Sarah Abood
The FAAA has released its latest submission to Treasury, providing feedback on the governance on managed investment schemes (MISs).
The report titled “FAAA – Consultation – Enhancing oversight and governance of managed investment schemes”, details five key recommendations:
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Reporting on Fund Failures. The FAAA recommends that the Government or ASIC publish information on the reasons, including governance failings that have contributed to the collapse of funds.
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Higher Compliance Plan Standards. The FAAA recommends that the requirements for compliance plans are more clearly defined and the standard is raised.
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Restriction on Related Party Transactions. The FAAA recommends that the Government legislate to prevent related party transactions and related party investments in defined circumstances.
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MIS Reporting. The FAAA recommends that the Government introduce MIS recurrent and real time reporting to ASIC to help in the development of an early warning system for MIS failures.
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Super Switching. The FAAA recommends that the Government introduce a superannuation fund switching alert reporting regime.