Funds Management

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.

Contact us for further information on how we can assist you.