Following public consultation, ASIC has released a new legislative instrument on interests not for money schemes, replacing three class orders on show schemes, interests not for money schemes and film investment schemes that were due to expire (‘sunset’).
ASIC has replaced the following class orders with a new legislative instrument:
- Class Order [CO 02/210] Interests in film and theatrical ventures, which was due to sunset on 1 April 2017;
- Class Order [CO 02/211] Managed investment schemes – interest not for money, which was due to sunset on 1 April 2017; and
- Class Order [CO 02/236] Film investment schemes, which was due to sunset on 1 April 2017.
The relief provided under all three class orders has been combined into a single instrument. The relief provided under the class orders has been remade without any fundamental changes so that the effect of the relief provided by the class orders will be preserved without any disruption to those who rely on them. The class orders have been repealed.
We have also updated Regulatory Guide 80 Managed investment schemes: Interests not for money to incorporate Regulatory Guide 19 Film investment schemes (RG 19), as well as reflecting the terms of the new legislative instrument. RG 19 will be revoked.
The new instrument follows a public consultation in August this year under on proposals to remake our class orders on show schemes, interests not for money schemes and film investment schemes (refer 16-251MR). In Consultation Paper 266 Remaking ASIC class orders on managed investment schemes: Not for money (CP 266), ASIC proposed to remake the class orders without fundamental changes.
The report on submissions is attached. This report highlights the key issues from the submissions and ASIC's responses. ASIC received nine non-confidential and two confidential submissions which were all from the grain pool industry. Submissions received were generally supportive of ASIC’s proposal to remake the class orders without fundamentals changes in the form of the draft instrument attached to the consultation paper.
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.