On Sep. 25, AST ASIC issued employee redundancy fund instrument.
AST ASIC legislative instrument will continue effect of ongoing relief in corporations (employee redundancy funds relief) Instrument 2015/1150, until Oct. 1, 2021.
Employee fund pools contributions from employers for redundancy payment.
Ongoing Relief
Corporations (amendment) instrument 2018/825 ensures relief to employee redundancy funds from the managed investments, in Corporations Act 2001.
Relief from the need to hold AFS licence, register with employee redundancy fund as a managed investment scheme, comply with Chapter 5C of Corp. Act.
Extension will allow consideration whether employee redundancy fund should continue to technically fall in managed investment regime of Corporations Act.
Background
On Sep. 4 2015, ASIC issued Consultation 238 on Remaking ASIC class orderon employee redundancy funds, outlined the proposal to remake [CO 02/314].
ASIC received four submissions from CP 238, all of them supported employee redundancy funds continuing to be exempted from managed investment rule.
In Dec. 2015, ASIC extended interim relief for employee redundancy funds by 24-months to sunset on Oct. 1 2018 on basis that further policy work needed.
Sep. 2021 Relief Extension
On Sep. 9, 2021, AST ASIC announced extension of relief for employee redundancy funds from the managed investments, associated provisions of Corporations Act 2001.
Provides certainty to funds by allowing existing framework to continue whilst Fair Work Laws Amendment (Proper Use of Worker Benefits) Bill 2019 is before AST Parliament.
Extension effected by Corporations (Amendment) Instrument 2021/0767, which amends Instrument 2015/1150 to extend relief from Oct. 1, 2021 to Oct. 1, 2024.
