ASIC CLASS ORDER [CO 05/0903]
EXPLANATORY STATEMENT
Prepared by the Australian Securities and Investments Commission
Corporations Act 2001
Subsections 601QA(1)(a), 741(1)(a), 951B(1)(a), 1020F(1)(a) and 1020F(1)(c)— Variations
The Australian Securities and Investments Commission (ASIC) makes ASIC Class Order [CO 05/0903] under paragraphs 601QA(1)(a), 741(1)(a), 951B(1)(a), 1020F(1)(a) and 1020F(1)(c) of the Corporations Act 2001 (the Act).
1. Background
Section 601FC(1)(i) of the Corporations Act 2001 (the Act) provides that in exercising its powers and carrying out its duties, the responsible entity of a registered scheme must ensure that scheme property is:
(i) clearly identified as scheme property; and
(ii) held separately from property of the responsible entity and property of any other scheme.
Class Order [CO 98/51] exempts responsible entities of registered managed investment schemes from subsection 601FC(1)(i) of the Act in a number of specified circumstances.
Class Order [04/194] exempts operators of MDA services (MDA operators) from the managed investments provisions in Ch 5C of the Corporations Act 2001 (Act) and the product disclosure provisions in Pt 7.9 of the Act. Managed Discretionary Account services are arrangements that involve a person (the MDA operator) managing a portfolio of assets for a retail client on an individual basis. To have the benefit of this relief, MDA operators must comply with the licensing and conduct provisions in Pts 7.6 and 7.7 of the Act and some additional conduct requirements designed to promote consumer protection.
2. Class Order [CO 05/0903] Relief from duty to separate assets of a managed investment scheme and Managed discretionary accounts — amendments
Class Order [CO 05/0903] effects only one amendment to [CO 98/51], which is to extend the relief set out in paragraph (e) of the Schedule, which was previously due to expire on 30 September 2005, and will now expire on 31 March 2006.
Class Order [CO 05/0903] effects two amendment to [CO 04/194], which are to extend the relief set out in subparagraphs 1.23(b)(v) and 2.10(e), which were previously due to expire on 30 September 2005, and will now expire on 31 March 2006.
3. Consultation
Consultation was not required as the class order is minor or machinery in nature. ASIC did not conduct consultation in respect of this class order.