Visit our COVID-19 HUB for our latest updates and resources

28.05.2020

News

Special feature – COVID-19 critical questions for fund managers

Fund managers, responsible entities and trustees are juggling a wide array of concerns right now, from the health of their workforces to volatile markets to fast-moving legislative changes.

The 2020 pandemic means fund managers must step back and think both long and short-term about what to do in a moment of crisis like this.

Based on our decades-long experience serving fund managers, we have gathered some questions to serve as a guide as you navigate the current pandemic and beyond. You will find useful resources and practical insights about these questions at our COVID-19 HUB.

We encourage you to contact our funds management lawyers with your queries and for advice on what steps you should take next. We are here to help.


Liquidity and asset valuations

Is your fund liquid? Can your fund sell ordinarily liquid assets? Visit our COVID-19 HUB for more information.


APPLICATIONS, REDEMPTIONS AND DISTRIBUTIONS

Are your fund's asset valuations current? Can you continue to process applications and redemptions? Will there be any impact on your fund's ability to provide distributions or continue to offer a distribution reinvestment plan? Visit our COVID-19 HUB for more information.


ASSET MANAGEMENT AND FUND STRUCTURE

Is your fund compliant with the borrowing covenants under its loan agreements? Can you change your fund's investment strategy? Can you wind up your fund early or otherwise restructure the fund? Visit our COVID-19 HUB for more information.


DISCLOSURE AND REPORTING

Do you need to update your fund's offer document? Does it contain information which is misleading or deceptive? What are your continuous disclosure obligations? Visit our COVID-19 HUB for more information.


COMPLIANCE AND ADMINISTRATION

What 'back-office' issues should you consider? What questions should you ask about the likes of your business continuity plan, transitioning to an electronic environment, and the financial health of your fund's service providers? Visit our COVID-19 HUB for more information.


TRUSTEE, RESPONSIBLE ENTITY AND DIRECTOR DUTIES

What are your trustee, RE and director duties? Do you need investor approval of the decisions you propose to make in relation to your fund? Visit our COVID-19 HUB for more information.


CHALLENGES FOR AFS LICENSEES—TIPS AND TRAPS

Do you have adequate resources? Can you supervise your representatives? Are your compliance procedures adequate? Should you apply to ASIC for relief? Are you having difficulty paying regulatory fees? Have you breached your licence obligations? Visit our COVID-19 HUB for more information.


IS YOUR E-SIGNATURE VALID?

What do you need to know about executing different types of legal documents using e-signatures? What is the safest approach for companies in these COVID-19 times? Visit our COVID-19 HUB for more information.


FUND AND COMPANY MEETINGS—DECISION MAKING IN A PANDEMIC

What types of meetings may be needed? Have the law and governing documents kept up with the times? Are virtual meetings in relation to companies and registered schemes allowed? Visit our COVID-19 HUB for more information.


Authors

Langton Clarke

Langton Clarke

Partner

Sean McMahon

Sean McMahon

Managing Partner

Contact McMahon Clarke

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

Melbourne
T +61 3 9909 1400
A Level 2, 696 Bourke Street, Melbourne Vic 3000