Focus: New financial
requirements for responsible entities
Services:
Commercial, Financial Services
Industry Focus:
Financial Services, Property
In brief
Responsible entities (REs) of registered managed investment
schemes will be subject to revised minimum financial standards from
1 November 2012, namely:
- a new net tangible asset (NTA) requirement
- a NTA liquidity requirement
- new compliance measures for ensuring that REs meet their cash
needs requirements, and
- an obligation to obtain an audit opinion on both the NTA and
cash needs requirements.
The changes are contained in a new Class Order (
CO 11/140) and discussed in a draft revised
Regulatory Guide 166. In bringing in these changes, ASIC's
aim is to both increase the financial resources available to an RE
during the life of the scheme, and to provide some assurance that
if the RE fails there are sufficient financial resources for an
orderly transition to a new RE or to wind up the scheme.
