ASIC is seeking feedback on the proposal to remake the following class orders relating to managed investment schemes that are scheduled to sunset on 1 April 2024:

• ASIC Class Order [CO 13/1200] Periodic statements relief for AQUA quoted and listed managed investment scheme manager
• ASIC Class Order [CO 13/1406] Land holding for primary production schemes
• ASIC Class Order [CO 13/1409] Holding assets: Standards for responsible entities
• ASIC Class Order [CO 13/1410] Holding assets: Standards for providers of custodial and depository services
• ASIC Class Order [CO 13/1621] Exemption and declaration for the operation of mFund

ASIC has assessed that these class orders are generally operating effectively and efficiently and continue to form a necessary and useful part of the legislative framework.

ASIC proposes to remake the class orders for a period of five years. ASIC will continue to monitor the appropriateness of these class orders having regard to our regulatory experience, feedback from relevant stakeholders, and outcomes from the Government’s Review of the Regulatory Framework for Managed Investment Schemes.

Under the Legislation Act 2003, all class orders are repealed automatically, or ‘sunset’, after 10 years, unless ASIC takes action to preserve them.

Providing feedback

ASIC invites feedback on our proposal. Submissions should be sent by 5pm on 16 February 2024 to rri.consultation@asic.gov.au.

Additional information

Feedback can be provided anonymously or using an alias, however, we will not be able to contact you to discuss your feedback if it is submitted in this manner.

Your feedback will not be treated as confidential unless you specifically request that we treat the whole or part of it (such as any personal or financial information) as confidential.

Please refer to mation and your right to complain about breaches of privacy by ASIC.

Background

ASIC Class Order [CO 13/1200] Periodic statements relief for AQUA quoted and listed managed investment scheme manager addresses practical difficulties for issuers in listed or quoted managed investment schemes when preparing a periodic statement for retail investors. These difficulties mainly arise because issuers are unaware of the transaction price at which an investor bought or sold their interest in the scheme on market.

ASIC Class Order [CO 13/1406] Land holding for primary production schemes sets out minimum standards that a responsible entity must meet in relation to the holding of interests in land required for the operation of a registered managed investment scheme to ensure the land holding arrangements enable the scheme to be operated efficiently, honestly and fairly.

ASIC Class Order [CO 13/1409] Holding assets: Standards for responsible entities sets out minimum standards that a responsible entity must meet in relation to the holding of assets or arranging for another person to hold scheme property or assets of a registered managed investment scheme to ensure the assets holding arrangements enable the scheme to be operated efficiently, honestly and fairly. The class order also provides limited relief to responsible entities in certain circumstances where it may not be appropriate to separate assets from those of other persons or schemes (relief for omnibus accounts), subject to requirements to ensure that the interests of members are not put at any material risk of being lost by any pooling arrangements.

ASIC Class Order [CO 13/1410] Holding assets: Standards for providers of custodial and depository services sets out minimum standards for providers of custodial or depository services, as well as requiring that a custodian that engages a sub-custodian to hold custodial property must ensure that it has a written agreement with the sub-custodian that meets specific requirements. The class order also requires that a custodian that enters into an arrangement to provide a custodial or depository service to a retail client must have a written agreement with the client that contains specific provisions.

ASIC Class Order [CO 13/1621] Exemption and declaration for the operation of mFund facilitates the operation of the mFund Settlement Service operated by ASX by permitting a responsible entity to issue an interest in a registered scheme to an acquirer in response to an application submitted electronically through mFund and to rely on an electronic confirmation accompanying the application that the investor has been given a PDS before the application is made.

ASIC is Australia’s corporate, markets and financial services regulator.