ASIC
smooths transition for responsible entities to implement new tax system for
managed investment trusts
ASIC has granted relief to assist responsible entities of registered
schemes to allow them to make changes to their constitutions without automatically
holding a members’ meeting.
The relief will assist responsible entities to smoothly implement the
new tax system for managed investments trusts should they make the choice to do
so. The new system was enacted on 5 May 2016.
In order to rely on the relief, responsible entities will need to post a
statement on their website explaining that they intend to amend the
constitution, the reasons for this and the effect of the amendments.
The
statement will also need to explain that members can make a request within
seven (7) days that a meeting be called and give an email address for members
to make this request. If five per cent (5%) or more of the total number of
members request a meeting within seven days of the statement being posted on
the website, a members’ meeting will be required to approve the amendments. If
no members’ meeting is required after seven days since the statement was posted
on the website, responsible entities can make the amendments without the need
for member approval.
ASIC is currently drafting an instrument to give effect to this relief
and intends to release it on or before 22 June 2016. This relief will reduce
uncertainty and costs associated with the requirements that apply under the
Corporations Act in relation to making amendments to the constitution of a
registered scheme and to allow those responsible entities who wish to elect
into and implement the new taxation regime for the 2015-2016 income year to do
so.
In preparation for this instrument becoming effective, responsible
entities wanting to implement the new tax system for managed investment trusts
for the 2015-2016 income year should consider (1) drafting changes to the
constitution (2) drafting the statement that will need to be placed on the
website and (3) undertaking internal approval procedures.
Under the instrument, responsible entities will also be granted relief
from the duty to treat members who hold interests of the same class equally to
the extent that it prevents an attribution being made in accordance with the
requirements under the new tax system.
On 8 June 2016, ASIC announced a decision to refine the form of the
relief that will apply to registered wholesale schemes.
Responsible entities of registered schemes where all interests are held
by wholesale clients will not need to publish such a statement on their website
where they have taken reasonable steps to consult with each member before
amending the constitution. Taking reasonable steps, can include speaking with
the members or emailing them. Responsible entities of wholesale schemes can
consult with members prior to ASIC’s instrument becoming effective.
All other schemes will still need to post such a statement on their
website. Responsible entities can do this prior to ASIC’s instrument becoming
effective.
For further information, contact Nathan Buckley - Partner at G&B Lawyers on M: 0411 067 367 or E: nbuckley@gandblawyers.com.au
G&B Lawyers
Office: Suite 1, Level 1, 229 Macquarie Street, Sydney, NSW 2000
Mail: GPO Box 1849, Sydney, NSW 2001
M: 0481 287 528
W: www.gandblawyers.com.au
No comments:
Post a Comment