Remaking of Sunsetting Instrument Without Significant Amendments – Australian Securities and Investment Commission
On 18 September 2018 the Australian Securities and Investment Commission (ASIC) remade the above instrument without significant amendments. This instrument was scheduled to sunset on 1 October 2018.
Employee redundancy funds are established to accept contributions from employers in the construction and allied industries, on behalf of employees. Contributions represent prospective redundancy benefits payable to employees upon termination or cessation of their employment, generally for any reason other than misconduct.
ASIC considers employee redundancy funds are likely to meet the definition of a managed investment scheme and a financial product under the Corporations Act 2001 (the Corporations Act), and operators of employee redundancy funds are likely to be subject to the requirements to:
- hold an Australian Financial Services (AFS) licence and appropriate authorisations;
- register the employee redundancy fund as a managed investment scheme; and
- comply with managed investment and associated provisions within the Corporations Act, including product disclosure statement (PDS) and ongoing disclosure requirements, and anti-hawking provisions (collectively, the managed investment and associated provisions).
ASIC Instrument 2015/1150 provides relief to operators of employee redundancy funds from the managed investment and associated provisions of the Corporations Act.
Consistent with Government best practice regulation requirements for sunsetting instruments, ASIC has, after consultation with industry, assessed this instrument as operating effectively and efficiently. Therefore, a Regulation Impact Statement is not required for remaking this instrument without significant amendments.