Funds management is one of the most dynamic components of the Australian financial services industry.

We are passionate about assisting you to achieve your commercial objectives in regards to Operating a Fund (retail and/or wholesale) and Shares or Debentures.

Starting and Operating a Fund

Starting up a fund can be a daunting undertaking. Things to be considered in the process include:

  • Trustee and Issuer – do you have the capacity to do this yourself or should you outsource it?  You will either need to obtain your own AFSL or find an external trustee (ask us for a list of companies we know that can do this).
  • Investment Management – do you want to act as the Investment Manager of the fund?  To do this you can either obtain your own AFSL or become an authorised representative of another AFSL.
  • Registry and Administration – do you have the capacity to do this yourself or do you need to outsource this? (Ask us for a list of companies we know that can do this).
  • Alternatives to a fund – we will explain some alternatives to fund structures, including managed discretionary accounts.

Sophie Grace is able to assist you in starting up a fund that suits your particular circumstances and to provide you with appropriate referrals (in accordance with our no-commissions policy) to coordinate all of the appropriate elements.  We can also assist with ongoing fundraising and other requirements.

Funds in Australia

A fund in Australia is usually set up as a unit trust – where each interest in the trust is one unit.

All trusts must have:

  • A trustee;
  • An Investment manager (this may be the trustee or a separate entity);
  • A Custodian (this may be the trustee or a separate entity).

Please refer to the diagram below which outlines a common trust structure.

The main requirements for all funds in Australia are set out in the Corporations Act and include:

  • The requirement to hold an Australian Financial Services Licence (AFSL) (you can read more about this requirement here);
  • Disclosure requirements; and
  • Registration of the fund with ASIC.