ASIC to review regulation on managed investment fees
The Australian Securities and Investments Commissions (ASIC) is proposing to remake its class order on differential management fees for registered managed investment schemes, and is also seeking feedback on whether it should review its policy on fee negotiation.
ASIC released a consultation paper proposing to remake its class order on managed investment schemes fees, as it was due to expire (sunset) on 1 April 2017.
ASIC was seeking feedback from the financial services sector and final product providers on their proposal to remake ‘Class Order CO 03/217 Differential Fees', without significant changes.
They were also seeking feedback on whether it should review its policy on individual fee negotiation, which only applied to wholesale clients.
ASIC said it would propose to extend the "switching facility relief to managed investment schemes", operated by a related body corporate of the responsible entity, and also remove the "unnecessary relief extended where members transact electronically".
There would not be any disruption to the entities that relied on the class order (or instrument), ASIC said.
ASIC said the class order formed a necessary part of the legislation framework and was operating effectively and efficiently, however, all class orders automatically sunset after a certain time, mostly 10 years.
The review ensured that these legislation instruments (class orders) were kept up to date and remained fit for purpose and relevant, ASIC said.
Submissions were due by 12 July 2016.
Recommended for you
The US$837 billion fixed income manager has created a new head of asset-based finance role amid the rising client demand for asset-based financing and tailored investment solutions.
Platinum Asset Management has rejected a bid from PM Capital to acquire its two listed investment companies.
Money Management understands Natixis Investment Managers is planning to launch its own private asset product for the Australian retail market.
Magellan’s infrastructure funds have reported gains for the second consecutive month, avoiding potential outflows associated with the exit of its sector head Gerald Stack.
