Announcement date
30 March 2022
Link to announcement
https://asic.gov.au/about-asic/news-centre/find-a-media-release/2022-releases/22-070mr-asic-extends-relief-for-business-introduction-services/
Problem being addressed
ASIC Corporations (Repeal and Transitional) Instrument 2017/186 (Instrument) is scheduled to sunset on 1 April 2022. This Instrument provides relief to persons who are involved in a business introduction service from the fundraising (Parts 6D.2 and 6D.3 of the Corporations Act 2001 (the Act)), debenture (Parts 2L.1 to 2L.5 of the Act), financial product disclosure (Part 7.9 of the Act) and the anti-hawking and advertising requirements (section 992A(1) of the Act). A business introduction service connects potential investors and issuers or sellers by circulating information about small to medium sized enterprise investment opportunities.
Proposal
ASIC has decided that:
- on 1 April 2022, the relief in the Instrument will be extended until 1 October 2022, subject to an additional requirement that:
- the relief applies if a person who is relying on the relief on 31 March 2022 provides notice to ASIC by 2 May 2022 if they want to continue relying on the relief after this date; and
- from 1 April 2022, the relief applies if persons who were not relying on the relief on 31 March 2022 have given ASIC notice (known as the Opt-In Notice). The relief does not apply until the Opt-In Notice is given to ASIC; and
- on 1 October 2022, ASIC will confer relief that replaces ASIC Class Order [CO 02/273] to:
- provide that the relief for the offer, issue or recommendation of interests in a managed investment scheme will continue until 1 April 2025, subject to the notification requirement above;
- provide that the relief for the offer, issue or recommendation of Chapter 6D securities (including Chapter 2L debentures) will expire on 1 October 2022; and
- clarify that the design and distribution obligations in Part 7.8A of the Act apply to persons who rely on the relief where they would need to presently comply with the obligations under Part 7.8A of the Act.
Assessed RIS outcome
Sunsetting instrument
Regulatory burden
ASIC estimates that the amendments to the instrument will result in an additional regulatory burden to the affected industry of $12,850 over three years.