ASIC today released a consultation paper proposing to remake its class orders on non-monetary consideration managed investment schemes, which is currently due to expire (‘sunset’) on 1 April 2017.
ASIC proposes to remake the class orders as, in its view, the class orders are operating effectively and efficiently and continues to form a necessary and useful part of the legislative framework. The fundamental policy principles that underpin the class orders have not changed.
It is proposed that the following class orders will be combined into a single new legislative instrument:
- Class Order [CO 02/210] Interests in film and theatrical ventures, which is due to sunset on 1 April 2017
- Class Order [CO 02/211] Managed investment schemes – interest not for money, which is due to sunset on 1 April 2017, and
- Class Order [CO 02/236] Film investment schemes, which is due to sunset on 1 April 2017.
All three class orders have been combined into a single instrument so that the substantive effect of the relief in each class order is continued beyond the expiration date in a new legislative instrument.
The new instrument will continue the relief currently given by the class orders without significant changes, so that the ongoing effect will be preserved without any disruption to the entities that rely on it.
Consultation Paper 266 Remaking ASIC class order on managed investment schemes: Not for money (CP 266) outlines ASIC's rationale for proposing to remake the instrument.
The draft ASIC instrument, which reflects the amendments proposed in the consultation paper, is available on our website under CP 266.
Submissions on CP 266 are due by 9 September 2016.
Background
Under the Legislation Act 2003, all class orders 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.
All government organisations are responsible for considering whether the legislative instruments they have made that are due to sunset will be relevant after their sunset date.