proposed to be remade under Consultation Paper 267 Remaking and repealing ASIC class orders on audit and financial reporting (CP 267) are: 

  • Class Order [CO 98/1417] Audit relief for proprietary companies
  • Class Order [CO 98/1418] Wholly-owned entities
  • Class Order [CO 01/1256] Qualified accountant.

Each class order has been redrafted using ASIC’s current style and format, while preserving the current effect of the instrument. The draft ASIC instruments, which reflect the amendments proposed in the consultation paper, are available on ASIC website under CP 267.

A draft revised Regulatory Guide 115 Audit relief for proprietary companies, and revised pro-formas referred to in the instruments, are also attached to CP 267 for comment. As well, ASIC is seeking feedback on existing ASIC guidance on financial reporting relief for wholly owned entities.

The new instruments retain most elements of the existing class orders. However, following consultation with the Australian Prudential Regulation Authority (APRA), are proposing to no longer allow companies which are regulated by APRA from obtaining the relief under the remade [CO 98/1418].

Finally, CP 267 proposes that Class Orders  Financial reports of superannuation funds, approved deposit funds and pooled superannuation trusts, which is due to expire on 1 October 2017,and Class Order [CO 99/1225] Financial reporting requirements for benefit fund friendly societies, which is due to expire on 1 October 2016, be repealed.

Submissions on CP 267 are due on 12 September 2016.

Click here for ASIC Class Orders & Guidance on Audit & Financial Reporting

Click on the link above for further details