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Asset Management in Australia

Asset Management in Australia

Asset management in Australia refers to the set of procedures and laws developed for the protection of financial assets and the investment of such assets in a way that will provide the most suitable return on investment.

Asset management has been focused in the last decade on creating a better legal framework that can encourage large investments that take into consideration the protection of the environment and of vulnerable regions and groups of people.

This is also the case of Australia and our Australian lawyers can provide in-depth information concerning the current legislation in the field.

What is the main regulator of asset management in Australia?

Asset management in Australia is part of the financial industry, which comprises all types of financial institutions, banks, investment funds and management companies and any other financial services operators.

In Australia, the main regulator of this industry is the Australian Securities& Investment Commission (ASIC), which provides the legal framework available for any company or investment fund in the sector.

ASIC is also the institution where a company/fund has to initiate the incorporation procedures.

What is the value of managed funds in Australia?

The law requires that certain categories of investment have to be managed by a management company or by a fund manager, who must have certain characteristics.

In the list below, you can find out the value of such funds measured at the level of December 2022:

  • the managed funds industry accounted for $4,415 billion;
  • this accounted for an increase of 2,4% compared to September 2022;
  • the highest values were measured for the assets managed by resident investment managers, which in December stood at $1,819.998 billion;
  • the 2nd most important financial results were of direct investments of non-resident managers, which accounted for $1,732.691 billion;
  • the 3rd category was the one of foreign source assets managed by resident managers, which accounted for $694.664 billion.

Are there any new regulations for asset managers in Australia?

Yes. Please mind that if you are an asset manager you are required to follow the rules established by the Financial Services Council of Australia.

Since 2022, asset managers have new reporting obligations, and our law firm in Australia can present what these are.

Under the Financial Services Council (FSC) new policy – the Guidance Note No. 44 Climate Risk Disclosure in Investment Management, asset managers are required to provide a set of details concerning the investment to be made.

At the moment, the policy is applied on a voluntary basis and it aims at asset managers who are involved in investments that impact the environment.

The managers are encouraged to report to the investors about any risks associated with certain investments in relation with the climate change. At the same time, it also encourages to promote investments that have a positive impact on climate.

Thus, asset management in Australia also takes into consideration the ways in which large investments can potentially be used as a way to reduce the impact on the environment.

It also promotes the investment and the development of various products which are sustainable and green (they do not use fossil fuels or the usage of such fuels is drastically diminished compared to similar products made in the past).

We invite you to learn more on this subject from our attorneys in Australia. Our team can help you invest in this country and follow the regulations on asset management.

You can rely on our law firm in Australia for full legal representation in the process of registering a legal entity with ASIC, as well as in the process of obtaining various permits and licenses that can be necessary for this industry.