Mulino flags changes to MIS financial resourcing requirements

The Federal Government has signalled the possibility of imposing financial resource requirements on managed investment schemes (MISs).

The Assistant Treasurer and Minister for Financial Services, Daniel Mulino, announced that he had asked the Australian Securities and Investments Commission (ASIC) to consider whether the current financial resource settings are appropriate.

Referencing the collapse of the First Guardian and Shield funds, Mulino said he believed it was disappointing the two products had made it on to investment platforms.

“I welcome the Australian Prudential Regulation Authority (APRA) and the Financial Services Council (FSC) acting to improve the governance and accountability of these entities. The release of the outcomes of APRA’s thematic review of superannuation platforms today is a welcomed development. The Government expects trustees to carefully consider APRA’s findings and swiftly respond,” he said.

Mulino also noted the work being done by the Financial Services Council, and said the Government is also considering what other action needs to be undertaken to ensure the regulatory system remains fit for purpose and ASIC has the appropriate powers to better protect consumers.