Financial Services Thinking is our monthly wrap-up of financial services regulation and important industry developments. This useful resource helps you keep track of the latest news.
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ASIC's review of a targeted selection of retail managed funds found they did not face serious investor liquidity challenges during the height of COVID-19 market disruption, and their liquidity frameworks were generally adequate.
ASIC conducted the review between June and November 2020. It covered 14 registered funds across three different strategies to identify any potential liquidity issues faced by managed funds and respond if necessary.
ASIC has announced changes to the financial requirements for some types of AFS licensees in relation to the treatment of leased assets. These changes allow certain AFS licensees to include—
Affected AFS licensees should review their financial requirement calculations in light of the changes. The changes have immediate effect.
Contact partner Elliott Stumm or a member of our Funds Management team if you have queries about AFS licence requirements.
Consultation Paper 340 has been issued seeking stakeholder feedback on ASIC's proposed updates to its draft guidance on upcoming breach reporting reforms.
ASIC's draft regulatory guide reflects reforms made to the breach reporting regime under the Financial Sector Reform (Hayne Royal Commission Response) Act. These reforms clarify and strengthen the existing obligation on AFS licensees to self-report certain breaches of the law to ASIC and extend the obligation to credit licensees.
For background information about the breach reporting reforms you can read our article here.