2.5 The scope of the relief is limited to the terms of the ASIC Instrument

The scope of the relief granted by the ASIC Instrument is limited, in that it applies only to small-scale schemes in which “there are no more than 50 participants”, and “the total amount sought from the issue of scheme interests to participants does not exceed $500,000”. It operates to relieve those schemes from the obligation to comply with the provisions of section 601ED, which would otherwise require that they be established and operated as ASIC registered managed investment schemes.

The relief does not extend to the numerous other provisions of the Act relating to managed investment schemes, including Chapter 7 [Financial services and markets], that are also relevant to the promotion of schemes, and with which promoters must comply.

Promoters are not relieved from having to comply with those provisions of Chapter 7 relating to licensing, conduct, and transfer of title, etc.