Relevant Corporations Act provisions
According to CP 173, Part 5D.6 of the Corporations Act sets out the circumstances in which trustee companies can transfer their estate management business to another licensed trustee company.
Transfers are divided into two types:
- voluntary; and
Voluntary transfer involves the total transfer of the transferring company’s estate assets and liabilities.
Compulsory transfer involves the partial transfer of estate assets or liabilities, or a total transfer of them.
Guidance provided by CP 173
CP 173 sets out what information ASIC requires to properly consider an application by a trustee company for a transfer determination.
CP 173 details the information required for:
- an intra-group voluntary transfer determination;
- an arm’s length voluntary transfer determination (involving the transfer of the transferring company’s estate assets and liabilities between two unrelated companies); and
- a compulsory transfer.
ASIC’s guidance in this area will assist trustee companies to prepare and supply relevant material. Such information is necessary so that ASIC can decide whether a transfer is in the best interests of the clients of the transferring company and those of the receiving company.
Commentary on CP 173 closed on 6 March 2012 with release of a final regulatory guide planned for late May 2012/ early June 2012.
For more information on this consultation paper, see the ASIC website.
Source: This article was first published in Thomson Reuters' Accounting & ASIC Compliance Newsletter (Edition 248, March 2012). This monthly newsletter keeps you informed of the latest accounting and ASIC developments through incisive summaries and helpful commentary.