Document ID: chunk:federal_register_of_legislation:F2023L01221:body:0:p7
Version: federal_register_of_legislation:F2023L01221
Segment Type: other
Provision Reference: 
Character Range: 15414–18373

applies to a responsible entity as if provisions of that Chapter were modified or varied by, after subsection 601FC(1), inserting:
 "Exercise of discretion on issue or withdrawal
           (1A) The responsible entity must ensure that the manner in which a discretion affecting determination of the amount of consideration to acquire interests or the terms of any payment or removal of liability arising from withdrawal from the scheme is exercised is as far as practicable:
              (a)  if the discretion relates to working out the value of scheme property—consistently with ordinary commercial practice for valuing property of the relevant kind; and
              (b) if the discretion relates to working out the market price of interests in the scheme which are quoted on a financial market—consistently with ordinary commercial practice for working out the market price of interests of the same kind in relation to an issue of the interests; and
              (c) in either case, consistently with producing a value or price that is reasonably current at the time of the issue or withdrawal.
Documentation of exercise of discretion
           (1B) If a discretion affecting the amount of the consideration to acquire interests or the terms of any payment or removal of liability arising from withdrawal from the scheme is exercised, the responsible entity must:
              (a) only exercise the discretion if it is reasonable to do so; and
              (b) unless the discretion was exercised in accordance with a current written policy—prepare a written explanation of how the discretion was exercised and why such exercise was reasonable.".

7 Disclosure of information about discretions
Part 7.9 of the Act applies in relation to a responsible entity as if Part 7.9 of the Act were modified or varied by, after section 1013DA, inserting:

           "1013DAA Responsible entity discretions about issue and withdrawal

           If a Product Disclosure Statement relates to a managed investment product and the responsible entity of the registered scheme to which the product relates may exercise a discretion referred to in subsection 601FC(1B), the Product Disclosure Statement must include statements to the effect that copies of documents relating to discretions about pricing of interests are available from the responsible entity at no charge.".

8 Application
(1) Sections 5 to 7 only apply to a responsible entity in relation to a managed investment scheme:
           (a)    if it became a registered scheme after 30 September 2013; or
           (b)    in relation to which the responsible entity has:
              (i) at any time before commencement of this instrument published on its website a notice that it will rely on ASIC Class Order [CO 13/655]; or
              (ii) at any time published on its website a notice that it will rely on this instrument.
(2) A notice under paragraph 8(1)(b) cannot be revoked.
(3)  Chapter