Australia: Tightening the Belt – ASIC Consults on NTA

In brief

The Australian Securities and Investments Commission (ASIC) has released Consultation Paper 388 Net tangible assets requirement for responsible entities (CP 388), seeking feedback on options to increase net tangible assets (NTA) required under ASIC Instrument 2023/647.

Released amid heightened regulatory focus on governance and resilience in the managed funds sector, ASIC’s proposals affect responsible entities, investor directed portfolio service (IDPS) operators and directors of retail corporate collective investment vehicles (CCIVs), and may also inform reforms for other licensees.

Submissions are due by 17 April 2026. ASIC intends to release its position by 31 July 2026 and proposes a six-month transition period if proposals are implemented.

The proposals have significant ramifications for licensees, including potential capital uplift and impacts on scheme and custody structures, competition and fees.

* * * * *

Nicholas Langsworth, Associate, and Sergey Shumakov, Trainee, have contributed to this legal update.

ACCESS FULL ALERT