Master trusts have been granted a last minute reprieve before they have to become Investor Directed Portfolio Services (IDPS).
All master trusts were supposed to comply with IDPS guidelines by next Wednesday but have now been given a six month extension by the Australian Securities and Investments Commission (ASIC).
ASIC yesterday extended the deadline to comply with Policy Statement 148 to September 1, 2001 to give discretionary master trusts more time to clarify their tax positions in making the transition to an IDPS structure.
ASIC says that the deadline extension followed consultation with industry concerning “possible triggering of capital gains taxation consequences” when member discretionary master funds operating under an approved deed take steps to bring the trust within the boundaries of PS 148.
But there are two points that still need to be adhered to by March 1. They are the need to provide disclosure documents for accessible securities and the provision of quarterly reports.
