ASIC has issued Class Order CO 10/45Variation of CO 08/1 Group purchasing bodies, extending the transitional period for compliance with the breach reporting requirement in Class Order 08/1 Group purchasing bodies (CO 08/1) until 28 February 2010.

The transitional period for compliance with this requirement was due to expire on 31 January 2010. CO 08/1 gives conditional relief from the Australian Financial Services licensing regime and Chapter 5C of the Corporations Act for some group purchasing bodies who arrange or hold risk management products for the benefit of third parties. Regulatory Guide 195 Group purchasing bodies for insurance and other risk management products (RG 195) explains ASIC’s policy underlying the conditional relief granted in CO 08/1.

The transitional period for compliance with the breach reporting requirement in this class order was originally extended to 31 January 2010 as stakeholders had raised questions about how the eligibility tests in CO 08/1 operate. The further extension is required for ASIC to finalise the necessary clarifications. ASIC anticipates that clarifications of CO 08/1 and RG 195 will be accompanied with a further extension of the transitional period for compliance with the breach reporting requirements in CO 08/1 to enable relevant stakeholders to understand the clarifications.

Further details are available at ASIC.