On 30 July 2026, the Australian Securities and Investments Commission (ASIC) set out its approach to increasing the net tangible assets (NTA) requirement for responsible entities of registered managed investment schemes following Consultation Paper 388 Net tangible assets requirement for responsible entities (CP 388).
Background
Responsible entities of registered managed investment schemes must meet the financial requirements (including the NTA requirement) in ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647 (ASIC Instrument 2023/647) and as outlined in Regulatory Guide 166 AFS Licensing: Financial requirements (RG 166).
Changes
Having regard to the feedback to CP 388, ASIC reports that it has moved forward with option 1 (increase financial thresholds in line with inflation) and as such:
- Minimum financial thresholds in the NTA requirement will be increased to reflect inflation between June 2013 (when they were last updated) and March 2026.
- Annual indexation will be introduced to ensure the thresholds remain current.
- The increases will apply to responsible entities, operators of IDPS and corporate directors of retail CCIVs.
Timing
The changes will commence on 1 July 2027.
The thresholds applying from this date will include the first annual indexation adjustment.
Updates
ASIC will amend ASIC Instrument 2023/647 and update RG 166 to reflect the changes in the coming months.