ASIC CLASS ORDER [05/986]
EXPLANATORY STATEMENT
Prepared by the Australian Securities and Investments Commission
Corporations Act 2001
Paragraphs 601QA(1)(a) and 911A(2)(l) – Variations
The Australian Securities and Investments Commission (ASIC) makes ASIC Class Order [CO 05/986] under paragraphs 601QA(1)(a) and 911A(2)(l) of the Corporations Act 2001 (the Act).
Paragraph 601QA(1)(a) provides that ASIC may exempt a person from a provision in Chapter 5C of the Act.
Paragraph 911A(2)(l) provides that ASIC may exempt a person from the requirement to hold an Australian financial services licence.
- Background
Managed investment schemes, such as “participating property syndicates”, are required to be registered under Chapter 5C of the Act. The operator of the scheme must also hold an Australian financial services licence.
ASIC Class Order [CO 02/239] gives conditional relief, until 30 September 2005, to operators and promoters of participating property syndicates, where investors are able to exercise a significant level of control over the management of their investment, from compliance with Chapter 5C of the Act and from the requirement to hold an Australian financial services licence. The Class Order is made in accordance with ASIC Policy Statement 77 'Property trusts and property syndicates'.
2. The Class Order
ASIC Class Order [05/986] makes only one amendment to [CO 02/239], which is to remove the relief expiry date of 30 September 2005.
Relief in one form or another has been available for participating property syndicates since 1998. There have not been any industry or regulatory developments to suggest that relief should not now be granted on a permanent basis.
3. Consultation
Only limited consultation was made, as the Class Order is only minor or machinery in nature.