ASIC consults on risk management guidance
The Australian Securities and Investment Commission (ASIC) has released further regulatory guidance on risk management practices for responsible entities, in the managed fund sector.
"There is currently no detailed guidance on what is required for responsible entities to comply with this obligation, which this consultation paper seeks to addresss," ASIC said.
Their new proposed guidelines were aimed at making responsible entities' risk management practices of an international standard.
In a statement, ASIC said: "The proposals are intended to provide flexibility for responsible entitles to develop and maintain risk management systems that are appropriate for the nature, scale and complexity of their operations".
ASIC wanted there to be minimum risk management practices and procedures, which were also adaptable to changing market conditions.
Those practices should also be effective in identifying and managing risks on an ongoing basis.
The corporate watchdog said it was not imposing new obligations when it came to how to maintain adequate risk management systems, but it was giving more detailed guidelines on how responsible entities could comply with their obligations under the Corporations Act.
The new proposals (in Consultation Paper 263) would build on the existing proposals in Consultation Paper 204, ‘Risk management systems of responsible entities'.
ASIC was seeking feedback on the proposed regulatory guidance. Submissions were due by 1 September 2016.
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