Policy gets the nod

The Australian Investments and Securities Commission’s (ASIC) policy statement on master funds and wraps has met with cautious approval from Australia’s largest master fund operator.

The Australian Investments and Securities Commission’s (ASIC) policy statement on master funds and wraps has met with cautious approval from Australia’s largest master fund operator.

Head of Asgard’s holding company Sealcorp, Ian Knox, says the recently released policy paper on investor directed portfolio services (IDPS) provides a level playing field across the industry and will help to demystify these vehicles for investors. He says he is supportive of anything that makes master trusts “easier to understand”.

However, he says he is “disappointed” in the requirements for quarterly reporting, saying it will increase costs for operators. Knox would not be drawn on who would wear any future price rise which may result from the requirement, telling Money Management “market practice will have to determine that”.

Meanwhile, dealer-owned master trust group Symetry has welcomed the new pol-icy.

Symetry’s general manager Don Clifton says the policy is “nowhere near as bad as I expected it to be” and expects no detrimental effect on his group’s operations.

Clifton is happy with the $50,000 requirement for start-up master funds and wrap services, saying it will sort the wheat from the chaff.

“Administering these types of services is difficult and complex. I don’t believe everyone can do it and do it well, so having a minimum level of capital and com-petency is a positive,” he says.