Regulation Impact Statement Updates

Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.

Share and Interest Purchase Plans Conditional Relief

Aust Gov
3rd September 2019

Remaking sunsetting instrument without significant amendments – Australian Securities and Investments Commission

On 26 August 2019, the Australian Securities and Investments Commission (ASIC) made ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 to replace ASIC Class Order [CO 09/425], which was due to sunset on 1 October 2019.

The regulatory relief facilitates the offer of share and interest purchase plans by entities listed on the Australian Securities Exchange (ASX) to existing registered holders, by not requiring the issue of a disclosure document (prospectus or Product Disclosure Statement) where certain conditions are met. The relief thereby reduces the cost for listed entities to offer purchase plans to retail investors, who are provided with the opportunity to participate in secondary capital raisings at a discount to the market price without brokerage fees.

In remaking the instrument, ASIC has increased the participation limit under the relief from $15,000 to no more than $30,000 worth of shares or interests per 12-month period. This change has been assessed to not have significant impacts and to not give rise to a change in regulatory cost impacts.

Consistent with government best practice regulation requirements for sunsetting instruments, ASIC has, after consultation with industry, assessed the instrument as operating effectively and efficiently. Therefore, a Regulation Impact Statement is not required for remaking this instrument without significant amendments.

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