Announcement date
18 March 2024
Link to announcement
ASIC issues new legislative instrument for exchange traded funds | ASIC
Problem being addressed
Under the Legislation Act 2003, Class Order [CO 13/721] was due to sunset on 1 April 2024. CO 13/721 provides relief to facilitate exchange traded funds (ETFs) that are quoted on the ASX AQUA Market or Cboe where the ETF is passively managed and tracks an index.
Proposal
ASIC proposed that CO 13/721 be remade as a new instrument with an expiry date of 1 April 2029. The instrument would also extend the relief in the class order to a broader class of ETFs. These proposals are set out in Consultation Paper 374 – Remaking ASIC class order on exchange traded funds: [CO 13/721].
Assessed Impact Analysis outcome
Sunsetting instrument
Assessment comments
Consistent with Government’s Impact Analysis requirements for sunsetting instruments, ASIC has, after consultation with stakeholders, assessed the instrument is operating effectively and efficiently. Therefore, an Impact Analysis is not required for the remaking of the class order.
Regulatory burden
No net regulatory costs.