Australia fund overhaul to reduce regs ‘burden’

The national regulator has proposed changes to six areas of funds registration and compliance regulation.

The Australian Securities and Investments Commission has proposed efficiency updates to six areas of fund management policy, aiming to reduce regulatory burden for registrants and provide clarity on new funds regimes entering into force, according to a statement by the agency.

The six consultation proposals include a requirement that funds specify the type of assets being invested in when registering with ASIC, in an effort to collect more precise data about the funds industry.

ASIC is also proposing harmonizing the registration process for domestic-focused managed investment funds, and domestic funds which market internationally using the Asia Region Funds Passport. The ARFP is awaiting enactment via legislation, and the regulator has not clarified when this is likely to take place.

The regulator’s draft rules for foreign funds seeking to passport into Australia using the ARFP are also being consulted on by the industry, including a foreign fund’s obligation to notify ASIC in the event of changes to the fund management entity, winding up, and changes to registration status.

Also being reviewed is information on when a fund manager will be granted relief in the case of not meeting a compliance requirement from the regulator. Currently ASIC does not provide information on how it makes these decisions, and seeks to include this in updated guidance.

The consultation closes on the December 8, 2017. The link to the consultation can be found here.