ASIC has released a consultation paper proposing to remake its class order relating to Product Disclosure Statement (PDS) requirements where a quote for a general insurance product is given during a telephone call that is not unsolicited. The class order is due to automatically repeal ('sunset') on 1 April 2022.
ASIC proposes to remake the class order. The fundamental policy principles that underpin the class order have not changed.
The new instrument would continue the relief currently given by [CO 11/842] PDS requirements where a quote for a general insurance product is given. This minimises disruption to the entities that use the instrument.
Consultation Paper 349 outlines ASIC's rationale for proposing to remake the instrument. ASIC invites submissions as to whether:
- the class order is currently operating effectively and efficiently and should therefore be remade;
- the conditions of relief should remain unchanged; and
- the remade legislative instrument should remain in force for 5 years or for a different period of time.
Submissions on CP 349 are due on 17 December 2021.
Background
Under the Legislation Act 2003, legislative instruments are repealed automatically, or 'sunset' after a period of time unless action is taken to preserve them. This ensures that instruments are kept up-to-date and only remain in force while they are relevant and fit for purpose.
Where an instrument continues to serve a regulatory purpose, ASIC will consult on remaking it even if there are minimal changes.
