|Extract from||July 2000|
|Managed Investment Act – Changes to Policy|
|Article by John Mahoney, of Kinneally Mahoney Solicitors|
President Kim Cox, State Secretary John Anderson and QRAMA Legal Adviser
John Mahoney met with two Senior Officers of the ASIC in Sydney on May
24 - Geoff McCarthy, Principal Lawyer Regulatory Policy and Darren
McShane, Director Managed Investments.
purpose of the meeting was to discuss the impact of the MIA on
management rights having particular regard to those issues raised in the
had argued strongly for the ASIC to define “serviced
apartment complex” in a limited way. We sought a definition that
in summary limited the term to self contained units available for
overnight lettings and which are serviced on a daily basis.
arguments were strongly opposed by the ASIC.
It was again pointed out to us that quite deliberately the term
had not been defined – it had been left open so as not to limit the
types of complexes that the MIA would catch.
The ASIC reiterated the position adopted in its policy statement
that typical management rights in holiday complexes up and down the
Queensland coast were clearly caught by the MIA.
maintained our position that in complexes where unit owners were free to
live in their unit, lock it up, let it out through an on-site agent or
utilise an external agent, the MIA should not apply.
Again the ASIC opposed us strongly.
The officers argued that because the “forced sale” provisions
of the MIA had been reworked to the point where the development industry
in particular was content with them, there should be few if any concerns
for managers whose complexes will be subject to this MIA relief
similar fashion, the ASIC strongly opposed any relaxation of the
principle that the new forced sale provisions will not apply where there
has been a sale of any unit in the complex before March 1, 2000.
In those cases, the old forced sale provisions apply. On behalf of QRAMA, John Mahoney is making a further
submission for a further relaxation of that date, there being a number
of purchasers of management rights who bought after the February
announcement by the ASIC that it would relax the forced sale provisions.
That announcement made no mention of the “no sales before March 1,
problem that the management rights industry faces is that the Developers
have largely achieved what they want and we don’t have them supporting
us in seeking to change the ASIC’s policy.
impact on existing management rights
a brighter note, the ASIC showed a preparedness to resolving the
critical issues that face existing managers who quite innocently fall
foul of the MIA and its unintended consequences.
The ASIC is, as part of a review of its policy on the MIA, looking at ways to:
the ASIC makes the policy amendments that were discussed at the Sydney
meeting, most of the industry’s concerns about current managers will be
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