ASIC Corporations (Amendment) Instrument 2019/900

Administered by Department of the Treasury

Legislation au F2019L01145 Not in force Legislative Instrument

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Explanatory Statement

 

ASIC Corporations (Amendment) Instrument 2019/900

 

This is the Explanatory Statement for ASIC Corporations (Amendment) Instrument 2019/900.

The Explanatory Statement is approved by the Australian Securities and Investments Commission (ASIC).

Summary

1. ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 (Purchase Plan Instrument) and ASIC Class Order [CO 09/425] (now repealed) respectively give effect to ASIC’s current and past policy on share and interest purchase plans. These instruments grant exemptions from regulated disclosure under the Corporations Act 2001 (Act).

2. In transitioning from ASIC’s past policy to its current policy, it was necessary to make consequential amendments to other ASIC class orders and legislative instruments that referred to the now repealed Class Order [CO 09/425].

3.  However, because of an oversight, one intended amendment was missed. ASIC Corporations (Amendment) Instrument 2019/900 (Amendment Instrument) corrects that oversight by making the missed consequential amendment.

Purpose of the instrument

4. The Purchase Plan Instrument and ASIC Corporations (Amendment and Repeal) Instrument 2019/548 (Amendment and Repeal Instrument) were registered on the Federal Register of Legislation on 28 August 2019.

5. The Purchase Plan Instrument remade the relief previously provided by ASIC Class Order [CO 09/425], facilitating the offer of share and interest purchase plans to existing registered holders, who are provided with the opportunity to participate in secondary capital raisings at a discount to the market price without brokerage fees.

6. The Amendment and Repeal Instrument repealed [CO 09/425] and made consequential amendments to other ASIC class orders and legislative instruments to ensure they continued to operate as intended.

7. The Amendment and Repeal Instrument should have made two consequential amendments to ASIC Corporations (Managed investment product consideration) Instrument 2015/847 (Amended Instrument). It only made one amendment, with the second intended amendment being missed.

8. The purpose of the Amendment Instrument is to correct that oversight.

Consultation

9. Consultation was not undertaken in relation to the Amendment Instrument, as the single consequential amendment does not have any impact on the policy settings of the Amended Instrument.

Operation of the instrument

10. The Amendment Instrument makes a consequential change which does not materially affect the policy settings of the Amended Instrument.

11. Schedule 1 to the Amendment Instrument omits and replaces the reference to [CO 09/425] made at subparagraph 7(b) of the Amended Instrument with a reference to the Purchase Plan Instrument.

12. The Amendment Instrument commences the day after it is registered on the Federal Register of Legislation.

Legislative authority

13. The Amendment Instrument is made under subsection 601QA(1) of the Act.

14. Under subsection 33(3) of the Acts Interpretation Act 1901 where an Act confers a power to make an instrument of a legislative character  the power is to be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to amend it.

15. The Amendment Instrument is a disallowable legislative instrument.

Statement of Compatibility with Human Rights 

16. The Explanatory Statement for a disallowable legislative instrument must contain a Statement of Compatibility with Human Rights under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011. A Statement of Compatibility with Human Rights is in the Attachment.


Attachment

Statement of Compatibility with Human Rights

 

This Statement of Compatibility with Human Rights is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.  

ASIC Corporations (Amendment) Instrument 2019/900

Overview

1. ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 and ASIC Class Order [CO 09/425] (now repealed) respectively give effect to ASIC’s current and past policy on share and interest purchase plans.

2. These policies facilitate the offer of share and interest purchase plans to existing registered holders, who are provided with the opportunity to participate in secondary capital raisings at a discount to the market price without brokerage fees. These offers are facilitated by granting disclosure exemptions.

3. In transitioning from ASIC’s past policy to its current policy, it was necessary to make consequential amendments to other ASIC class orders and legislative instruments that referred to the now repealed ASIC Class Order [CO 09/425].

4.  These consequential amendments were made by ASIC Corporations (Amendment and Repeal) Instrument 2019/548. However, because of an oversight, one intended consequential amendment was missed.

