In brief
This year’s budget contained measures related to enhancing the Australian Securities and Investments Commission’s (ASIC) oversight of Australia’s managed investment schemes (MIS) and a commitment to further public consultation on data collection and performance test requirements for superannuation funds.
In depth
The Government will provide AUD 17.8 million over four years to ASIC and other government bodies to strengthen governance, supervision and enforcement of the MIS sector. The measures address concerns expressed by ASIC Chair Joe Longo about ASIC’s limited data collection powers acting as a significant constraint on its effective supervision of the MIS sector.
The Government has also committed to continuing public consultation on proposed new data collection powers for MISs, and in relation to potential changes to the superannuation performance test. These proposed changes are aimed at ensuring the sector is not disincentivised from investing in key areas such as energy and housing and remains fit for purpose.
What does this mean for you?
These measures signal a shift toward data-driven regulatory oversight of the MIS and superannuation sectors, alongside a potential recalibration of the performance test to better accommodate long-term and alternative investments.
Superfunds should prepare for heightened governance and reporting expectations, increased regulatory engagement, and evolving investment settings, while actively engaging in consultations to shape the final framework.
A copy of the Federal Budget papers can be found here.
Shue Wei Wong, Graduate at Law, has contributed to this legal update.