ASIC considers changes to net asset requirements for REs

ASIC is seeking feedback on options for increasing the net tangible assets (NTA) requirement for responsible entities of registered managed investment schemes.

- Eliza Bavin

In addition, ASIC is looking at increasing the NTA requirements that apply to other fund operators, such as operators of investor directed portfolio services (IDPSs) and corporate directors of retail corporate collective investment schemes (CCIVs); and the NTA requirements for other categories of licensees as this will inform future ASIC work.

The last time NTA financial thresholds were amended was in July 2013.

ASIC said now is an appropriate time to review in the wake of the Shield and First Guardian collapses.

"In light of recent scheme collapses, we have focused our review on the NTA requirement for responsible entities (and similar requirements that apply to other fund managers) to ensure that the policy intention of the requirement continues to be upheld," the consultation paper said.