Business Law, Employment Law: 27 March 2023
A new regulatory regime for employee share schemes (ESS) commenced on 1 October 2022.
The new regulatory regime for employee share schemes (ESS) in Division 1A of Part 7.12 of the Corporations Act (New Division) commenced on 1 October 2022. The New Division effectively replaces and expands the current ASIC Class Orders 14/1000 Employee incentive schemes: listed bodies and 14/1001 Employee incentive schemes: unlisted bodies (EIS Class Orders).
Under the EIS Class Orders, offers of shares, options and other financial products to employees, directors and other "eligible participants" were conditionally exempted from the usual requirements in relation to the offering of shares and other financial products to retail clients, the financial services licensing and the on-sale restrictions in respect of securities issued without a prospectus under the Corporations Act.