ASIC CLASS ORDER [CO 09/702]

EXPLANATORY STATEMENT

Prepared by the Australian Securities and Investments Commission

Corporations Act 2001

The Australian Securities and Investments Commission (ASIC) makes ASIC Class Order [CO 09/702] under paragraph 601QA(1)(b) of the Corporations Act 2001 (the Act).

Paragraph 601QA(1)(b) provides that ASIC may declare that Chapter 5C of the Act applies to a person as if specified provisions were omitted, modified or varied as specified in the declaration.

1. Background

Section 601GC of the Act provides that the constitution of a registered  managed investment scheme may be modified, or repealed and replaced with a new constitution, by special resolution of the members of the scheme.    

ASIC Class Order [CO 05/566]  provides relief to enable a responsible entity of a registered scheme to change the scheme’s constitution by removing a termination clause so as to facilitate the scheme to comply with the  Australian equivalents to the International Financial Reporting Standards.

ASIC Class Order [CO 09/552] provides relief to enable a responsible entity of a registered scheme to change the scheme’s constitution  in certain circumstances, without requiring a special resolution of the members of the scheme.

2. Purpose of the class order

The purpose of ASIC Class Order [CO 09/702] is to ensure that the notional statutory modifications made by Class Orders [CO 05/566] and  [CO 09/552] do not interfere with one another.

3. Operation of the class order

Class Order [CO 09/702] amends Class Order [CO 05/566] by omitting a notional statutory modification which is now made by Class Order [CO 09/552].

4. Consultation

No consultation was undertaken. The amendment is of a minor and machinery nature.