The Australian Securities and Investments Commission is looking into updating the requirements of  registered managed investment schemes, to improve transparency and ensure efficient licensing.

ASIC commissioner Greg Tanzer said in a statement: ‘Regulatory Guide 134 (which
concerns IMS) was released in 1998, a time when the managed investments
regime was still in its infancy. The proposed updates factor in
significant developments in the managed investments industry that have
occurred, and the operational policy that has developed, since the guide
was last updated in 2000."

The consultation paper contains proposals about ASIC’s views on the requirements in parts of the
Corporations Act 2001, and how it will apply them in deciding
to register a managed investment scheme.

"One of our three strategic priorities
is to ensure efficient registration and licensing. These proposals also
improve transparency and ensure that responsible entities and their
advisers have sufficient certainty about what we will look for in
reviewing a constitution when deciding whether to register a managed
investment scheme," added Tanzer.

ASIC’s proposed guidance covers the following areas in relation to a registered managed investment scheme: implementation, the consideration to acquire an interest in the scheme, powers of the responsible entity of the scheme, complaints handling for retail clients and wholesale clients, winding up the scheme, the payment of fees to a responsible entity and its rights of indemnity from scheme property, withdrawal rights of members of the scheme, the use of extrinsic material to the constitution; and legal enforceability of the constitution.