ASIC has released a consultation paper proposing to remake its class order on managed investment scheme buy-backs, currently due to expire (‘sunset’) on 1 April 2018, and proposed changes to platforms policy.
ASIC proposes to remake the class order with minor changes. In ASIC's view, the class order in general is operating effectively and efficiently and an amended version of the class order would continue to form a necessary and useful part of the legislative framework. The fundamental policy principles that underpin the class order have not changed.
The new instrument would continue the relief currently given by [CO 07/422] On-market buy-backs by ASX-listed schemes without significant changes, so that the ongoing effect will be preserved without any disruption to the entities that rely on it. However, ASIC is proposing to:
- expand the relief to cover an ASX-listed scheme that has more than one class of interest; and
- simplify requirements where a responsible entity or its nominee exercises a discretion.
ASIC also seeks feedback on its proposed updates to the guidance on managed investment scheme buy-backs.
Consultation Paper 269 Remaking ASIC class order on managed investment scheme buy-backs and updating related guidance (CP 269) outlines ASIC's rationale for proposing to remake the instrument and details of the updated regulatory guidance.
The draft ASIC instrument, which reflects the amendments proposed in the consultation paper, can be viewed on our website (see: CP 269)
Submissions on CP 269 are due by 23 November 2016.
Background
Under the Legislative Instruments Act 2003, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them. This ensures that legislative instruments like class orders are kept up to date and only remain in force while they are fit for purpose and relevant.
Where an instrument is considered to be operating effectively and efficiently and still serves a regulatory purpose we will consult on remaking it even if there will be no significant changes.