(b) General insurance products and dollar disclosure In 2005, ASIC granted transitional relief for issuers of general insurance products from the dollar disclosure requirements 30 June 2006 under Class Order [CO 05/683] Dollar disclosure: further transitional relief. This extension followed the Government's announced review of product disclosure statement (PDS) requirements for deposit products and general insurance products as part of the Refinements to Financial Services Regulation Proposals Paper (May 2005). As a result of this review, the Government excluded basic deposit products from the PDS regime in December 2005, leaving non-basic and general insurance products under the PDS regime. However, the Government applied a modified PDS regime to issuers of general insurance products. The Government is now reviewing the application of the dollar disclosure regime to general insurance products (see the Corporate and Financial Services Regulation Review, 2006). Recognising the need for flexibility in compliance with dollar disclosure until a permanent position is developed, ASIC has extended transitional relief until 31 March 2007. The extension of relief is provided under Class Order [CO 06/476] Variation of Class Orders [CO 05/681] and [CO 05/683]. Further background information the dollar disclosure requirements and issuers of deposit products is available on the ASIC website. 2.5 ASIC reports on SFE group On 20 June 2006, the Australian Securities and Investments Commission (ASIC) released the findings of its fourth assessment of the Sydney Futures Exchange Limited (SFE) and SFE Clearing Corporation Limited (SFECC), and its second assessment of Austraclear Limited (Austraclear). Under the Corporations Act, ASIC is required to conduct an annual assessment of how well the SFE is complying with its obligations to supervise its market and how well SFECC and Austraclear are complying with their obligations to supervise their respective clearing and settlement facilities. ASIC has concluded that the SFE has adequate arrangements for supervising the market, including arrangements for: handling conflicts between its commercial interests and the obligation to operate the market in a fair, orderly and transparent way monitoring the conduct of participants, and enforcing compliance with its rules. SFE is already acting on suggested improvements to its supervision, compliance and disciplinary arrangements to ensure it can continue to comply with its obligations in the future. The report also that SFE suffered some outages on its SYCOM trading system in the last year. ASIC is satisfied that SFE has taken swift action to minimise the
(b) General insurance products and dollar disclosure In 2005, ASIC granted transitional relief for issuers of general insurance products from the dollar disclosure requirements 30 June 2006 under Class Order [CO 05/683] Dollar disclosure: further transitional relief. This extension followed the Government's announced review of product disclosure statement (PDS) requirements for deposit products and general insurance products as part of the Refinements to Financial Services Regulation Proposals Paper (May 2005). As a result of this review, the Government excluded basic deposit products from the PDS regime in December 2005, leaving non-basic and general insurance products under the PDS regime. However, the Government applied a modified PDS regime to issuers of general insurance products. The Government is now reviewing the application of the dollar disclosure regime to general insurance products (see the Corporate and Financial Services Regulation Review, 2006). Recognising the need for flexibility in compliance with dollar disclosure until a permanent position is developed, ASIC has extended transitional relief until 31 March 2007. The extension of relief is provided under Class Order [CO 06/476] Variation of Class Orders [CO 05/681] and [CO 05/683]. Further background information the dollar disclosure requirements and issuers of deposit products is available on the ASIC website. 2.5 ASIC reports on SFE group On 20 June 2006, the Australian Securities and Investments Commission (ASIC) released the findings of its fourth assessment of the Sydney Futures Exchange Limited (SFE) and SFE Clearing Corporation Limited (SFECC), and its second assessment of Austraclear Limited (Austraclear). Under the Corporations Act, ASIC is required to conduct an annual assessment of how well the SFE is complying with its obligations to supervise its market and how well SFECC and Austraclear are complying with their obligations to supervise their respective clearing and settlement facilities. ASIC has concluded that the SFE has adequate arrangements for supervising the market, including arrangements for: handling conflicts between its commercial interests and the obligation to operate the market in a fair, orderly and transparent way monitoring the conduct of participants, and enforcing compliance with its rules. SFE is already acting on suggested improvements to its supervision, compliance and disciplinary arrangements to ensure it can continue to comply with its obligations in the future. The report also that SFE suffered some outages on its SYCOM trading system in the last year. ASIC is satisfied that SFE has taken swift action to minimise the
CORPORATE-LAW-ELECTRONIC-BULLETIN-June-2006.docx