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
Funds managers are being urged by financial advisers to improve their “outdated” education and communication about alternative funds as they actively target them towards retail clients.
GAM Investments has appointed Eric Finnell as its managing director for Australia after his predecessor left to take up the CEO role at Global X.
Fidelity International has looked internally to appoint a head of strategic sales and solutions for its Australian division, which is a newly created role for the business.
Lonsec’s deputy CIO Deanne Baker has highlighted what investment tools the firm is harnessing to mitigate the impact of geopolitical risks in its managed account offerings.