ASIC recently released a consultation paper on relief for externally administered companies and registered schemes being wound up.
The main purpose of Consultation Paper 223 (Relief for externally administered companies and registered schemes being wound up – RG 174 update) (CP 223) is to consult on some practical improvements that ASIC can make to its policy in order to better achieve a balance between the information needs of shareholders and other users of financial reports (such as members of insolvent registered schemes) and the financial burden imposed on distressed entities by financial reporting costs.
ASIC Commissioner, John Price said, “We want public comments on our proposals to reduce business costs for insolvent or financially distressed companies and registered schemes while recognising the information needs of members and creditors of financially distressed entities. ASIC also wants to ensure that companies that cease being externally administered comply with their financial reporting obligations if they are going to continue to carry on business.”
In particular, ASIC stated that it is consulting on whether it should:
- expand its policy to exempt insolvent registered schemes being wound up from financial reporting;
- expand its policy to exempt public companies from the obligation to hold an AGM if the company has a liquidator appointed; and
- update its guidance on the circumstances in which ASIC will provide individual relief, including narrowing the circumstances in which it gives exemptive relief, and expanding the circumstances in which it gives deferral relief.
Mr Price further stated, “Given that external administrations of companies and the winding up of registered schemes raise competing policy issues, we have prepared a detailed consultation paper to assist companies, members, Australian financial services licensees (including responsible entities), creditors and insolvency practitioners in providing their feedback. We welcome submissions from interested parties and hope to finalise our revised regulatory guide and class order in early 2015.”
A copy of CP 223 is available at the ASIC website. Please see CP 223
We note that submissions on CP 223 close on 20 October 2014.
How Can One Investment Group help?
One Investment Group is the most experienced corporate trustee business in Australia that has worked with numerous managers under stress to provide solutions to assist with the wind down of numerous schemes both registered and unregistered.
If you would like to know more please contact us.
About One Investment Group
One Investment Group was established to provide responsible entity and trustee services to external fund managers. One Investment Group currently owns and operates five entities with Australian Financial Services Licences. These entities are licensed to provide a range of financial services. In total, these entities have over 35 years’ experience of acting in such roles. Each licensed entity’s board has directors selected to cater for the respective trusts which that entity administers.
Since its establishment, One Investment Group has diversified into providing custody, fund administration, registry and taxation services. One Investment Group is now in a unique position in that it is able to provide a complete solution including Responsible Entity/Trustee, Custodian, Registrar and Fund Administrator. Alternatively, One Investment Group is able to provide a single service working alongside external service providers or the existing Responsible Entity/Trustee.