ASIC releases new instrument for buy-backs for ASX-listed schemes and updates guidance for scheme buy-backs

ASIC has released a new legislative instrument regarding on-market buy-backs of ASX-listed schemes, replacing the class order due to expire (‘sunset’) on 1 April 2018.

ASIC has replaced Class Order [CO 07/422] with the new legislative instrument ASIC Corporations (ASX-listed Schemes On-market Buy-backs) Instrument 2016/1159. Class Order [CO 07/422] has been repealed by ASIC Corporations (Repeal) Instrument 2016/1209.

ASIC has also updated Regulatory Guide 101 Managed investment scheme buy-backs (RG 101) to include ASIC’s broader policy on managed investment scheme buy-backs, in addition to ASIC’s policy on market buy-backs by ASX-listed schemes.

The new instrument and updated regulatory guidance follows a public consultation released 12 October 2016. In Consultation Paper 269, Remaking ASIC class order on managed investment scheme buy-backs and updating related guidance, ASIC sought feedback on its proposals to remake, without significant changes, Class Order [CO 07/422] and on draft updates to Regulatory Guide 101.

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