Commonwealth legislation

ASIC Class Order [CO 11/261]

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This Act has been repealed and is no longer in force. It is retained for historical reference.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 it did: This instrument granted temporary exemptions to specific trustee companies (those listed in Schedule 8AA of the Corporations Regulations) from two key consumer protection obligations under the financial services licensing regime.

The exemptions:

Dispute resolution: Companies did not need to maintain internal procedures for resolving client complaints (normally required under paragraph 912A(1)(g) of the Corporations Act) until 31 December 2011.
Compensation arrangements: They did not need to hold arrangements to compensate clients for losses caused by breaches (normally required under section 912B(1)) until 30 April 2011.

Important limitation: These exemptions only applied to "traditional trustee company services"—such as administering deceased estates, trusts, and powers of attorney—not to financial advice or other regulated financial services.

Why it mattered: It provided a grace period for trustee companies transitioning to the Australian Financial Services Licence (AFSL) regime, allowing them time to establish compliance systems without immediate penalty.

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Current sections

Direct links to the current provisions in ASIC Class Order [CO 11/261].

ASIC Class Order [CO 11/261]

Australian Securities and Investments Commission
Corporations Act 2001 – Paragraph 926A(2)(c) –
Declaration

Enabling provision

The Australian Securities and Investments Commission makes this instrument under paragraph 926A(2)(c) of the Corporations Act 2001 (the Act).

Title

This instrument is ASIC Class Order [CO 11/261].

Commencement

This instrument commences on the date it is registered under the Legislative Instruments Act 2003.

Note: An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, section 4 (definition of register). The FRLI may be accessed at http://www.frli.gov.au/.

Declaration

Part 7.6 of the Act (other than Divisions 4 and 8) applies in relation to a trustee company listed in Schedule 8AA to the Corporations Regulations 2001 as if regulation 6 of the Corporations Amendment Regulations 2010 (No. 3) were omitted and the following substituted:

“6 Transitional arrangements about dispute resolution and compensation

(1) For section 926B of the Act, this provision applies, on commencement of these Regulations until the end of the following dates, to a trustee company listed in Schedule 8AA to the Corporations Regulations 2001:

(a) for subregulation (2)—31 December 2011;

(b) for subregulation (3)—30 April 2011.

(2) In relation to traditional trustee company services provided by the trustee company, the company is exempt from the obligation in paragraph 912A(1)(g) of the Act.

(3) In relation to traditional trustee company services provided by the trustee company, the company is exempt from the obligation in subsection 912B(1) of the Act.”.

Dated this 18th day of March 2011

Signed by Stephen Yen PSM

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 11/261]