ASIC has remade the relief in Class Order [CO 09/425], which was due to sunset on 1 October 2019.
The new instrument, ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547, provides ASX-listed issuers of shares and interests under purchase plans with relief from the requirement to prepare a prospectus or Product Disclosure Statement if certain conditions are met.
The new instrument will continue the effect of the previous instrument while increasing the participation limit (for each registered holder in a 12-month period) from $15,000 to $30,000.
ASIC Commissioner John Price said, ‘We consider that the increase in the purchase plan limit will help ‘mum and dad’ investors participate in discounted fundraisings, and further supports the efficient functioning of capital markets.’
The relief was remade following ASIC’s public consultation, as set out in Consultation Paper 304 Remaking ASIC class order on share and interest purchase plans: [CO 09/425] (CP 304).
ASIC received three non-confidential submissions in response to CP 304 during the consultation period. ASIC’s consideration of these submissions is detailed in Report 629 Response to submissions on CP 304 Remaking ASIC class order on share and interest purchase plans: [CO 09/425] (REP 629).
- ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547
- REP 629
- CP 304
- Regulatory Guide 125 Share and interest purchase plans
Under the Legislation Act 2003, all class orders are repealed automatically or 'sunset' after a period (mostly 10 years) unless ASIC takes action to preserve them.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, which are due to sunset, will be relevant after their sunset date.