Australian Securities and Investments Commission
Corporations Law – Subsection 601QA(1) – Exemption and Declaration
Pursuant to paragraph 601QA(1)(a) of the Corporations Law (Law) the Australian Securities and Investments Commission (ASIC) hereby exempts each responsible entity of a time-sharing scheme from paragraph 601FC(1)(j) in relation to that scheme on the condition that, and for so long as, the responsible entity causes each item of scheme property of the scheme to be valued as soon as practicable after the
responsible entity has reasonable grounds to believe that a valuation of that item is in the best interests of members or is necessary for fairness to all members.
And pursuant to paragraph 601QA(1)(b) of the Law ASIC hereby declares that Chapter 5C of the Law applies to each responsible entity of a time-sharing scheme in relation to that scheme as if paragraph 601HA(1)(c) of the Law were modified or varied by inserting the word "valued" the words, "in accordance with the
conditions of any exemption under paragraph 601QA(1)(a) that exempts the responsible entity from paragraph 601FC(1)(j) or, if the responsible entity is not exempt under such exemption,".
Dated this 30th day of November 2000
Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission
Overview
The Australian Securities and Investments Commission Corporations Law, enacted in 2000, was introduced to address the specific needs and regulatory gaps in the oversight of time-sharing schemes. This legislative instrument, F2007B00287, was enacted by the Australian Securities and Investments Commission (ASIC) as a delegate of the relevant Australian legislature, aiming to ensure that responsible entities of time-sharing schemes are held to adequate standards of financial transparency and member protection. The primary policy objective behind this legislation is to mandate that responsible entities of time-sharing schemes ensure that all items of scheme property are valued appropriately, thereby safeguarding the interests of scheme members and promoting fairness. This is achieved by exempting responsible entities from certain compliance requirements under the condition that they value scheme properties in a timely manner when it is in the best interests of the members or necessary for fairness.
Scope and Application
The Australian Securities and Investments Commission Corporations Law, specifically subsection 601QA(1), provides exemptions and declarations relevant to responsible entities of time-sharing schemes. This legislative instrument exempts each responsible entity of a time-sharing scheme from certain statutory requirements, namely paragraph 601FC(1)(j) of the Corporations Law, provided that the responsible entity ensures that each item of scheme property is valued as soon as practicable under specified conditions. This exemption is contingent on the responsible entity having reasonable grounds to believe that such a valuation is in the best interests of the members or necessary for fairness. Furthermore, the Act declares that Chapter 5C of the Corporations Law applies to these responsible entities with a modification that references the conditions of any exemption under paragraph 601QA(1)(a). The geographic and jurisdictional reach of this legislation pertains to entities operating under the Corporations Law within Australia, thus applying nationally across all states and territories. The Act does not explicitly state exclusions or thresholds, but its application is contingent on the specific conditions outlined within the legislative instrument.
Key Provisions
The primary operative sections of the legislation are subsections 601QA(1)(a) and 601QA(1)(b) of the Corporations Law. Subsection 601QA(1)(a) allows the Australian Securities and Investments Commission (ASIC) to exempt each responsible entity of a time-sharing scheme from certain requirements, specifically paragraph 601FC(1)(j), provided that the responsible entity ensures the valuation of each item of scheme property as soon as practicable after having reasonable grounds to believe that such a valuation is necessary for the best interests of the members or for fairness to all members. Subsection 601QA(1)(b) declares that Chapter 5C of the Corporations Law applies to each responsible entity of a time-sharing scheme, with the modification that the term "valued" is included in the conditions of any exemption under subsection 601QA(1)(a).
The obligations imposed on the responsible entities by this legislation are primarily concerned with the timely valuation of scheme property. They must ensure that each item of property within the time-sharing scheme is valued as soon as practicable when it is determined that such a valuation is in the best interests of the members or necessary for fairness to all members. Additionally, they must comply with Chapter 5C of the Corporations Law, which governs the operation and administration of managed investment schemes, with the specified modification related to the valuation requirements.
There are no explicit offences, penalties, or civil/criminal consequences mentioned in this particular legislative instrument. However, the legislation implies that failure to adhere to the requirements could result in regulatory action by ASIC, which might include enforcement actions, fines, or other sanctions under the Corporations Law. The potential penalties would depend on the specific nature and severity of the breach, as outlined in other sections of the Corporations Law.