ASIC has extended existing relief granted to operators and promoters of employee redundancy funds from the AFS licensing and managed investment provisions of the Corporations Act for a transitional period of 18 months.
The decision facilitates further consultation by ASIC on the framework for the regulation of these funds.
On 30 July 2024, we publicly consulted on our proposal to remake the relief under ASIC Corporations (Employee redundancy funds relief) Instrument 2015/1150 for a period of five years, given it was due to expire on 1 October 2024.
We received four submissions from funds and one submission from an employer association. The funds generally supported the extension of the relief, while the employer association submission did not support extending the relief. Copies of the non-confidential submissions are linked below.
In light of the submissions we received and the growth in both the scale and scope of these funds' activities since relief was initially provided, we consider it appropriate to consult further on the appropriateness and form of any future relief for these funds.
We have extended the relief for an interim period to allow for our further consultation. Our transitional relief is provided under ASIC Corporations (Amendment) Instrument 2024/618. The relief will expire on 1 April 2026.
