The new ASIC Corporations (Managed investment product consideration) Instrument 2015/847 continues to provide certainty and flexibility to responsible entities and members of registered managed investment schemes registered prior to 1 October 2013 in relation to the pricing provisions of their constitutions by continuing the substantive effect of [CO 05/26] with some minor amendments.

ASIC has made ASIC Corporations (Managed investment product consideration) Instrument 2015/847 (Instrument) to replace ASIC Class Order [CO 05/26] Constitutional provisions about the consideration to acquire interests before it was due to expire on 1 October 2015.

The Instrument continues the substantive effect of [CO 05/26] with some minor amendments including:

  • allowing the responsible entity to base the consideration to acquire an interest in AQUA market traded and unitised unlisted schemes on the value of scheme property attributable to a particular class less any liabilities attributable to that class that may be met from scheme property divided by the number of interests on issue in that class;
  • modifying language in [CO 05/26] to reflect that used in section 601GA of  the Corporations Act 2001 (Cth);
  • removing the requirement to inform all existing members that they have a right to request a copy of the document that sets out how the responsible entity will exercise its discretion; an
  • for stapled securities, reflecting the approach in ASIC Class Order [CO 13/655] Provisions about the amount of consideration to acquire interests and withdrawal amounts not covered by ASIC Corporations (Managed Investment product consideration) Instrument 2015/847.

ASIC has also indicated that it will shortly be updating Regulatory Guide 134:  Managed investments: Constitutions to replace references to [CO 05/26] with references to the new Instrument.

See media release dated 1 October 2015 and ASIC Corporations (Repeal) Instrument 2015/846.