Rainmaker Information
The $44 billion Listed Investment Companies (LICs) sector is now dwarfed by other comparative segments: Exchange Traded Products (ETPs), Managed Accounts and mFunds.
As recently as 2015, LICs had almost 50% more funds under management (FUM) than ETPs and nearly triple that of managed accounts, according to findings from Rainmaker Information’s latest Wholesale Advantage Report.
In the five years to 30 June 2020, LICs grew 12% p.a. In comparison, ETPs grew 51% p.a., mFunds grew 71% p.a. and managed accounts had the largest growth being 87% p.a.
LICs, unlike ETPs and mFunds, are structured as a company, not a trust. They are also a closed investment, so the pool of capital held in an LIC is capped.
ASIC Releases Regulatory Guide On Product Design And Distribution Obligations Date
11/12/2020
ASIC today released a new regulatory guide on the product design and distribution obligations (RG 274), following extensive consultation.
The design and distribution obligations require firms to design financial products to meet the needs of consumers, and to distribute their products in a more targeted manner. The obligations were passed by Parliament in 2019 following a recommendation of the Financial System Inquiry.
RG 274 addresses demand from industry for ASIC guidance as they prepare for the obligations to take effect on 5 October 2021. This follows a two year transition period and a six month deferral of commencement provided by ASIC due to the impacts of COVID-19.