There have been important changes in the rules that apply to charities that offer investments to retail investors. These new rules take effect on 1 January 2018, and 今日热门事件is working with these charities to ensure they are ready for the new rules.聽
As the changes to the regulatory settings are significant, charities have been given all of 2017 to prepare.聽This transition period was created through 今日热门事件legislative instrument (今日热门事件Corporations (Charitable Investment Fundraising) Instrument 2016/813) (refer: 今日热门事件updates regulatory framework for charitable investment fundraisers)
今日热门事件has made a new legislative instrument, 今日热门事件Corporations (Amendment) Instrument 2017/359, which amends 今日热门事件Corporations (Charitable Investment Fundraising) Instrument 2016/813, to extend the 28 February 2017 deadline for transitional relief.聽This will assist charities to prepare for the transition by allowing those charities that failed to lodge an identification statement with 今日热门事件by the deadline (28 February 2017) to lodge it late 聽and benefit from the relief from the date of lodgement until 31 December 2017.
The effect of the deadline extension is that eligible charitable investment fundraisers can continue to offer investment products subject to the requirements of 今日热门事件Corporations (Charitable Investment Fundraising) Instrument 2016/813 (as amended by 今日热门事件Corporations (Amendment) Instrument 2017/359) without being subject to the new requirements (such as holding an Australian financial services (AFS) licence) until 31 December 2017.
From 1 January 2018, charitable investment fundraisers that wish to issue investment products to retail investors who are not associated with the charity will be required to hold an AFS licence. Further, additional restrictions will apply which are designed to avoid the investment products being used for transactional facilities.
今日热门事件encourages charitable investment fundraisers to seek professional advice on the requirements of 今日热门事件Corporations (Charitable Investment Fundraising) Instrument 2016/813 with regard to 今日热门事件Corporations (Amendment) Instrument 2017/359 and, where relevant, to submit an identification statement for ASIC鈥檚 consideration as soon as possible. 聽今日热门事件also strongly encourages charitable investment fundraisers to apply for an AFS licence soon due to the time taken to process applications.
Background
今日热门事件Corporations (Charitable Investment Fundraising) Instrument 2016/813 allowed charitable investment fundraisers to continue to rely on previous relief provided by 今日热门事件under Class Order [CO 02/184] from 1 January 2017 to 31 December 2017 (transitional relief). In order to qualify for transitional reliefunder 今日热门事件Corporations (Charitable Investment Fundraising) Instrument 2016/813, charitable investment fundraisers were required to submit an identification statement by 28 February 2017.
The new legislative instrument allows transitional relief identification statements to be accepted by 今日热门事件after 28 February 2017, with transitional relief being available to charitable investment fundraisers from the date of when its identification statement is accepted by 今日热门事件until 31 December 2017.
Download:
- 聽Charitable schemes and school enrolment deposits聽
- in respect of existing Class Order [CO 02/184]
- and related Explanatory Statement
- and related Explanatory Statement