LICs and LITs

LICs and LITs are admitted under the ASX listing rules similarly to listed companies.

Eligibility

LICs and LITs are close-ended structures that are admitted under the ASX Listing Rules. This means that they are restricted by how many new securities they can create, and by how many securities they can cancel on an annual basis. Unlike open-ended ETPs which can accept applications for new units continuously, LICs and LITs have fixed periods in which they can raise new capital, such as through an initial public offering (IPO) or a subsequent capital raising such as a placement or entitlement offer. LICs are public companies, while LITs are trusts that generally take the form of an Australian Managed Investment Scheme (MIS).

Key rules and requirements

LICs and LITs are required to comply with the ASX Listing Rules in the same way as listed companies. The below includes listing rules and guidance notes that apply specifically to these entities, but please note other rules do apply.

Chapter	Section	Name
1	1.3.4	Investment Entity admission NTA Requirements: $15 million NTA
4	S4.10.20	Investment Entity Annual Report requirements
S4.12	Investment Entity NTA requirements: Investment entity must report NTA within 14 days of month end
15	S15.16	Investment Entity management agreements: 5 year term
19	S19.12	Definition of Investment Entity
Guidance Note 15A	Schedule of ASX Listing Fees
Guidance Note 26	Management Agreements