ASIC tightens rules for 'gatekeepers'

financial-services-industry/ASIC/australian-securities-and-investments-commission/cash-flow/

15 November 2012
| By Staff |
image
image
expand image

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."

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 1 day ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 1 day ago

TOP PERFORMING FUNDS