The Australian Securities & Investments Commission (ASIC) published a review of managed fund compliance plans and found widespread deficiencies, with many responsible entities (REs) failing to maintain plans that adequately address core regulatory obligations. ASIC assessed 50 compliance plans covering 1,471 funds and found most did not adequately deal with key requirements under the design and distribution obligation (DDO), internal dispute resolution (IDR) and reportable situations (RS) regimes. Some plans did not address DDO at all, which ASIC said suggests they have not been meaningfully reviewed since 2021. The review participants operate 45% of all registered managed funds and hold 47% of the approximately AUD 2 trillion in registered managed fund sector assets. ASIC called on REs to rapidly remediate gaps, including by using the review’s findings and examples of better practice. It has written to some REs about identified concerns, is investigating others for potential legal breaches, and said it will continue monitoring compliance plan quality beyond the specific obligations covered in this surveillance.
Australian Securities & Investments Commission 2025-06-02
Australian Securities & Investments Commission uncovers widespread compliance plan deficiencies among responsible entities overseeing nearly AUD 1 trillion in managed investments
ASIC's review found major deficiencies in managed fund compliance plans, with many entities not meeting key regulatory obligations. Assessing 50 plans for 1,471 funds, it noted poor adherence to design and distribution obligations, internal dispute resolution, and reportable situations. Some plans lacked reference to design and distribution obligations, showing no meaningful review since 2021. These entities manage 45% of registered funds and 47% of the AUD 2 trillion sector assets. ASIC urged quick remediation, contacted some entities, is investigating legal breaches, and will keep monitoring compliance quality.