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
BlackRock Australia plans to launch a Bitcoin ETF later this month, wrapping the firm’s US-listed version which is US$85 billion in size.
Financial advisers have expressed concern about the impact including private market exposure is having on their tracking error budget, according to MSCI.
State Street will restrict its membership of global climate alliance Net Zero Asset Managers after the organisation dropped its flagship 2050 goals amid ESG backlash from the US.
Betashares has launched a global shares and a global infrastructure ETF as part of the firm’s strategic expansion strategy to support financial advisers in building more diversified portfolios.
