The initiative has been prompted by recent interpretation of the Managed Investments Act (2000) that has created uncertainty over the rights of pre-emption associated with certain property trust arrangements.
ASX became aware of the issue in mid-March and has worked closely with the sector and with the Australian Securities and Investments Commission (ASIC) since then to address the industry's concern while ensuring that investors can continue to invest in the listed property trust sector with confidence.
It is important to note that the legal issues surrounding this situation are extremely complex and arise from legal opinion that is yet to be tested in court.
In any event, ASX has moved to ensure any relevant trust arrangements are disclosed immediately. Following a period of consultation and review, ASX has today written to approximately 50 property trusts asking that if they have not already done so, they review any agreements to determine their position in relation to this issue, and that they inform the market of their position by the end of this week.
