AUSTRALIA: ASIC Releases New Instrument for Buy-Backs for ASX Listed Schemes and Updates Guidance for Scheme Buy-Backs

Thursday December 15 2016

On 15th December 2016, the Australia Securities & Investment Commission (ASIC) released a new legislative instrument regarding on-market buy-backs of ASX-listed schemes, replacing the class order due to expire on 1 April 2018.

ASIC has replaced Class Order [CO 07/422] with the new legislative instrument ASIC Corporations (ASX-listed Schemes On-market Buy-backs) Instrument 2016/1159. Class Order [CO 07/422] has been repealed by ASIC Corporations (Repeal) Instrument 2016/1209.

Regulatory Guide 101 has also been updated to include ASIC`s broader policy on managed investment scheme buy-backs, in addition to our policy on market buy-backs by ASX-listed schemes.

The new instrument and updated regulatory guidance follows a public consultation released 12 October 2016. In Consultation Paper 269, Remaking ASIC class order on managed investment scheme buy-backs and updating related guidance, ASIC sought feedback on its proposals to remake, without significant changes, Class Order [CO 07/422] and on draft updates to Regulatory Guide 101. ASIC did not receive any responses to its consultation.

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