Gatekeepers such as Responsible Entities (RE’s), fund managers and custodians play a crucial role in ensuring the overall health of the financial services industry, and the safe custody of assets is a critical function. Without appropriate safeguards by these asset holders, there is a potential threat to client assets and this reflects on the level of investor trust and confidence which is subsequently placed on them.

Adequate resources and appropriate risk management frameworks are necessary to ensure the safekeeping of assets and related functions are performed satisfactorily.

In June 2017, ASIC published the results of their latest surveillance in Report 531: Review of Compliance with Asset Holding Requirements in Funds Management and Custodial Services (ASIC’s Report).

The focus of the ASIC Report was general compliance with RG 133 and associated ASIC Class Orders Class Order CO 13/1409: Holding Assets: Standards for Responsible Entities and Class Order CO 13/1410: Holding Assets: Standard for Custodial or Depository Service Providers. Since June 2017 ASIC has continued to survey the sector as part of a wider review of the fund and asset management industry within Australia.

This briefing note is designed to provide clarity for RE’s, fund managers and custodians who hold scheme assets and/or custodial property for their clients.

Click here to download the briefing paper.