´óÏóÊÓƵis seeking feedback from the investment management industry on our proposal to remake the ´óÏóÊÓƵClass Order Relief to facilitate quotation of exchange traded funds on the AQUA (ASX Quoted Assets) Market.

Consultation Paper 374 Remaking ´óÏóÊÓƵClass Order on Exchange Traded Funds: [CO 13/721] sets out ASIC’s proposed amendments to [CO 13/721].

[CO 13/721] affords equal treatment relief for responsible entities and corporate directors (issuers), ongoing disclosure relief, relevant interest relief as well as substantial holding and beneficial trading relief for issuers. The class order is due to expire on 1 April 2024.

´óÏóÊÓƵproposes to continue the relief currently provided in [CO 13/721] with an amendment to provide an extension of the current relief to a broader class of ETFs. This includes all types of quoted managed investment schemes and sub-funds of a corporate collective investment vehicle (CCIV), not limited to those funds which are passively managed and track an index. However, we do not propose to extend the legislative instrument to funds which employ internal market making.

Providing feedback

´óÏóÊÓƵinvites submissions from stakeholders on our proposal. Submissions should be sent by 5pm on 5 January 2024, to im.sunsettingconsultation@asic.gov.au.

Background

Under the Legislation Act 2003, all class orders are repealed automatically or ‘sunset’ after a period (usually 10 years) unless ´óÏóÊÓƵtakes action to preserve them.

´óÏóÊÓƵissued on 15 October 2013. ´óÏóÊÓƵconsiders [CO 13/721] to be operating effectively and efficiently and continues to form a necessary and useful part of the legislative framework.

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´óÏóÊÓƵis Australia’s corporate, markets and financial services regulator.