New standard for asset managers
The Financial Services Council’s (FSC) Principles of Internal Governance and Asset Stewardship Standard for asset managers, which commenced in January, will aim to strengthen the foundations of public trust in the industry.
The standard would become mandatory for close to 50 FSC asset manager members from 1 July.
The new norm would be also expected to:
- Encourage higher standards of internal governance and stewardship practices
- Provide better information for clients and other stakeholders
- Raise the quality and standing of Australia’s financial services internationally
Apart from addressing the asset stewardship and conflicts of interest, the FSC code would require asset managers to explain policies and practices regarding their investment and organisational approach, internal governance and asset stewardship.
Additionally, the asset managers would be expected to share their explanations publicly.
AllianceBernstein (AB), which produced together with FSC a white paper to mark the industry’s adoption of the new regime, chief executive Jen Driscoll said: “The standard reflects how keenly Australian fund managers understand the importance of ethics and governance in rebuilding and maintaining trust, and how seriously they take the challenge.”
According to FSC chief executive, Sally Loane the new regime set the highest bar in the world for Australian asset managers in terms of their reporting organisational processes and meeting governance responsibilities.
AUTHOR
Oksana Patron
Recommended for you
Selfwealth has provided an update on the status of its scheme implementation deed with Bell Financial Group as well as whether rival bidder Svava remains in the picture.
Magellan Financial Group has reported its first half FY25 results while appointing a new chief financial officer and promoting Sophia Rahmani to chief executive.
Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
Platform Netwealth has reported its financial results for the first half of FY25, reporting an 80 per cent increase in net flows, with its CEO viewing a “huge opportunity” from private assets.
