ASIC extends hardship relief for frozen funds
The Australian Securities and Investments Commission (ASIC) has provided hardship relief for frozen funds that are in the process of winding up.
ASIC will facilitate operators of frozen funds making hardship payments to members.
The relief is an extension of that granted since October 2008 to improve investor access funds.
Relief can be provided on hardship grounds (eg, if the member is unable to meet reasonable and immediate family living expenses), compassionate grounds (eg, if that the member needs to meet medical costs for serious illness, funeral expenses or to prevent foreclosure) and permanent incapacity. Relief can also be provided if the member is unemployed for at least three months without other means.
There is a cap on hardship withdrawals for each member of $100,000 each calendar year, and an investor can make up to four hardship withdrawals each calendar year.
AUTHOR
Caroline Munro
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
