ASIC has extended the relief for business introduction services for registered managed investment schemes until 1 April 2025. The relief was due to expire on 1 October 2022.

ASIC considers that the relief remains useful for registered managed investment schemes with fewer than 20 members seeking to raise up to $5 million.

The extended relief clarifies that the design and distribution obligations (DDO) apply to persons who, but for the relief, would otherwise need to comply with the DDO.

ASIC has decided not to extend the same relief to business introduction services for companies on the basis that the crowd-sourced funding regime facilitates flexible and low-cost access to capital for small to medium sized unlisted companies (refer 22-070MR).

ASIC consulted on these amendments to its relief for business introduction services in Consultation Paper 357 Remaking relief for business introduction services: ASIC Instrument 2017/186 (CP 357). ASIC also released Report 723 Response to submissions on CP 357 Remaking relief for business introduction services (REP 723) earlier this year.

ASIC does not, at this stage, intend to remake the relief when it expires on 1 April 2025.

Background

Business introduction services identify potential investors and issuers or sellers by circulating information about investment opportunities.

ASIC Corporations (Business Introduction Services) Instrument 2022/805 gives conditional relief from the financial product disclosure, anti-hawking and advertising requirements in the Corporations Act 2001 that would apply to a person making or calling attention to offers of interests in a registered managed investment scheme through a business introduction service.

ASIC has also updated Regulatory Guide 129 Business introduction and matching services (RG 129) to explain the effect of the relief.