More time granted for managed investment scheme constitutions

THE Australian Securities and Investments Commission has extended until June 30 interim relief permitting fund managers to provide in certain circumstances estimates of the transaction costs, value of scheme property and other expenses in setting the application and redemption price for interests in registered managed investment schemes. The relief was due to expire on March 31. ASIC last announced it would extend this relief in December 2004. The extension is designed to allow time to analyse the responses submitted to ASIC’s CONSULTATION PAPER ‘Proposed relief for constitutions of managed investment schemes’ and to finalise policy development. Paragraph 601GA(1)(a) of the Corporations Act 2001 as modified by CLASS ORDER [CO 98/52] Relief from the consideration to acquire constitutional requirement, requires a managed investment scheme constitution to make adequate provision for the consideration to acquire an interest in a scheme with only certain defined exceptions that allow the responsible entity to determine the price. ASIC considers that if a provision of a scheme’s constitution allows the responsible entity discretion to determine any part of the issue price or the price paid to a member upon withdrawal, then the constitution does not comply with s601GA. ASIC is in the process of considering what relief might be granted from these requirements. On March 21, ASIO executed an instrument varying 131 instruments that granted relief from section 601GA to certain schemes, so that interim relief that it has already granted remains effective until June 30 rather than March 31.

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