Custodians turn attention to CIVs and MITs

The Australian Custodial Services Association will focus its attention around improving the local funds management sector to increase its global competitiveness in 2017.

Speaking to its 2016: Year in Review report, ACSA said it will specifically focus on the implementation of collective investment vehicles (CIVs) and corporate CIVs - each scheduled to be launched on 1 July 2017.

"The introduction of these two new vehicles brings Australia more closely in-line with a number of other jurisdictions where these types of vehicles are a fairly common structure for collective investment," ACSA said.

The association also said a host of regulatory, tax and operation changes are likely to shape the course of this year's custody industry.

On the tax front, the industry is collaborating on the managed investment trust (MIT) reforms. These are intended to reduce complexity, increase certainty and minimise compliance costs for MITs and their investors. Among others, there will be increased focus on withholding tax (WHT) for newly proposed investment structures and tax on financial arrangements (TOFA).

Under operations, the proposed CHESS replacement, improvements in the standardisation of processing of discount securities and improvements to proxy voting automation are all on the agenda for the association.

ACSA chair David Knights said 2016 was significant for the Australian custody industry. Assets held in custody increased by 1.4% to $2.9 trillion in the half-year to 30 June 2016. Year-end statistics are soon to be released.

On the regulatory and advocacy front, ACSA facilitated the implementation of the new Accounting Standard AASB 1056 for superannuation entities, and rollout of ASIC Regulatory Guide 133 for managed investments and custodial services. The year also marked a movement to T+2 days settlement to improve efficiency of the Australian markets and bring it at par with global standards.

Read more: AustraliaACSAAustralian Custodial Services AssociationAccounting Standard AASBASIC Regulatory GuideDavid KnightsReview
Editor's Choice
DARREN SNYDER
The Bernie Fraser review of industry superannuation fund governance puts the onus of proof back on the government to demonstrate that one-third independent boards are the best way forward.
ALEX BURKE
Russell Investments will sell its actuarial consulting business to a leading global advisory firm.
EMMA RAPAPORT
The Financial Planning Association Conduct Review Commission Disciplinary Panel has expelled financial adviser Darren Tindall and issued a fine of $16,000.
EMMA RAPAPORT
The financial services sector should not be tempted by "shiny new [fintech] toys", and must continue to invest in maintenance of their core technology, says APRA chairman Wayne Byres.
Videos
Brought to you by
26 OCT 2016
Innovation can sometimes come from the most unexpected places. In this case, it came from one of the country's largest insurers, AIA Australia. A few years ago, the company started carving a different ...
Get it Daily
Keep up to date, don't be the last to know! Get the Financial Standard Daily Newsletter.
SUBSCRIBE
Products
Pocket investment guides featuring adviser case studies and a glossary.
Investing trends and strategies from the industry’s thought leaders.
Putting the spotlight on investment products that matter.
Expert Feed
Alex Dunnin
FS ADVICE
Taking the risk out of insurance reform
Dysfunctional arguments Americans have regarding their Affordable Care Act remind us how poorly most people understand insurance. Following ...
Stephen Fay
FS SUPER
Reality and perception of super returns
What matters more, the investment return on your superannuation balance or the how you feel about your return? Which does a member ...
Christopher Page
FS PRIVATE WEALTH
Redefining the family office
While the family office model has traditionally been the preserve of the ultra-rich, this may be changing very soon. Last week, Findex ...
Michelle Baltazar
FS MANAGED ACCOUNTS
When the disruptors are getting disrupted
2017 is going to be another year for the disruptors, including managed accounts providers - but their challengers, too, are not too ...
Featured Profile
Professional Subscription for $295
(inc GST) for 1 year.
SUBSCRIBE
OTHER PUBLICATIONS
FS Advice
The Australian Journal of Financial Planning.
Get the free iPad app
Download the Financial Standard iPad app for FREE.
DOWNLOAD
Link to something 1U7IvCu1