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The corporate regulator is seeking feedback on proposed changes to the relief for business introduction services.
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ASIC seeking feedback on proposed changes to business introduction services
27 January 2022
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ASIC’s consultation paper, Remaking relief for business introduction services: ASIC Instrument 2017/186 (CP 357), has launched this week and includes proposals to extend the relief for interests in managed investment schemes to 1 April 2025 and amend the relief to update and clarify that the design and distribution obligations apply to business introduction services.
It also includes proposals to allow the relief for Ch 6D securities to expire, and require persons who rely or cease to rely on the relief from 1 April 2022 to provide notice to ASIC.
“ASIC is proposing that the relief in relation to Ch 6D securities should sunset because of the overlap with the crowd-sourced funding (CSF) regime, which came into effect in September 2017 for eligible public companies and October 2018 for eligible proprietary companies,” a statement from ASIC said.
“The CSF regime also facilitates flexible and low-cost access to capital for small to medium sized unlisted companies and provides adequate protections for retail investors.
“ASIC is of the view that the relief for scheme interests continues to form a necessary and useful part of the legislative framework for managed investment schemes, particularly as these entities recover from the impact of the COVID-19 pandemic.”
Submissions to the consultation paper are due 15 February 2022 with ASIC encouraging all interested stakeholders, “including industry and consumers”, to share their feedback on the proposed changes.
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