ASIC report on FoFA relief decisions

ASIC has released its latest report outlining decisions on relief applications covering the period 1 June to 30 September 2013.

Businesses frequently approach ASIC for assistance to help make the law work better for them. ASIC uses its discretion to vary or set aside certain requirements of the law where there is a net regulatory benefit or where ASIC can facilitate business or cut red tape without harming other stakeholders.

This is a key part of ASIC’s function and between 1 June and 30 September 2013, ASIC approved 303 relief applications.

Report 382 Overview of decisions on relief applications (June to September 2013) (REP 382), aims to improve the level of transparency and the quality of publicly available information about decisions ASIC makes when asked to exercise its discretionary powers to grant relief from provisions of the:
– Corporations Act 2001 (Corporations Act)
– National Consumer Credit Protection Act 2009 (National Credit Act), or
– National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 (Transitional Act).

REP 382 also discusses the various relevant publications released by ASIC during the three months.

The report summarises examples of situations where ASIC has exercised, or refused to exercise, its exemption and modification powers under the Corporations Act and the licensing and responsible lending provisions of the National Credit Act. The report also highlights instances where ASIC has considered adopting a no-action position regarding specified non-compliance with statutory provisions.

Finally, the report provides examples of decisions that demonstrate how ASIC has applied its policy in practice which ASIC thinks will be of particular interest for capital market participants and for participants in the financial services industry. The report includes an appendix detailing the relief instruments referred to in the report.

EDITOR’S NOTE: SEE PAGE 17 OF ASIC REPORT FOR DETAILS OF FoFA ACTIONS