Australian Securities and Investments Commission
Corporations Law — Paragraph 601QA(1)(a) — Revocation and Exemption
Pursuant to paragraph 601QA(1)(a) of the Corporations Law (the Law) the Australian Securities and Investments Commission (ASIC) hereby revokes ASIC Class Order [98/58] dated 13 July 1998 with effect from the time immediately before the CLERP Commencement Date.
And pursuant to paragraph 601QA(1)(a) of the Law ASIC hereby exempts, with effect from the CLERP Commencement Date, each person who operates a managed investment scheme of the kind specified in the Schedule from section 601ED of the Law in relation to the operation of that scheme.
SCHEDULE — SCHEMES TO WHICH THIS EXEMPTION APPLIES
A managed investment scheme in relation to which there has at no time been any:
(a) offer of an interest in the scheme for issue or sale ;
(b) invitation to subscribe for or buy an interest in the scheme, or
(c) issue of an interest in the scheme,
made or received in Australia other than by way of :
(d) an offer or invitation made prior to the CLERP Commencement Date which was an excluded offer or excluded invitation (as the case may be) within the meaning of the Law as in force before the CLERP Commencement Date; or
(e) an issue of the kind described in section 1477 of the Law; or
(f) an offer which, assuming at the time that the offer was made that the scheme had been registered and that interests in the scheme were securities, would not have needed disclosure to investors under Part 6D.2 because of section 708 of the Law; or
(g) an issue resulting from an offer of the kind referred to in paragraph (f).
Interpretation
In this instrument “CLERP Commencement Date” means the time at which Schedule 1 of the Corporate Law Economic Reform Program Act 1999 commences.
Dated the 13th day of February 2000
Signed by Brendan Byrne
as delegate of the Australian Securities and Investments Commission
Overview
The Australian Securities and Investments Commission Corporations Law — Paragraph 601QA(1)(a) — Revocation and Exemption legislative instrument, enacted in 2000, was introduced to streamline and update the regulatory framework for managed investment schemes in Australia. The instrument revokes ASIC Class Order [98/58], aligning with the changes brought about by the Corporate Law Economic Reform Program Act 1999, and provides exemptions from certain provisions of the Corporations Law for specified managed investment schemes. The objective of this legislative instrument, as set forth by the Australian Securities and Investments Commission, is to ensure that the regulatory environment is contemporary and efficient, while protecting investors and maintaining market integrity. This instrument was enacted by the Australian Securities and Investments Commission, authorised under the Corporations Law, to facilitate the transition and implementation of the CLERP reforms.
Scope and Application
The Australian Securities and Investments Commission Corporations Law — Paragraph 601QA(1)(a) — Revocation and Exemption legislative instrument, dated the 13th day of February 2000, pertains to the revocation and exemption of certain managed investment schemes from specific sections of the Corporations Law. The instrument revokes ASIC Class Order [98/58] dated 13 July 1998, effective immediately prior to the CLERP Commencement Date, which marks the commencement of Schedule 1 of the Corporate Law Economic Reform Program Act 1999. Additionally, the instrument exempts individuals operating specified managed investment schemes from section 601ED of the Corporations Law, provided there has been no offer, invitation to subscribe, or issue of interests in the scheme in Australia, except under certain conditions detailed in the Schedule. These conditions include offers or invitations made before the CLERP Commencement Date that were excluded under the previous law, issues permitted under section 1477, and offers that would not have required disclosure under Part 6D.2 of the Law due to section 708. This instrument applies nationally and affects all persons operating managed investment schemes within the scope of the exemptions described.
Key Provisions
The legislative instrument in question revokes ASIC Class Order [98/58] dated 13 July 1998, effective immediately prior to the CLERP Commencement Date, as stated in paragraph 601QA(1)(a) of the Corporations Law (the Law). Furthermore, it exempts certain individuals from section 601ED of the Law, specifically those operating a specified type of managed investment scheme, with this exemption taking effect from the same CLERP Commencement Date. The Schedule to the instrument outlines the criteria for these managed investment schemes, specifying that the exemption applies to schemes where there has been no offer, invitation to subscribe, or issue of an interest in the scheme within Australia, except under certain conditions such as offers made before the CLERP Commencement Date that were excluded under previous law, issues described in section 1477, offers exempt from disclosure under Part 6D.2 due to section 708, or issues resulting from such exempt offers.
The Act imposes specific obligations on those operating managed investment schemes, particularly by providing an exemption from certain sections of the Corporations Law. Operators of these schemes must ensure that their operations comply with the conditions set out in the Schedule to qualify for the exemption. This includes verifying that any offers, invitations, or issues related to their schemes fall within the exceptions listed, such as being made prior to the CLERP Commencement Date or being exempt from disclosure requirements under the Corporations Law.
Failure to comply with the provisions of this legislative instrument could result in various legal consequences. Although the instrument itself does not explicitly state the penalties for non-compliance, breaches of the Corporations Law typically attract significant civil or criminal penalties. These could include fines, imprisonment, or both, depending on the nature and severity of the breach. The specific penalties would be determined based on the relevant sections of the Law that the exemption applies to, and the context of the non-compliance.