The Australian Securities and Investments Commission (ASIC) has proposed remaking three banking and insurance class orders that are due to expire between October this year and October 1 2017.

The remakes will update names, formats, legislative references and definitions. ASIC also plans to simplify the drafting process, to make the new instruments easier to understand.

Class order CO 05/1070 – which provides relief from the requirement for a licensee to appoint a distributor of a general insurance product as its authorised representative – will be rolled into a similar order that applies to agency banking (CO 04/909).

ASIC proposes repealing class order CO 06/623, which provides relief to insurers who receive client monies on behalf of the issuer of the insurance product from trust account requirements under the Corporations Act. It says this class order is no longer required because the relief it provides is available under the Corporations Act. 

Class order CO 05/681 – which removes the requirement to include an interest rate in a product disclosure statement and a termination value in a periodic statement for deposit products – will also be remade.

ASIC has opened the proposals for consultation, with submissions due by July 7.

The consultation paper is available here.