ASIC has released updated Regulatory Guide 49 Employee incentive schemes (RG 49) together with two new class orders to facilitate the offer of a range of financial products under employee incentive schemes. One class order relates to listed bodies [CO 14/1000] and the other to unlisted bodies [CO 14/1001].

RG49 sets out when ASIC will give relief from the disclosure, licensing, advertising, hawking, managed investment scheme, and on-sale provisions of the Corporations Act 2001 for an employee incentive scheme.

It explains:
• who can make offers
• who can receive offers
• what financial products can be offered
• the specific structures that can be used under ASIC’s relief, and
•the general conditions of ASIC’s relief.

Key conditions are that:
• employees have adequate information to assess the value of what they are being offered and to understand the terms and conditions, and
• the employee incentive scheme is not offered for fundraising purposes.