Specific requirements relating to land used in primary production managed investment schemes under ASIC Corporations (Land Holding for Primary Production Schemes) Instrument 2024/15 will no longer apply from 1 October 2024, with ASIC opting to allow the instrument to expire (‘sunset’).

The instrument imposed minimum standards that a responsible entity must meet in relation to the holding of certain interests in land for certain types of registered managed investment schemes.

Responsible entities remain subject to the obligations under Chapter 5C of the Corporations Act 2001, including the obligation to act honestly, exercise reasonable care and diligence, act in the best interests of members, and ensure that scheme property is clearly identified, held separately and valued at regular intervals.

ASIC has decided that the specific requirements for primary production schemes covered by this instrument are no longer necessary. ASIC’s decision follows a period of consultation, which opened on 8 July 2024. We sought feedback on whether the instrument still forms a necessary and useful part of the legislative framework, and whether standards set out in the instrument remain appropriate to ensure effectiveness.

We did not receive submissions to our consultation. In view of the lack of support for the continued operation of the instrument, we propose to allow the instrument to sunset on 1 October 2024.

ASIC is Australia’s corporate, markets and financial services regulator.