ASIC today released a consultation paper proposing amendments to periodic statement requirements. The paper also proposes relief for managed investment schemes trading on the ASX AQUA market.

Consultation Paper 196, Periodic statements for quoted and listed managed investment products and relief for AQUA products (CP 196) seeks feedback on a number of relevant matters, including:

• allowing issuers to use either Net Asset Value or last market price in preparation of the statement based on the scheme's circumstances
• requiring issuers to provide a clear and prominent explanation of the price used to determine the dollar values on the statement
• requiring issuers to report on the statement whether the scheme has met its investment objective over the last one-year and five-year periods; and
• allowing issuers to not include the termination value of investors' interest in the scheme.

ASIC Commissioner Greg Tanzer said the proposals highlight ASIC’s priority of confident and informed investors.

‘The proposed modifications will facilitate the preparation of periodic statements in a way that will help investors make decisions on a more informed basis,’ Mr Tanzer said.

CP 196 also consults on a proposed class order relating to exchange traded funds (ETFs) on the AQUA market.

Broadly, the proposed class order will provide:

• relevant interest and substantial holding relief;
• material change and significant event disclosure relief; and
• equal treatment relief.

ASIC is seeking feedback on CP 196 by 10 February 2013.

ASIC will consider issuing the class order based on the response to this consultation paper.

Background

The proposed periodic statement modifications will assist issuers of listed and quoted schemes overcome practical difficulty in complying with the obligation in its current form under section 1017D of the Corporations Act.

The proposed ETF relief is currently provided to each issuer on application in respect of each new scheme trading on AQUA. The proposed class order will provide, substantially, the same relief on a permanent basis.

An ETF is an Exchange Traded Fund that is quoted on AQUA. AQUA is a market created by ASX to specifically manage the admission of ETF securities, managed fund products and structured products on the ASX market and to provide access for AQUA product issuers to clearing and settlement services provided by the ASX Group.

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Consultation Paper 196 Periodic statements for quoted and listed managed investment products and relief for AQUA products (CP 196)