Insights from ASIC surveillance of managed funds

Key points

• ASIC is continuing its surveillance into managed funds;
• Marketing materials across 18 funds to be 'voluntarily' amended;
• Two interim stop orders have been placed on two managed funds for defective target market determinations;
• ASIC will take prompt action and continue to take regulatory action if they find poor conduct.

Managed fund issuers are under the watchful eye of ASIC. As a result of the regulator's ongoing surveillance, the marketing collateral of 18 funds is to be amended and interim stop orders have been imposed on two managed funds.

Following the significant regulatory reforms in October 2021, ASIC also commenced its surveillance of the marketing of managed funds, with a focus on misleading performance and risk disclosures in fund promotional material. Surveillance of managed funds is not new - this program followed ASIC's initial surveillance in 2020 where ASIC told fund managers it wanted products to be 'true to label'.