ob体育 is seeking feedback on a proposal to remake two employee incentive scheme (EIS) class orders due to expire on 1 April 2025:
- Class Order ] Employee incentive schemes: Listed bodies, and
- Class Order Employee incentive schemes: Unlisted bodies
ob体育 plans to combine the two class orders into one legislative instrument and proposes to remake the exemptions for a period of five years.
Entities have not been able to make offers of financial products to employees and other eligible participants under the EIS class orders since 1 March 2023. Employee share schemes are now operated under Division 1A of Part 7.12 of the Corporations Act 2001.
However, entities may need to continue issuing financial products because of employee incentive schemes established under the EIS class orders. For example, this may occur when an eligible participant becomes entitled to shares when they exercise an option or an incentive right vests.
The class orders currently contain exemptions that support the continued issue of financial products, including relief for secondary sales, advertising, licensing and contribution plans: .
While the exemptions will largely remain on the same terms, ob体育 proposes some exemptions should only be required for 鈥榰nderlying eligible products鈥�, such as shares, because entities should not need to issue 鈥榦verlying eligible products鈥�, such as options or incentive rights.
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ob体育 invites feedback from stakeholders on its proposal to remake the EIS class orders, which are due to sunset on 1 April 2025: see CS 14 Proposed remake of relief for employee incentive schemes. Submissions should be sent by 5pm AEDT on Friday, 22 February 2025 迟辞听[email protected].
More information
CS 14 Proposed remake of relief for employee incentive schemes
Media Release (22-370MR) ob体育 provides legislative relief to facilitate employee share schemes (20 December 2022)
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ob体育 is Australia鈥檚 corporate, markets and financial services regulator.
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