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ASIC Class Order [CO 02/262]

Authoritative Version
CO 02/262 Orders/ASIC Class Orders as amended, taking into account amendments up to ASIC Class Order [CO 07/151]
Administered by: Treasury
Registered 04 Jun 2012
Start Date 25 May 2005
Date of repeal 23 Mar 2017
Repealed by ASIC Corporations (Repeal) Instrument 2017/240

ASIC Class Order [CO 02/262]

Applications to switch managed investment products

This instrument has effect under s1020F(1)(a) of the Corporations Act 2001.

This compilation was prepared on 10 October 2007 taking into account amendments up to [CO 07/151]. See the table at the end of this class order.

Prepared by the Australian Securities and Investments Commission.

Australian Securities and Investments Commission
Corporations Act 2001 — Paragraph 1020F(1)(a) — Exemption

Under paragraph 1020F(1)(a) of the Corporations Act 2001 (the “Act”), the Australian Securities and Investments Commission (“ASIC”) hereby exempts each responsible entity of a registered scheme from sections 1016A and 1016E of the Act in the case of application moneys received:

(a)   from a Holder;

(b)   as a result of an Application; and

(c)   in accordance with an Arrangement,

for as long as and on condition that:

1     Subject to condition 4, the responsible entity does not accept an Application from a Holder unless it believes on reasonable grounds that, at the time the Application was made, the Holder has received a Product Disclosure Statement (the “Statement”) or Short-Form PDS (the “Statement”) for the new managed investment product that contains all the information that would have been required to be in a Statement given at the time of the Application and which:

(a)   describes the Arrangement;

(b)   describes how and when all information required by this instrument will be provided to Holders; and

(c)   contains prominent statements located in proximity to the description of the Arrangement that a Statement for a managed investment product may be updated or replaced from time to time and that a Holder who so requests will be provided free of charge with the most recent Statement for the new managed investment product.

2     The responsible entity keeps records adequate to demonstrate that each Application is dealt with in accordance with the requirements of this instrument and the Act.

3     The responsible entity provides, free of charge to any Holder who requests it, a copy of the Statement (including any Supplementary Product Disclosure Statement (“Supplementary Statement”) or Supplementary Short-Form PDS (Supplementary Statement) supplementing that Statement) for a managed investment product to which the Holder may switch in accordance with an Arrangement.

4     If, at the time a Holder makes an Application, the responsible entity does not believe on reasonable grounds that the Holder has received the most recent Statement for the new managed investment product and every Supplementary Statement that supplements that Statement (the documents which the responsible entity does not believe on reasonable grounds to have been received by the Holder are together the “missing documents”), the responsible entity, as soon as practicable after receiving the Application, must give the Holder the missing documents and do whichever of the following is applicable:

(a)   if none of the changes described in the missing documents is materially adverse from the point of view of a reasonable person deciding as a retail client whether to acquire the new managed investment product, the responsible entity must choose one of the following alternatives:

(i)    issue the new managed investment product to the Holder in accordance with the Application and where there is a right to withdraw in the constitution of the registered scheme, give the applicant a notice that the applicant may immediately make a withdrawal request; or

(ii)   treat the Application as having been withdrawn and leave the current investment in place; or

(b)   if any change described in the missing documents is materially adverse from the point of view of a reasonable person deciding as a retail client whether to acquire the new managed investment product, the responsible entity must choose one of the following alternatives:

(i)    give the Holder one month to withdraw the Application and not accept the Application until the expiration of that period; or

(ii)   treat the Application as having been withdrawn and leave the current investment in place.

Interpretation

In this instrument the following terms have the stated meanings:

Application”: a request from a Holder to a responsible entity pursuant to an Arrangement to switch from one managed investment product issued by the responsible entity to another managed investment product issued by that same responsible entity.

Arrangement”: a written arrangement between the issuer of the managed investment product and a Holder that sets out the circumstances in which Applications may be accepted.  The Product Disclosure Statement for a managed investment product held by a Holder may specify that written arrangement.

Holder”: a person who holds a managed investment product.

new managed investment product”: the managed investment product specified in the Application as the managed investment product to which the Holder wishes to switch.

Short-Form PDS and Supplementary Short-Form PDS have the same meanings as in Division 3A of Part 7.9 of the Act, as notionally inserted by Part 3 of Schedule 10BA of the Corporations Regulations 2001.

switch”: redemption of interests in a registered scheme and reinvestment of the proceeds in interests in another registered scheme where both schemes are operated by the same responsible entity.

Commencement

This instrument takes effect on the commencement of Schedule 1 to the Financial Services Reform Act 2001.

Notes to ASIC Class Order [CO 02/262]

Note 1

ASIC Class Order [CO 02/262] (in force under s1020F(1)(a) of the Corporations Act 2001) as shown in this compilation comprises that Class Order amended as indicated in the tables below.

Table of Instruments

Instrument number

Date of making or FRLI registration

Date of commencement

Application, saving or transitional provisions

[CO 02/262]

3/3/2002 (see F2007B00372)

11/3/2002

 

[CO 07/151]

25/5/2007 (see F2007L01527)

25/5/2007

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Table of Amendments

ad. = added or inserted     am. = amended     rep. = repealed     rs. = repealed and substituted

Provision affected

How affected

Para 1..........................

am. [CO 07/151]

Para 3..........................

am. [CO 07/151]

Para 4..........................

am. [CO 07/151]

Interpretation...............

am. [CO 07/151]