The Australian Securities & Investments Commission (ASIC) has extended its hardship withdrawals relief for frozen registered managed investment schemes for a further 18 months, allowing responsible entities to continue relying on the relief until 28 February 2027. The relief was otherwise due to cease on 28 August 2025, and the extension is intended to give ASIC time to consider and consult on whether the instrument should lapse or be remade with amendments. The relief, set out in ASIC Corporations (Hardship Withdrawals Relief) Instrument 2020/778, was introduced during the COVID-19 pandemic to facilitate withdrawals for members facing financial hardship where a scheme has suspended withdrawals and stopped issuing new interests. It allows responsible entities to grant hardship withdrawals where a member meets at least one hardship criterion, including urgent financial hardship, unemployment, compassionate grounds or permanent incapacity, and requires responsible entities relying on the relief to notify ASIC and scheme members of their intention to do so. ASIC indicated it has already undertaken targeted consultation and received mixed feedback, and it is now seeking further input on the relief and its conditions by 5pm AEST on 31 October 2025 as part of its work on a potential remake.
Australian Securities & Investments Commission 2025-08-27
Australian Securities & Investments Commission extends hardship withdrawals relief for frozen managed investment schemes to February 2027
The Australian Securities & Investments Commission (ASIC) has extended the hardship withdrawals relief for frozen registered managed investment schemes by 18 months, now effective until 28 February 2027. This extension allows responsible entities to continue facilitating withdrawals for members facing financial hardship under specific criteria. ASIC is conducting further consultations to decide whether to let the relief lapse or amend it.