Managed funds: changes advisers need to know
A third round of consultation on the Financial Markets Conduct Act regulations has just concluded. Although not yet final, the new regulatory structure is taking shape. The Regulations impact on the offer of equities, debt securities, derivatives, managed funds, DIMS and “other managed investment schemes” (such as property proportionate ownership schemes). In this commentary we focus on key changes for managed funds.
What is a managed fund?
A managed fund is an open ended unit trust where assets are pooled for investors. To fall in the managed fund regulatory category the underlying assets must be liquid - 80% of assets must be either (a) capable of being sold at market value within 10 days or (b) bank deposits. A property unit trust will not fall in this category because of its illiquid land and building assets.
Quick overview
We look below at 4 key parts of the new regulations:
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