Group purchasing bodies (GPBs) are no longer required to report breaches of the conditions of relief provided by ASIC Class Order 08/1 (Class Order). The obligation to comply with the breach reporting condition in the Class Order was due to commence from 30 June 2017 but has been repealed.
GPBs are persons who arrange or hold cover under risk management products for others but neither issue risk management products (except for interests in a risk management scheme) nor provide any financial product advice (except as a result of providing certain general information). The Class Order provides conditional relief to a limited class of GPBs that organise insurance on a non-commercial basis. One of these conditions was a requirement to report to ASIC breaches of the other conditions.
The breach reporting condition was subject to a transitional period for compliance, which was due to end on 30 June 2017. The transitional period was intended to give the Government and ASIC time to consider how issues raised by GPBs could be addressed by amendments to the Corporations Regulations 2001 and to consult with stakeholders regarding the regulations. However, ASIC have been advised that the Government will not be progressing consideration of the regulations. The Class Order is due to sunset on 1 October 2018.
This means that while the Class Order remains in effect, GPBs to whom the Class Order applies will not be required to report breaches of the conditions of that Class Order. ASIC may choose to continue the relief beyond the sunset date via introducing a new legislative instrument, in which case part of ASIC’s public consultation will relate to whether a breach reporting condition should be included in the new instrument.