ASIC has remade a legislative instrument modifying requirements related to the pricing of interests in managed investment schemes (other than time-share schemes) registered before 1 October 2013.
ASIC Corporations (Managed investment product consideration) Instrument 2025/629 (ASIC Instrument 2025/629) continues relief previously provided under ASIC Corporations (Managed investment product consideration) Instrument 2015/847 (ASIC Instrument 2015/847), with minor changes to:
- simplify the requirements to document exercises of discretion affecting the pricing of interests and reduce the level of prescription in those provisions, and
- provide that schemes with interests that are quoted on a financial market operated by Cboe Australia Pty Ltd may rely on the relief.
ASIC assessed that this relief is operating effectively and efficiently and continues to form a necessary and useful part of the legislative framework.
The simplified documentation requirements are consistent with those requirements in ASIC Corporations (Discretions for Setting the Issue Price and Withdrawal Price of Interests in Managed Investment Schemes) Instrument 2023/693 (ASIC Instrument 2023/693).
The relief has been extended to schemes with interests quoted on the financial market operated by Cboe Australia Pty Ltd in response to a submission that the instrument should be drafted in a more market-neutral manner.
The new instrument is intended to maintain the relief, so it has ongoing effect without any disruption to the entities that rely on it.
Consultation feedback
ASIC consulted on a proposal to remake the relief in ASIC Instrument 2015/847 in CS 27 Proposed remake relief of instrument for managed investment product consideration. We received three submissions in response to our consultation, two of which were supportive of our proposal. The non-confidential submissions are available on CS 27 together with a summary of the feedback and ASIC’s response.
Background
ASIC Instrument 2025/629 applies to managed investment schemes (other than time-share schemes) registered before 1 October 2013 that have not opted in to rely on ASIC Instrument 2023/693.
The instrument provides certainty and appropriate flexibility to responsible entities of certain registered managed investment schemes about the pricing of interests. This includes how these entities may set the issue price in certain circumstances, and exercise discretions in relation to a formula or method used for determining the issue price or withdrawal amount.
Instrument 2015/847 was due to sunset on 1 October 2025. The relief has been remade for a period of five years.
