As of Xcode 8 beta 6 I now get the compile error \"Cannot inherit from non-open class (Class)\" outside of its defining module\"
The class I was inheriting from was
Found the answer myself.
In Swift 3 you can now mark a class as open instead of public this allows files outside of the module to subclass that class.
open
public
Simply replace public in your module class with open.
Reference here.