Read our CCIV Guide for the latest insights on the new regime



Financial Services Thinking – Issue 13

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.

You're welcome to share Financial Services Thinking with your friends and colleagues, and we value your feedback.

Review finds retail managed funds responded well to COVID-19 challenges

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 allows certain AFS licensees to use lease assets to satisfy their licence financial requirements

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—

  • where the licensee is a lessee, a right-of-use asset in the calculation of their net tangible assets
  • where the right-of-use asset is a current asset, adjusted surplus liquid funds and surplus liquid funds.

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Consultation on draft guidance on breach reporting reforms

Consultation Paper 340 has been issued seeking stakeholder feedback on ASIC's proposed updates to its draft guidance on upcoming breach reporting reforms.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.


Emma Donaghue

Emma Donaghue


Elliott Stumm

Elliott Stumm


Contact McMahon Clarke

T +61 7 3239 2900
A Level 7, 100 Creek Street, Brisbane Qld 4000