23-082MR ASIC consults on remaking ‘sunsetting’ class orders on IDPS and IDPS-like schemes

ASIC has announced that it is seeking feedback on proposals to remake two ‘sunsetting’ class orders that relate to IDPS and IDPS-like schemes.
Under the Legislation Act 2003, all class orders are automatically repealed after a certain period of time, usually 10 years, unless ASIC takes steps to preserve them. The IDPSs are managed investment schemes that offer transactional, custodial, and reporting services, with investors making all investment decisions. CO 13/763 establishes the regulatory framework for IDPSs and exempts them from registering as a managed investment scheme. CO 13/762 modifies the provisions of the Corporations Act 2001 and offers relief to responsible entities from fundraising, financial product disclosure, and managed investment scheme provisions.
ASIC has requested feedback from the operators of IDPS and responsible entities of IDPS-like schemes on the proposed remaking of these class orders. The regulator’s proposals are outlined in Consultation Paper 369 (CP 369) Remaking ASIC class orders on platforms: [CO 13/762] and [CO 13/763].
The two class orders provide relief to IDPSs and IDPS-like schemes, enabling them to tailor the requirements of the Corporations Act 2001 to the nature of the schemes. The class orders will expire on 1 October 2023, if not remade. ASIC considers that the class orders have been effective and efficient and remain a necessary and useful part of the legislative framework.
Therefore, ASIC is inviting stakeholders to submit feedback on proposals to remake the class orders in substantially the same form for the next five years. Submissions are due by 28 April 2023.