ASIC Is Remaking Exchange Traded Funds Class Order Relief

The Australia Securities and Investment Commission (ASIC) have released Consultation Paper 374 proposing to remake Class Order [CO 13/721] Relief to facilitate quotation of exchange traded funds on the AQUA Market (Class Order) which is due to expire on 1 April 2024.

The Class Order is an important instrument relied on by exchange traded fund (ETF) issuers to provide necessary relief from certain obligations and requirements under the Corporations Act 2001. In particular, the Class Order provides:

• Equal treatment relief for responsible entities and corporate directors of CCIVs, enabling them to limit redemptions and provide certain information to authorised participants only;