Responsible entities of registered schemes and COVID-19
- Your legal obligations to investment scheme members still apply during market volatility caused by COVID-19.
- ASIC expects responsible entities of managed investment schemes to actively manage scheme liquidity.
- ASIC has powers to grant hardship relief and rolling withdrawal relief on a case-by-case basis.
ASIC reminds responsible entities of registered managed investment schemes about their fundamental duties and legal obligations to members as they face the market volatility, disruption and other challenges associated with COVID-19.
Responsible entities must comply with the law and their general licensee duties. They must also exercise their powers and carry out their duties in the best interests of scheme members.
ASIC expects responsible entities to actively manage scheme liquidity. Should a scheme become non-liquid, ASIC has powers to grant hardship relief and rolling withdrawal relief on a case-by-case basis (see Regulatory Guide 136 Funds Management: Discretionary Powers). Responsible entities should notify ASIC if any registered scheme becomes non-liquid or if redemptions are suspended. Affected responsible entities should email firstname.lastname@example.org.
ASIC may be able to provide registered entities with relief to assist members if a scheme becomes non-liquid. For more information please read ASIC's letter to responsible entities of managed schemes in the current COVID-19 environment.
ASIC is Australia’s corporate, markets and financial services regulator.