The Government has announced details of amendments to the Investment Manager Regime (IMR) designed to improve its operation. The Government has also confirmed its intention to introduce the final element of the IMR into Parliament in the first half of 2013.
Upon the introduction of the IMR in June 2012, the Government committed to consult with the funds management industry on the types of funds that could access the regime. Following consultation with industry, the Government said it will make legislative amendments to allow funds to trace through to underlying investors for the purposes of applying the widely held and concentration tests.
As part of the current integrity provisions, funds must have a minimum of 25 members. However, as drafted, the Minister for Financial Services said they inappropriately exclude from IMR Elements 1 & 2 some funds which use common structures such as “feeder funds” that have large numbers of underlying members. He said the proposed changes mean that when so-called “feeder funds” invest in Australia, the number of underlying investors in the fund will count towards meeting the requirements to qualify.
Source: Minister for Financial Services press release No 092, 21 December 2012
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