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
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
