media release

IR 04-69 ASIC clarifies relief to assist charities raise funds

Published

The Australian Securities and Investments Commission (ASIC) today released an updated version of Policy Statement 87: Charitable investment schemes and school enrolment deposits [PS 87] to reflect recent legislative changes and to provide additional clarification and guidance.

The policy statement sets out the relief from the fundraising, managed investment, debenture and licensing provisions of the Corporations Act 2001 (the Act) that ASIC may give to charities for the offer and operation of certain investment schemes.

The updated policy clarifies that relief applies only to interests in managed investment schemes and debentures offered by a charity and that, in general, ASIC will only give relief that is directly required to facilitate investment in such a financial product. Relief is given under Class Order [CO 02/184] for individual charities and Pro Forma [PF 97] for charities within a group for which there is a sponsor registered by ASIC.

The licensing relief for charitable investment schemes covers core activities of the charity associated with the scheme. These activities include:

  • dealing in financial products by offering and issuing financial products that form the scheme, i.e. debentures or interests in a managed investment scheme;
  • dealing in financial products that are assets of the scheme on behalf of its investors other than by issuing financial products;
  • holding assets of the scheme that are financial products or beneficial interests in financial products issued under the scheme; and
  • providing general financial product advice in the offer document issued in connection with the scheme.

ASIC’s Director of Regulatory Policy, Mr Mark Adams said, ‘The relief recognises that full compliance with the Act by a charity is not necessary in cases where an investor in a charitable scheme seeks to support the charitable purpose, and profit is not the primary consideration for investing’.

A copy of the updated [PS 87], Class Order [CO 02/184] and Pro Forma [PF 97] is available from the ASIC website at www.asic.gov.au, or by calling ASIC’s Infoline on 1300 300 630.

End of release

Download a copy of: