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ARTICLE · 14 NOVEMBER 2012

The time has come - new requirements for responsible entities take effect

DLA Piper Australia
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As foreshadowed in ASIC Class Order 11/1140, new financial requirements nowwill apply to all responsible entities.

AustraliaCorporate/Commercial Law
John Hutchinson
John Hutchinson
Tony Macafee
Tony Macafee
Jiayue Li
Jiayue Li

New financial requirements - all responsible entities
As foreshadowed in Australian Securities and Investments Commission (ASIC) Class Order 11/1140 released in November 2011, new financial requirements applying to all responsible entities have now come into effect.

ASIC updated and clarified the financial requirements that will apply to responsible entities in Class Order 12/1295, which was issued on 25 September 2012.

In summary, the new financial requirements mean that responsible entities must now:

  • Meet increased net tangible assets (NTA) requirements
  • Hold more of their NTA in cash or cash-equivalent assets
  • Prepare more robust cash flow forecasts.

Increased NTA requirements

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