ASIC proposes increased financial requirements for responsible entities

Introduction

Following the global financial crisis and a number of high profile collapses of managed investment scheme operators, ASIC recently released Consultation Paper 140: Financial Requirements which proposed a number of amendments to the financial requirements applicable to responsible entities – the operators of registered managed investment schemes. The proposals put forward by ASIC are expected to increase (and in some cases significantly increase) the amount of regulatory capital currently held by existing responsible entities. ASIC is accepting responses to Consultation Paper 140 until 15 November 2010.

It is expected that a revised regulatory guide will be available in March 2011, with an implementation date of 1 July 2011. A transition period for existing responsible entities will also be implemented (with compliance required by either 1 July 2012 or 1 July 2013).