5. This instrument corrects that oversight by making the missed amendment.

Assessment of human rights implications

6. This instrument does not engage any of the applicable rights or freedoms.

Conclusion

7. This instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview

The ASIC Corporations (Amendment) Instrument 2019/900 was enacted to correct an oversight in the transition from the Australian Securities and Investments Commission’s (ASIC) past policy to its current policy regarding share and interest purchase plans. These plans, which offer existing registered holders the opportunity to participate in secondary capital raisings at a discount to the market price without brokerage fees, are facilitated by granting disclosure exemptions under the Corporations Act 2001. As part of this transition, consequential amendments were made to various ASIC class orders and legislative instruments through the ASIC Corporations (Amendment and Repeal) Instrument 2019/548. However, one consequential amendment intended for the ASIC Corporations (Managed Investment Product Consideration) Instrument 2015/847 was inadvertently missed. The purpose of this Amendment Instrument is to correct that oversight by making the necessary amendment, thus ensuring the continued smooth operation of these plans. The instrument was approved by ASIC and is a disallowable legislative instrument made under the authority of the Corporations Act 2001.

Scope and Application

The ASIC Corporations (Amendment) Instrument 2019/900 applies to entities and individuals involved in the administration and management of managed investment schemes in Australia, specifically those engaging in share and interest purchase plans. This amendment is consequential in nature, correcting an oversight in the previously issued ASIC Corporations (Amendment and Repeal) Instrument 2019/548, which itself made amendments to various ASIC class orders and legislative instruments to reflect changes in policy regarding share and interest purchase plans. The Amendment Instrument specifically rectifies an unintended omission by amending the ASIC Corporations (Managed Investment Product Consideration) Instrument 2015/847 to ensure it accurately references the new policy instruments. The amendment does not extend beyond these instruments and does not introduce new substantive changes or exemptions; it merely ensures internal consistency within the regulatory framework. This legislative instrument operates under the authority of the Corporations Act 2001 and is a disallowable instrument, subject to the Human Rights (Parliamentary Scrutiny) Act 2011. The amendment does not materially affect the existing policy settings or introduce new rights or freedoms.

Key Provisions

The ASIC Corporations (Amendment) Instrument 2019/900 amends the ASIC Corporations (Managed Investment Product Consideration) Instrument 2015/847 by replacing a reference to the repealed ASIC Class Order [CO 09/425] with a reference to the ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547. This amendment ensures consistency and continuity in the regulatory framework governing managed investment products, specifically addressing share and interest purchase plans. The obligations imposed by the Amendment Instrument on the relevant parties include ensuring that any reference in the ASIC Corporations (Managed Investment Product Consideration) Instrument 2015/847 that previously cited [CO 09/425] at subparagraph 7(b) now correctly references the Purchase Plan Instrument. This change is intended to maintain the integrity and effectiveness of the regulatory regime surrounding share and interest purchase plans, ensuring that disclosures and exemptions align with current policy and statutory requirements. The Amendment Instrument does not introduce new offences or penalties. Instead, it rectifies a previous oversight by ensuring that the regulatory references are accurate and consistent with the current legislative framework. This correction is crucial for the proper administration and enforcement of the regulations concerning share and interest purchase plans, ensuring that all stakeholders comply with the intended regulatory requirements. Failure to adhere to these corrected references could result in non-compliance with the Corporations Act 2001, potentially leading to regulatory action against the affected entities. The instrument is a disallowable legislative instrument, meaning it can be reviewed and disallowed by Parliament. While the instrument itself does not create new offences, its failure to correct the oversight could have resulted in continued non-compliance with statutory obligations, potentially leading to enforcement actions under the Corporations Act 2001. The instrument’s purpose is purely corrective, aiming to align existing regulations with the current policy framework without imposing additional burdens or penalties.

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Area of Law
Corporate Law & Governance
Instrument
Regulation
Concepts
Definitions & Interpretation
Regulatory Standards
Repeal & Amendment

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.