Statutory Compliance Update January 2017

The Australian Prudential Regulation Authority (APRA) and Australian Securities and Investments Commission (ASIC)

The outcomes of an APRA and ASIC review of existing exemptions from the Banking Act 1959 and provisions of the Corporations Act 2001 that apply to charitable investment fundraisers (CIF’s) resulted in changes and a new order effective 1 January 2017. APRA and ASIC use slightly different terminology, but for the purposes of this update, the terms are largely interchangeable. APRA uses the concept of affiliated retail investor while ASIC uses the term retail non-associated client. APRA refers to bodies such as AFSA as RCDF’s (religious charitable development funds), while ASIC refers to them as charitable investment fundraisers CIF’s. In this update, we will use the ASIC terms of retail non-associated clients and CIF’s.

As of 1 July 2017, AFSA will only accept new investment products from associated clients, such as Anglican Parishes and ministry units, Diocesan agencies, Anglican Schools, Anglican affiliated entities, clergy and staff. Unfortunately, these changes in the regulatory framework meant that AFSA was obliged to return funds to investors who did not fall within the parameters of the definition of ‘associated clients’, as contained in the new regulations.

The relief from various legal requirements is conditional and AFSA is required to make investors aware that;