Released 1 October 2004. Comment closed 30 November 2004.

This Consultation Paper sets out proposals for ongoing class order relief from certain content requirements for the constitution of a registered managed investment scheme. The effect of the proposals is that a responsible entity will not breach s601GA of the Corporations Act 2001 (the Act) if it has a discretion to determine some components of the consideration to acquire, or the amount payable upon withdrawal (withdrawal payment) of an interest in the scheme.

Our interim position on registered managed investment scheme constitutions was issued on 8 July 2004: see ASIC Information Release [IR 04/31] ASIC announces interim position on transaction costs for managed investment scheme constitutions. With the publication of this Consultation Paper we have decided to extend the interim position, which was to expire on 31 December 2004, until 31 March 2005. This will allow enough time to consult and consider the submissions on this Paper. This interim position involves:

• taking a no-action position where the constitution of any existing registered managed investment scheme does not comply with s601GA because components of the consideration to acquire or the withdrawal payment are determined at the discretion of the responsible entity; and
• being prepared to grant interim relief on a case by case basis with respect to the constitutions of new schemes seeking registration that do not comply with s601GA because components of the consideration to acquire or the withdrawal payment are determined at the discretion of the responsible entity.

This Consultation Paper is not in our usual format for consulting on policy proposals. It reflects the discrete and technical nature of the proposed relief.

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