ASIC remakes five ‘sunsetting’ class orders for managed funds

ASIC has remade five class orders for managed funds that are due to expire (‘sunset’) on 1 April 2024. These class orders are:

[CO 13/1200] – Periodic statements relief for AQUA quoted and listed managed investment scheme managed investment scheme issuer;
[CO 13/1406] – Land holding for primary production schemes;
[CO 13/1409] – Holding assets: Standards for responsible entities;
[CO 13/1410] – Holding assets: Standards for providers of custodial and depository services; and
[CO 13/1621] – Exemption and declaration for the operation of mFund.
The new legislative instruments that replace these class orders are:

ASIC Corporations (Periodic Statement Relief for Quoted Securities) Instrument 2024/14;
ASIC Corporations (Land Holding for Primary Production Schemes) Instrument 2024/15;
ASIC Corporations (Asset Holding Standards for Responsible Entities) Instrument 2024/16;
ASIC Corporations (Custody Standards for Providers of Custodial and Depository Services) Instrument 2024/17; and
ASIC Corporations (mFund) Instrument 2024/18.
The new instruments expire on 1 April 2029, apart from ASIC Corporations (Land Holding for Primary Production Schemes) Instrument 2024/15, which sunsets on 1 October 2024.

On 19 January 2024, ASIC announced our intention to remake the five class orders seeking feedback on the proposal prior to 16 February 2024. A summary of our consultation process is outlined below.

Remaking of the five class orders
We received two submissions in response to our public consultation. The submissions generally supported our proposal to remake the class orders with minor changes. Accordingly, we proceeded to remake each of the class orders in substantially the same form.

For ASIC Class Order [CO 13/1406], we did not receive feedback on remaking the relief. Accordingly, we determined to remake the relief for a shorter period of six months to undertake further consultation with stakeholders on the continued need for this relief.

On ASIC Class Order [CO 13/1200], one of the submissions requested substantive changes. Given the sunsetting date of 1 April 2024, we determined to remake the relief in substantially the same form and will further consult with stakeholders on whether amendments to the relief are required.

View the non-confidential submission.

ASIC will continue to monitor the appropriateness of the new instruments having regard to our regulatory experience, feedback from relevant stakeholders, and outcomes from the Government’s Review of the Regulatory Framework for Managed Investment Schemes.

Under the Legislation Act 2003, all legislative instruments are repealed automatically or ‘sunset’ after 10 years, unless ASIC takes action to remake them.

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

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