Funds Management

Helping our clients navigate complex regulatory and compliance requirements.

Funds Management Services

Australia’s complex financial services laws are constantly evolving and we appreciate how challenging it can be for fund managers to operate in our highly regulated industry.

We work hard to ensure that our clients structure their products and provide their services to meet their commercial objectives, whilst dealing with the complex regulatory and compliance issues.

EQUITIES FUNDS

EQUITIES FUNDS

Funds which invest in securities like shares are one of the most common forms of managed investment vehicles in Australia. Single asset or multi-sector, active or passive: the range of investment classes and strategies is very broad.
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PROPERTY FUNDS

PROPERTY FUNDS

Property funds can take many forms including development funds, AREITs and property securities funds. They can be single or multi-asset, fixed term or open-ended. Each presents its own unique challenges.
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HEDGE FUNDS

HEDGE FUNDS

ASIC considers that a hedge fund is a registered managed investment scheme that is promoted by the responsible entity using the expression and as being a ‘hedge fund’, or exhibits two or more of the characteristics of a hedge fund.
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MORTGAGE FUNDS

MORTGAGE FUNDS

A ‘mortgage scheme’ is a managed investment scheme that has, or that is likely to have, at least 50% of its non-cash assets invested in 'mortgage loans' and/or unlisted mortgage schemes.
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PLATFORMS, WRAPS AND MASTER FUNDS (IDPSS)

PLATFORMS, WRAPS AND MASTER FUNDS (IDPSS)

Platforms, wraps and master funds are industry terms for what ASIC refers to as investor-directed portfolio services (IDPSs) or IDPS-like schemes.
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PRIVATE EQUITY AND VENTURE CAPITAL FUNDS

PRIVATE EQUITY AND VENTURE CAPITAL FUNDS

PE funds, venture capital limited partnerships (VCLPs) and early stage venture capital limited partnerships (ESVCLPs) are investment vehicles with unique features that require specialist legal advice.
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SERVICED STRATA SCHEMES

SERVICED STRATA SCHEMES

To avoid the need to register a management rights scheme as a managed investment scheme with ASIC and obtain an AFS licence to operate it, promoters and/or operators need to comply with ASIC’s class order relief.
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TIMESHARING AND FRACTIONAL OWNERSHIP SCHEMES

TIMESHARING AND FRACTIONAL OWNERSHIP SCHEMES

A fractional or shared ownership scheme is a form of time-sharing scheme, however, the investors are on the title to a property as a tenant-in-common with other investors, and potentially share in any capital gain (or loss) arising from the change in the property’s value.
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Funds Management

CNM Legal offer a range of funds management services. In our role as legal advisers, we can:

FAQs

Our role as your AFSL legal advisor is to guide you through the AFSL application process in an efficient and expert manner, and to prepare all the documentation necessary for you to apply for an AFSL or vary an AFS licence. In order to deliver a successful outcome, our legal advice for an AFSL application may include:

  • Advising you on the authorisations that you will require to successfully apply for an AFSL.
  • Reviewing and identifying the right AFSL responsible managers and preparing agreements.
  • Reviewing professional indemnity insurance to ensure AFSL compliance.
  • Preparing ASIC form FS01
  • Preparing your business description statement for your AFSL application.
  • Assisting you to prepare your financial statements.
  • Preparing your table of organisational competence.
  • Preparing the additional proofs ASIC may request during the AFSL application process.
  • Assisting you in answering ASIC requisitions on the AFSL application.

While there is only one licence for financial services in Australia, there are multiple different authorisations that we can help you obtain, depending on what you plan to use your licence for financial services for. Every AFS licence is different, and not every licensee is authorised to provide all the financial services it is possible to provide. Some licensees, like independent experts, may only need a very limited AFS licence, whilst fund managers generally require licences with a number of authorisations. Determining what authorisations you require will also determine the AFSL responsible managers you need to nominate, so this step is critical in the process. Here are a few of the different types of AFSL’s we’ve helped our clients obtain.

  • Financial Planning Licence
  • Foreign Exchange Licence
  • CFDs Licence
  • Managed Funds Licence
  • Limited Licence (for Accountants)
  • APRA Licence (ADIs/Banking Licence)
  • Stock Broker’s Licence
  • …and More
Any AFSL application rises and falls on the experience and knowledge of the nominated AFSL responsible managers. A responsible manager is a person who is responsible for the day-to-day decision making about the financial services provided by an AFS licensee. This does not mean that they personally have to be providing the services— but they are responsible for the supervision of those that do provide the services. In our role as your AFSL legal advisor, we can not only vet your proposed responsible managers and identify any skill gaps, but also leverage our extensive industry network to suggest qualified candidates to ensure a successful AFSL application.CNM Legal also offer a free AFSL Responsible Manager training course to ensure AFSL compliance.Our services include:
  • Reviewing resumes of any proposed AFSL responsible managers.
  • Identifying any skill or experience gap among the proposed responsible managers.
  • Assisting you in identifying and recruiting responsible managers to provide the requisite skill or experience, either internally or on a consulting basis.
  • Preparing responsible manager AFSL appointment agreements.
  • Preparing pro forma reference letters for your responsible managers.
  • Assisting you in obtaining criminal history checks and bankruptcy searches for your nominated AFSL responsible managers.
  • Providing free training for AFSL Responsible Managers

All AFS licensees (other than those regulated by APRA) must be solvent and have positive net assets. In addition, to apply for an AFSL, licensees must prove they have, or have access to, sufficient financial resources to meet their anticipated cash flow expenses. For particular licensees, such as responsible entities, IDPS operators, wholesale fund trustees, custodial and depository service providers and retail OTC derivative issuers, additional capital adequacy requirements apply. You will need to budget for these requirements and provide balance sheets, cash flow statements and other financial information to ASIC as part of the AFSL application process. We will help you every step of the way as you apply for your Australian Financial Services License.

Holding your own Australian financial services licence (AFSL) is an important step for any financial services business. It can provide you with independence, allow you to reach larger markets and provide your clients with a greater sense of security. But do you need an AFSL?
Chances are that if you are reading this guide, then you have already made the decision to apply for an AFSL. If you are in the business of providing financial services in Australia, then unless an exemption applies, you will need an AFSL.

There are, however, a number of circumstances where you are not required to hold an AFSL. Examples include where you are an authorised representative of a licensee, you only provide financial services to related bodies corporate or you are an off-shore regulated entity that only provides services to wholesale clients in Australia. If you are not sure whether you need an AFSL, then it is best to speak to a specialist and get some advice. Please get in touch for expert legal advice.

A fundamental question before you apply for an AFSL is whether you will be providing services to retail clients or wholesale clients —or both. Providing services to retail clients means that you must hold professional indemnity insurance, become a member of an external dispute resolution scheme and comply with additional training obligations where you are providing advice to those retail clients.

Understanding how retail and wholesale clients are defined under the law is vitally important in understanding the kind of AFSL you require. Wholesale clients are generally those that meet certain wealth thresholds or invest $500,000 or more in a financial product. Get the right legal advice before you start your AFSL application.

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