Have your say: PFA to make submission on ASIC consultation paper
Property Funds Association of Australia (PFA) is currently working on a submission that will argue against an ASIC proposal to increase the net tangible assets (NTA) requirement for responsible entities of registered managed investment schemes.
Consultation Paper 388 Net tangible assets requirement for responsible entities (CP 388) proposes three options to change the current NTA requirement set out in ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647 (Instrument 2023/647).
ASIC is also seeking feedback on:
increasing the NTA requirements that apply to other fund operators i.e. operators of investor directed portfolio services (IDPSs) and corporate directors of retail corporate collective investment schemes (CCIVs), and
the NTA requirements for other categories of licensees as this will inform future ASIC work.
ASIC also said: “The NTA requirement aims to align the fund operator’s interests with members and ensure it can meet its operating costs and that money is available to transition the scheme if it fails. The requirement is not designed to prevent business failure or fully compensate investors who suffer loss from significant events.”
Submissions are due by 17 April 2026 and ASIC said it will announce its final position by 31 July 2026.
The PFA supports regulatory measures that will enhance investor protection where it is justified and proportionate. However, the PFA maintains that there is little evidence to justify an increase to the NTA requirements, and particularly where it will raise barriers to entry in the unlisted funds management sector and substantially lessen competition, making it harder for mid-market fund managers and new entrants.
PFA is drafting a submission, and encourages members to provide feedback to be taken into account in its submission. In addition to general comments on the proposals put forward by ASIC, we would appreciate information in respect of the following:
Current NTA position - Data on what the proposed increases would mean in practice based on current NTA holding.
Evidence of inadequacy - The estimated costs of an orderly wind down and the impact on these costs where there are multiple schemes or schemes with increased complexity.
Compliance burden - What steps you would need to take to comply with an increased NTA requirement and the time required to take this steps. Also, whether this would vary depending on the option adopted.
Please provide any feedback by Tuesday 14 April 2026.
We will update PFA members once the submission is completed.