Federal Register of Legislation - Australian Government

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ASIC Class Order [CO 00/0197]

Authoritative Version
CO 00/0197 Orders/ASIC Class Orders as made
This Class Order provides an exemption from the fundraising and managed investment provisions of the Corporations Act 2001 for certain religious, educational, community and other charitable organisations. This ASIC Class Order also revokes ASIC Class Order [CO 98/66].
Administered by: Treasury
General Comments: This Class Order was originally made under section 260MA(1), 601QA(1), 741(1) and 1084(2) of the Corporations Law and is continued in force under section 1399 of the Corporations Act 2001. This Class Order was published in the Australian Securities and Investments Commission Gazette on 04/04/2000.
Registered 13 Feb 2007
Gazetted 04 Apr 2000
Date of repeal 11 Mar 2002
Repealed by ASIC Class Order [CO 02/0184]
Table of contents.

Australian Securities and Investments Commission
Corporations Law — Subsections 260MA(1), 601QA(1), 741(1) and 1084(2) —
Revocation and Exemption

 

Interpretation

For the purposes of this instrument:

 

"charitable body" is a person who is, or a body or fund which is:

 

(a)         exempt from income tax by virtue of sections 50-5 or 50-30 of the Income Tax Assessment Act 1997 or provisions which correspond to them; or

 

(b)        a person, body or fund to whom a gift is an allowable deduction for the purposes of calculating the taxable income of a person making the gift by virtue of section 30-15 Item 1 or 2 of the Income Tax Assessment Act 1997 or provisions which correspond to them; or

(c)         otherwise recognised in law as being constituted for religious, educational, community or other charitable purposes;

"charitable scheme" is an undertaking, scheme or common enterprise in respect of which a charitable body or trustee of a charitable body offers or proposes to offer for issue or sale interests in a managed investment scheme or debentures or both;

 

"CLERP Commencement Date" means the time at which Schedule 1 of the Corporate Law Economic Reform Program Act 1999 commences;

 

Note : the CLERP Commencement Date is expected to be 13 March 2000.

 

"identification statement" is a statement by a charitable body which sets out:

(a)         the identity of the charitable body;

(b)        a brief description and intended purpose of the relevant charitable scheme; and

(c)         the guarantees or promises, if any, made to or proposed to be made to holders of the interests or debentures as the case may be; and

"offer document" is any document which contains an offer for issue or sale of interests or debentures in connection with a charitable scheme.

 


Revocation

 

The Australian Securities and Investments Commission ("ASIC") revokes ASIC Class Order [98/66] dated 13 July 1998 with effect from the time immediately before the CLERP Commencement Date.

Exemption

With effect from the CLERP Commencement Date ASIC exempts a charitable body and an officer, employee, or trustee of a charitable body from:

 

(a)                  Parts 2L.1, 2L.2, 2L.3, 2L.4 and 2L.5 of the Corporations Law (the "Law") pursuant to subsection 260MA(1) of the Law;

 

(b)                  Chapter 5C of the Law pursuant to paragraph 601QA(1)(a) of the Law; and

 

(c)                  Parts 6D.2 and 6D.3 of the Law pursuant to subsection 741(1) of the Law,

 

in relation to securities issued, or proposed to be issued, by the relevant charitable body or trustee of the charitable body, for as long as and on condition that:

 

1.        an identification statement in relation to the charitable body has been registered by ASIC and ASIC has not cancelled the registration;

 

2.        every offer document the preparation of which the charitable body was party to, contains or is accompanied by the following information:

(a)        the identity of the charitable body;

(b)        the terms and conditions of the offer made in connection with the relevant charitable scheme;

(c)        the terms and conditions, if any, under which a person other than the charitable body, or an employee of the charitable body in that capacity, will receive a material benefit in connection with:

(i)                  the promotion of the charitable scheme;

(ii)                administering or managing the assets of the charitable scheme; or

(iii)               giving investment advice in respect of the charitable scheme; and

(d)         a statement to the effect that:

(i)                  investors should be aware that the specified charitable scheme is not subject to the normal requirement to have a disclosure document and be registered or have a trust deed under the Corporations Law;

(ii)                the scheme has not been examined or approved by the Australian Securities and Investments Commission; and

(iii)       the investment is designed for investors who wish to promote the charitable purposes of the relevant charity and for whom the considerations of profit are not of primary relevance in the investment decision;

 

3.         there is no reference in any promotional material or offer document that the charitable scheme has been approved or examined by ASIC ;

 

4.         the charitable body lodges with ASIC, in connection with the identification statement registered by ASIC, further statements or another identification statement the effect of which is to rectify any false or misleading material statement in, or any material omission from, the identification statement, as soon as practicable after the charitable body becomes aware that the identification statement is false or misleading or that there is a material omission; and

 

5.          the charitable body lodges with ASIC:

 

(a)                where the charitable body is required under a law of the Commonwealth, a state or territory to lodge an annual statement of the accounts kept in relation to the charitable scheme with a statutory body or the Crown, a copy of the statement as soon as practicable after the statement is so required to be lodged; and

 

(b)               where the charitable body causes a registered company auditor to audit those accounts at the end of each financial year, a copy of the auditor's report on the accounts within six months after the end of that financial year; and

(c)               where neither (a) nor (b) applies, either:

(i)         where the charitable body prepares or causes to be prepared at the end of each financial year an annual statement of the accounts kept in relation to the charitable scheme, a copy of the statement and a copy of the auditor's report, if any, on the accounts, within six months after the end of each financial year; or

(ii)          a statement which sets out the following sums:

A         the total indebtedness which remains outstanding to holders of debentures issued by the charitable body on 30 June of each year; and

B          the total amount subscribed in relation to interests in a managed investment scheme issued by the charitable body and not yet withdrawn on 30 June of each year;

within six months after 30 June of that year.

Dated the 17th day of February 2000

 

 

 

Signed by Brendan Byrne

as delegate of the Australian Securities and Investments Commission