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Funds and asset management law covers the rules, regulations, and best practices involved in managing investment funds and assets on behalf of individuals, institutional investors, and superannuation funds. Melbourne is a key hub for Australia's finance and investment sectors, with many domestic and international financial services firms operating within the city. The laws governing funds and asset management are comprehensive and focus on protecting investors, ensuring compliance with the regulatory frameworks established by government bodies, and maintaining market integrity.
The field of funds and asset management can be complex given the large sums of money involved and the strict regulatory requirements. Here are some common situations where seeking legal advice could be essential:
Funds and asset management in Melbourne are chiefly governed by a national legal framework, with local implications for Victorian operations. The primary legislation includes the Corporations Act 2001 (Cth), which sets out the rules for establishing and operating funds, and the licensing requirements for fund managers. The Australian Securities and Investments Commission Act 2001 (Cth) provides ASIC with regulatory oversight, including enforcement powers.
Key local considerations for funds and asset managers in Melbourne include compliance with:
Fund managers must also be aware of tax regulations, including Goods and Services Tax (GST) and Managed Investment Trust (MIT) rules which can affect both local and international investors.
A managed fund pools money from multiple investors to be managed by a professional investment manager and can be open to the public or specific investors. A superannuation fund is a special type of managed fund designed specifically for saving for retirement, and these funds are subject to additional regulations and tax advantages.
Funds and asset management are primarily regulated by the Australian Securities and Investments Commission (ASIC). Some funds that deal with retirement savings are also regulated by the Australian Prudential Regulation Authority (APRA).
Yes, anyone wishing to provide funds management services or operate a managed investment scheme in Australia must hold an Australian Financial Services Licence (AFSL) or be otherwise exempt.
Establishing a managed investment scheme involves preparing a constitution and compliance plan, appointing a responsible entity, registering the scheme with ASIC, and complying with ongoing disclosure and operational obligations.
Investor protections include disclosure obligations, ongoing reporting, governance requirements, and compliance programs monitored by ASIC. Investors also have certain rights outlined in the fund’s constitution.
Taxation depends on the fund structure and the investor's status. Generally, income earned by managed funds is subject to taxation under Australian laws. Some funds, such as Managed Investment Trusts, may offer tax advantages for qualifying investors.
Yes, but there may be additional regulatory requirements, including Foreign Investment Review Board (FIRB) approval and compliance with fundraising and tax regulations designed for overseas investors.
Risks include market risk, management risk, liquidity risk, and regulatory changes. It is important to review disclosure documents and seek independent legal and financial advice.
Fund managers must provide a Product Disclosure Statement (PDS) and make ongoing disclosures about performance, fees, and risks to both regulators and investors. Annual and periodic reporting is also required.
A lawyer can advise on regulatory obligations, coordinate responses to ASIC or APRA inquiries, represent you during investigations, and help develop compliance programs to mitigate penalties or enforcement actions.
Several organisations and government bodies provide support and information about funds and asset management in Melbourne:
If you need legal assistance in the area of funds and asset management in Melbourne, consider taking the following steps:
Seeking professional legal advice ensures better compliance, risk management, and strategic decision making for your investment ventures in Melbourne, Australia.
