The Australian Securities and Investments Commission (ASIC) has proposed the tightening of rules for some platform operators and responsible entities (REs) of managed investment schemes.
ASIC Commissioner Greg Tanzer said these and similar regulatory moves would ensure that financial sector gatekeepers were held to account.
In its newly released Consultation Paper 194, ASIC has proposed the increase in financial requirements from $5 million to $10 million for REs and platforms that hold property or assets in certain circumstances.
Furthermore, the regulator would require providers to produce 12-month cash flow projections, also doubling the net tangible asset requirement for custodians.
"The financial requirements recognise that there is a degree of risk associated with providing any asset-holding service," Commissioner Tanzer said.
Commissioner Tanzer said both custodial and depository service providers were important gatekeepers in the financial services industry, as they ensured that appropriate processes to authorise transactions were observed and proper records were kept.
"It's important that all providers have the necessary financial resources, experience, systems and controls in place to support their authorisation."
