The accuracy of the content is not guaranteed. Please rely only on the authorised document. The Australian Securities and Investments Commission (ASIC) has granted an interim exemption from the Law while it conducts a public consultation program into trust funds, established to protect employees’ redundancy entitlements. These funds are known as redundancy funds because they are set up to pay workers’ redundancy payments in the event of company failures. While they may not be primarily investment related, ASIC is considering whether they should be regulated under the managed investments provisions of the Corporations Law. Following consultation with the Federal Treasury Department ASIC will undertake the public consultation to assess the consumer protection issues that arise in relation to redundancy funds. ASIC will particularly consider if members of these schemes need the same protection under the law as those who invest in other managed investment products. A policy proposal paper will be released for public comment later this year. In the meantime, ASIC has granted interim relief for redundancy funds from the requirements of the managed investments provisions of the Corporations Law. Relief has also been granted for those funds which are still governed by the prescribed interest provisions of the law. The relief will expire on 30 June 2001, in order to provide a sufficient period for the industry to comment and for ASIC to finalise its regulatory approach.
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