The original Class Order, [CO 02/273] Business introduction and matching services, gave conditional relief from the fundraising, financial product disclosure, hawking and advertising requirements in the Corporations Act 2001 that would apply to a person making or calling attention to offers of securities or interests in a registered managed investment scheme through a business introduction service.
The relief provided under ASIC Corporations (Repeal and Transitional) Instrument 2017/186, which preserves the effect of CO 02/273, is due to expire on 1 April 2022.
Consultation Paper 357 Remaking relief for business introduction services: ASIC Instrument 2017/186 (CP 357) includes proposals to:
- Extend the relief for interests in managed investment schemes to 1 April 2025
- Amend the relief to update and clarify that the design and distribution obligations apply to business introduction services
- Allow the relief for Ch 6D securities to expire
- Require persons who rely or cease to rely on the relief from 1 April 2022 to provide notice to ASIC.
ASIC is proposing that the relief in relation to Ch 6D securities should sunset because of the overlap with the crowd-sourced funding (CSF) regime, which came into effect in September 2017 for eligible public companies and October 2018 for eligible proprietary companies. The CSF regime also facilitates flexible and low-cost access to capital for small- to medium-sized unlisted companies and provides adequate protections for retail investors.
ASIC is of the view that the relief for scheme interests continues to form a necessary and useful part of the legislative framework for managed investment schemes, particularly as these entities recover from the impact of the COVID-19 pandemic.
ASIC is seeking feedback on CP 357 from all interested stakeholders including industry and consumers. Submissions are due by 15 February 2022.
