Overheads on Enhanced Vetting Could Ratchet Up Wholesale Fund Costs

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The FSC, a notable entity representing fund managers, superannuation funds, and financial advisory services, conveyed these concerns before a Parliamentary Committee. They specifically referred to the current reliance on wholesale accountant certificates as a verification tool, which members consider vital.

When approached by the Parliamentary Joint Committee on Corporations and Financial Services, the FSC chose not to delve into the perceptions of primary accounting groups regarding the persistence of the accountant certificate system. As for their take on the daily operations tied to generating qualified accountant certificates, the council admitted they weren't in the best position to comment.

"By necessity, many fund managers rely on qualified accountant certificates to verify that prospective clients meet the wholesale client/investor test,” affirmed the FSC. It emphasized its approval for the system, reasoning that individual accountants have superior insights into their clients’ eligibility compared to fund managers.

Highlighting the competitive pressures, the FSC said, “Australian wholesale fund managers already need to compete with:

• domestic retail funds; and
• offshore asset managers,

neither of which are burdened by the compliance expectations linked to the wholesale client/investor test requirements." The undercurrent is that increased due diligence demands would only add cost layers that could impact customers.

The necessity for rigorous due diligence, typically managed by accountants, if shifted to fund managers, would transform into an administrative hitch, subsequently impacting consumers. "This would make these wholesale products less attractive," the council explained. Addressing investment shortages within sectors like domestic venture capital, which rely heavily on such funds, was another key point highlighted in the discussion.

Sourced originally from a detailed account by Mike Taylor (Financial Services Council), these insights illuminate the delicate balance within fund management competition and regulatory responsibilities.

Published:Thursday, 7th Nov 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

Winning Group's Electric Truck Initiative in Sydney and Melbourne

08 May 2026: Paige Estritori

In a significant move towards sustainable logistics, Australian appliance and logistics company Winning Group has partnered with fleet electrification specialist Zenobē to deploy 30 electric trucks across its operations in Sydney and Melbourne. This initiative is supported by a $3.65 million investment from the Australian Renewable Energy Agency (ARENA) through the Driving the Nation Fund. - read more

New Energy Transport's Milestone in Electric Freight Delivery

08 May 2026: Paige Estritori

Australian trucking company New Energy Transport has successfully completed what is being hailed as the country's first fully electric end-to-end heavy road freight delivery. This landmark achievement involved transporting goods from a distribution centre in Sydney to Canberra, approximately 300 kilometres away, on a single charge of an electric long-haul truck manufactured by Belgium-based Windrose. - read more

Janus Electric's New Conversion Centre in Adelaide

08 May 2026: Paige Estritori

Australian electric truck conversion company Janus Electric has announced the launch of its first dealer-led conversion centre in Adelaide, in partnership with Archer Heavy Equipment. This facility marks the beginning of Janus's nationwide rollout of its heavy-vehicle electrification platform. - read more

Volvo's Next-Generation Electric Trucks: A Leap Forward for Australian Transport

30 Apr 2026: Paige Estritori

Volvo Trucks has introduced its latest range of heavy-duty electric vehicles, including the FH, FM, and FMX models, now boasting an impressive range of up to 400 kilometres. This development marks a significant advancement in electric truck technology, offering Australian operators enhanced performance and flexibility. - read more

Wilton Project: Pioneering Australia's Largest Electric Truck Depot

30 Apr 2026: Paige Estritori

New Energy Transport's Wilton Project has been selected as one of the inaugural initiatives under the Australian Government's Investor Front Door program. Located southwest of Sydney, this depot is set to become the nation's largest electric truck facility, supporting up to 50 heavy electric trucks. - read more

Click for more Finance News