Commonwealth legislation

ASIC Class Order [CO 00/2460]

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Collection

legislative instrument

Plain English Summary

4/10 complexity

What this does

This Class Order gives special permission (an exemption) to companies that manage time-sharing schemes (holiday accommodation arrangements where investors buy rights to use property for set periods each year).

The change

Normally, these companies (called responsible entities) must value the scheme's property regularly under strict timelines. This document exempts them from that rule on one condition:

They must value assets as soon as practicable only when they have reasonable grounds to believe a valuation is either:
- In the best interests of members (the investors), or
- Necessary to treat all members fairly

Why this matters

Time-sharing schemes typically hold real estate that doesn't fluctuate in value daily. This exemption stops managers from wasting money on unnecessary valuations, while still forcing them to act when there's a genuine need to protect investors. The Order also tweaks financial reporting rules to recognise this new valuation approach.

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Current sections

Direct links to the current provisions in ASIC Class Order [CO 00/2460].

ASIC Class Order [CO 00/2460]

Australian Securities and Investments Commission

Corporations Law – Subsection 601QA(1) – Exemption and Declaration

Pursuant to paragraph 601QA(1)(a) of the Corporations Law (Law) the Australian Securities and Investments Commission (ASIC) hereby exempts each responsible entity of a time-sharing scheme from paragraph 601FC(1)(j) in relation to that scheme on the condition that, and for so long as, the responsible entity causes each item of scheme property of the scheme to be valued as soon as practicable after the
responsible entity has reasonable grounds to believe that a valuation of that item is in the best interests of members or is necessary for fairness to all members.

And pursuant to paragraph 601QA(1)(b) of the Law ASIC hereby declares that Chapter 5C of the Law applies to each responsible entity of a time-sharing scheme in relation to that scheme as if paragraph 601HA(1)(c) of the Law were modified or varied by inserting the word "valued" the words, "in accordance with the
conditions of any exemption under paragraph 601QA(1)(a) that exempts the responsible entity from paragraph 601FC(1)(j) or, if the responsible entity is not exempt under such exemption,".

Dated this 30th day of November 2000

Signed by Brendan Byrne

as a delegate of the Australian Securities and Investments Commission

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 ASIC Class Order [CO 00/2460]

Australian Securities and Investments Commission

Corporations Law – Subsection 601QA(1) – Exemption and Declaration

Dated this 30th day of November 2000

Signed by Brendan Byrne

as a delegate of the Australian Securities and Investments Commission