ASIC has issued Consultation Paper 357 Remaking relief for business introduction services: ASIC Instrument 2017/186 (CP 357) seeking feedback on proposed changes to the existing relief for business introduction services which is due to expire on 1 April 2022.
UPDATE: Relief extended to 1 October 2022 by ASIC Corporations (Amendment) Instrument 2022/0077.
UPDATE: ASIC Corporations (Business Introduction Services) Instrument 2022/805 remakes the relief in ASIC Class Order [CO 02/273] for interests in managed investment schemes until 1 April 2025.
Currently business introduction and matching services have conditional relief from the fundraising, financial product disclosure, hawking and advertising requirements in the Corporations Act 2001 that would apply to a person making or calling attention to offers of securities or interests in a registered managed investment scheme through a business introduction service.
Business introduction services identify potential investors and issuers or sellers by circulating information about investment opportunities. Information is circulated in various ways including through publications (e.g. brochures, bulletins or web platforms) and by holding meetings.
After considering the impact of the Crowd Source Funding regime on the relief, and the introduction of the design and distribution obligations, ASIC proposes to:
• allow the relief for fundraising for Ch 6D securities to expire;
• extend the relief for managed investment scheme interests to 1 April 2025 (but not later); and
• amend the relief to clarify that the design and distribution obligations apply to business introduction services.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
