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.