EXPLANATORY STATEMENT
STATUTORY RULES 1984 No. 384
MANAGEMENT AND INVESTMENT COMPANIES REGULATIONS (AMENDMENT)
Issued by the Authority of the Minister of State for Industry, Technology and Commerce.
The Management and Investment Companies Act 1963 established the Management and Investment Companies Licensing Board (the Board) to provide for the licensing of certain management and investment companies (MICs) and to regulate the investment activities of such companies. MICs licensed by the Board may raise capital for investment in certified eligible businesses.
In regulating the investment activities of MICs, the Act stipulates the kinds of investments which MICs may make, one kind being ‘prescribed instruments’. The amending regulation will prescribe that bills of exchange (other than cheques) would be one form of prescribed instruments in which an MIC may properly invest where the Board gives its approval under section 37 of the Act for that investment by notice published in the Commonwealth Gazette.