ASIC has made a new legislative instrument which continues the effect of longstanding ASIC relief set out in ASIC Corporations (Employee redundancy funds relief) Instrument 2015/1150 until 1 October 2021.
An employee redundancy fund pools contributions from employers for employee redundancy payments.
ASIC Corporations (Amendment) Instrument 2018/825 ensures that the existing relief to employee redundancy funds relief from the managed investment and associated provisions in the Corporations Act 2001 (Corporations Act) continues.
This relief is from requirements to:
- hold an Australian financial services (AFS) licence with appropriate authorisations
- register the employee redundancy fund as a managed investment scheme, and
- comply with the managed investment provisions in Chapter 5C of the Corporations Act and other associated provisions, including those relating to Product Disclosure Statements, ongoing disclosure requirements and the anti-hawking provisions.
The extension will allow for consideration of whether employee redundancy funds should continue to technically fall within the managed investment regime of the Corporations Act, particularly in light of proposed law reform to the Fair Work Act 2009 and Fair Work (Registered Organisations) Act 2009 concerning these funds.