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Thursday 15 December 2016

16-439MR ASIC releases new instrument for buy-backs for ASX-listed schemes and updates guidance for scheme buy-backs

Following public consultation, ASIC has released a new legislative instrument regarding on-market buy-backs of ASX-listed schemes, replacing the class order due to expire ('sunset') on 1 April 2018.

ASIC has replaced Class Order [CO 07/422] with the new legislative instrument ASIC Corporations (ASX-listed Schemes On-market Buy-backs) Instrument 2016/1159. Class Order [CO 07/422] has been repealed by ASIC Corporations (Repeal) Instrument 2016/1209.

We have also updated Regulatory Guide 101 Managed investment scheme buy-backs (RG 101) to include ASIC's broader policy on managed investment scheme buy-backs, in addition to our policy on market buy-backs by ASX-listed schemes.

The new instrument and updated regulatory guidance follows a public consultation released 12 October 2016. In Consultation Paper 269, Remaking ASIC class order on managed investment scheme buy-backs and updating related guidance, ASIC sought feedback on its proposals to remake, without significant changes, Class Order [CO 07/422] and on draft updates to Regulatory Guide 101. ASIC did not receive any responses to its consultation. 

Background

Under the Legislation Act 2003, all class orders sunset after a specified period of time (mostly ten 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.

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Last updated: 30/03/2021 09:33