Australian Securities and Investments Commission
Corporations Act 2001 — Paragraph 601QA(1)(a) — Revocation and Exemption
1. Under paragraph 601QA(1)(a) of the Corporations Act 2001 (the “Act”), the Australian Securities and Investments Commission (“ASIC”) hereby revokes Class Order [00/208].
2. Under paragraph 601QA(1)(a) of the Act ASIC exempts each operator of a managed investment scheme from section 601ED of the Act in the case where the only members of the scheme are members who:
(a) have agreed in writing that the scheme is not required to be registered; and
(b) came to hold all their interests in the scheme by:
(i) an issue to them to which section 1477 of the Corporations Law applies (as continued in force by section 1408 of the Act); or
(ii) accepting an offer for issue made before the Effective Date which, assuming the interests in the scheme were securities to which Part 6D.2 of the Act applied at the time the offer was made, would not have needed disclosure to investors because of section 708 of the Act; or
(iii) accepting an offer for issue made on or after the Effective Date which does not need a Product Disclosure Statement.
Interpretation
In this instrument:
“Commencement Date” means the date of commencement of Schedule 1 to the Financial Services Reform Act 2001; and
“Effective Date” means:
(a) for a managed investment scheme in which no interests of the same class were offered before the Commencement Date – the Commencement Date; and
(b) for any other scheme - the date on which the new product disclosure provisions (as defined in section 1438 of the Act) first apply to an offer or issue of interests in the scheme.
Commencement
This instrument takes effect on the Commencement Date.
Dated the 25th day of February 2002
Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission
Overview
The Australian Securities and Investments Commission Corporations Act 2001, enacted by the Parliament of Australia, was introduced to address issues related to corporate governance, financial reporting, and securities markets, aiming to protect investors and the broader market by ensuring transparency and accountability. One specific legislative instrument, F2007B00249, under this Act, involves the revocation and exemption of certain managed investment schemes from registration requirements. The policy objective here is to provide flexibility and reduce unnecessary regulatory burdens for operators of managed investment schemes, provided the members have consented in writing to the scheme not being registered and have acquired their interests under specified conditions. This instrument was designed to streamline compliance processes while maintaining investor protection standards.
Scope and Application
The Australian Securities and Investments Commission Corporations Act 2001, specifically under paragraph 601QA(1)(a), provides the legislative framework for the revocation and exemption of certain provisions in relation to managed investment schemes. The Act applies to the operators of these schemes, particularly those whose members have agreed in writing that registration is unnecessary, and who have acquired their interests under specific conditions, such as through an issue exempt under section 1477 of the Corporations Law or by accepting an offer exempt from disclosure requirements under section 708 of the Act. The Act's jurisdictional reach is national, given that it is a Commonwealth Act, and it applies across Australia. Notably, the Act exempts certain managed investment schemes from registration requirements, contingent upon the outlined conditions being met. The instrument also includes provisions for the instrument’s commencement date, which aligns with the commencement of Schedule 1 to the Financial Services Reform Act 2001. This legislative instrument, dated 25th February 2002, is signed by Brendan Byrne as a delegate of ASIC, indicating its formal adoption and effect.
Key Provisions
The primary operative sections of this legislative instrument involve the revocation of a class order and the exemption of certain managed investment scheme operators from specific registration requirements. Under section 601QA(1)(a) of the Corporations Act 2001, the Australian Securities and Investments Commission (ASIC) revokes Class Order [00/208]. Additionally, ASIC exempts operators of managed investment schemes from the registration requirement under section 601ED if the scheme's members have agreed in writing that registration is not necessary and have acquired their interests under specific conditions. These conditions include the interests being issued under section 1477 of the Corporations Law (as continued in force by section 1408 of the Act), or by accepting an offer for issue that would not require disclosure under section 708 of the Act if made before a certain date, or by accepting an offer for issue that does not require a Product Disclosure Statement if made on or after the Effective Date.
The Act imposes several obligations and requirements on the entities it governs. Operators of managed investment schemes must ensure that their members agree in writing that the scheme does not need to be registered. Furthermore, the scheme's members must have acquired their interests in accordance with the specified conditions outlined in the Act. The conditions include compliance with the provisions of the Corporations Law as continued in force, adherence to the disclosure requirements of section 708 of the Act for offers made before the Effective Date, and compliance with the Product Disclosure Statement requirements for offers made on or after the Effective Date.
There are no explicit offences, penalties, or civil/criminal consequences stated for breach of the provisions in this instrument. However, non-compliance with the Corporations Act 2001 generally can result in various civil and criminal penalties. For instance, breaches of the Act can lead to fines, imprisonment, or both, depending on the severity of the breach. Civil penalties may also be imposed, including pecuniary penalties and compensation orders. The maximum penalties would be determined based on the specific breach and the provisions of the Act that were contravened.