Platforms that are management investment schemes (platforms) are investor directed portfolio services (IDPS) and IDPS-like schemes.
IDPSs are unregistered managed investment schemes (unregistered schemes) for holding and dealing with one or more investments selected by investors. They are managed investment schemes because investors have the expectation of cost savings (e.g. through the netting of transactions or the pooling of funds to acquire investments) or access to investments that would not otherwise be available to them.
IDPS-like schemes operate similarly to IDPSs. Investment decisions are generally made in accordance with specific member instructions, but they are registered schemes.
RG 148 provides information on our regulation of platforms.
In 2014, ASIC published a review report on platform operators’ implementation of Regulatory Guide 148 Platforms that are managed investment schemes and nominee and custody services (RG 148) requirements. For more information see Report 408 Review of the implementation of RG 148: Platforms that are managed investment schemes (REP 408).
Relief for platform operators
Platform operators must generally be a public company that holds an Australian financial services (AFS) licence authorising the provision of the financial service. ASIC provides conditional relief to platform operators from certain obligations under the Corporations Act in:
- Class Order [CO 13/763] Investor directed portfolio services – This gives relief to IDPSs from the requirement to be registered as a managed investment scheme. To rely on the relief, the IDPS must have certain features and the operator must comply with certain conditions set out in the instrument
- Class Order [CO 13/762] Investor directed portfolio services provided through a registered managed investment scheme – This gives relief to responsible entities of IDPS-like schemes from certain managed investment scheme, fundraising and financial product disclosure obligations. To rely on the relief, the responsible entity must comply with certain conditions set out in the instrument.
Platform operators must comply with the financial requirements set out in Class Order [CO 13/760] Financial requirements for responsible entities and operators of investor directed portfolio service.