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14-232MR ASIC reports on industry implementation of platforms guidance
ASIC today released a report on our review of the implementation of updated Regulatory Guide 148 Platforms that are managed investment schemes (RG 148) by platform operators.
The report reminds platform operators about some important obligations, including:
- management of conflicts of interest to ensure there is appropriate avoidance, management and disclosure in relation to the conflicts inherent in platform structures
- timely breach reporting in accordance with s912D and Regulatory Guide 78 Breach reporting by AFS licensees (RG 78)
- having a clear policy and disclosure addressing the implications for unadvised clients on platforms
- managing investment governance risk, particularly by superannuation trustees and responsible entities that are platform operators, and
- compliance with corporate structure requirements.
Existing platform operators had until 30 June 2014 to comply with the updated RG 148 and a number of related class orders in readiness for new obligations commencing from 1 July 2014. ASIC visited 14 platform operators as part of its review.
ASIC Commissioner Greg Tanzer said, 'Based on our review, we are satisfied that platform operators are taking appropriate steps to ensure compliance with the revised RG 148 requirements.
'The updated requirements in RG 148 and related class orders appear to be broadly well received and implemented by the platforms sector. We continue to work with industry to address any issues they may experience with the new requirements,' Mr Tanzer said.
ASIC's engagement with industry leading up to the implementation date of RG 148 and the related class orders gave ASIC an opportunity to explore any industry concerns with the new requirements and any difficulties industry may have encountered in applying them.
During this process, some platform operators raised concerns about implementation or transitional issues and sought relief from ASIC specific to those issues. Other concerns included the difficulties arising from the different fee disclosure requirements for managed investment products on platforms and superannuation products.
Mr Tanzer said, ‘ASIC will continue to engage with the industry on the few issues identified through this review to help platform operators meet their obligations in the most practical and efficient way.'
Report 408 Review of the implementation of RG148: Platforms that are managed investment schemes (REP 408).
In the 2013–14 financial year, ASIC undertook a project engaging with 14 platform operators (including white labelled platforms) on the implementation of the updated RG 148 and related class orders. Existing platform operators had until 30 June 2014 to comply with updated RG 148 and related class orders.
This followed an earlier project between 2011 and 2013 aimed at ensuring ASIC's policy on platforms covered existing and emerging issues in the industry and culminated in the release of Consultation Paper 176 Review of ASIC policy on platforms: Update to RG 148 (CP 176) and subsequent update of RG 148 in June 2013.