Responsible entity services
The Huntley Group holds an Australian Financial Services Licence and acts as a responsible entity for managed investment projects registered by ASIC.
As a responsible entity (RE), we provide promoters with ongoing support in developing and operating schemes for investors. We assist with registration, compliance, administration and financial reporting in accordance with the scheme’s constitution and the Corporations Act 2001 (Cth). Promoters actively maintain roles in their projects while having continued access to our responsible entity services.
What is a responsible entity?
A RE is a public company holding an Australian Financial Services Licence which authorises it to operate a managed investment scheme. The RE has various statutory duties directed to protecting investors. An RE is required for all registered managed investment schemes in Australia.
The RE operates both as a trustee and manager. It holds scheme property on trust for investors, and has the power to appoint agents for authorised tasks relevant to the scheme. This may include appointing a custodian to hold scheme property on behalf of the RE.
What is the role of a responsible entity?
The RE’s duties are set out in the Corporations Act 2001 and the managed investment scheme’s constitution. In particular, an RE must:
- Act honestly;
- Exercise the degree of care and diligence that a reasonable person would exercise if they were in the RE's position;
- Act in the best interests of members of the scheme and, if there is a conflict between the members' interests and its own interests, give priority to the members' interests;
- Treat all members with interests in the same class equally and members in different classes fairly;
- Ensure the scheme has a constitution and compliance plan which meet regulatory and legal requirements;
- Ensure that all scheme property is held separately from RE Property and property of any other scheme; and
- Report any breach of the Corporations Act, relating to their scheme, to ASIC.
An RE’s services and responsibilities can include:
- Issuing the project product disclosure statement.
- Complying with annual financial reporting and auditing obligations.
- Reporting obligations to investors.
- Dealing with investor’s enquiries.
- Managing the investment project or appointing the scheme operational manager.
- Entering into an agreement to cover the relationship between the RE and operational manager including reporting, funding and budgetary arrangements, insurance, audits, additional funding, and other relevant matters.
Who would typically seek the services of a responsible entity?
RE services would typically be sought by:
- Promoters or investment managers wishing to establish a managed investment scheme in Australia
- Investors wanting to replace their existing RE
- Existing RE’s who would like to be replaced for a particular business reason
What are the benefits of engaging the services of an independent responsible entity?
Engaging a RE, such as The Huntley Group, provides several benefits:
- We do not promote or market the projects we manage. This assures that we act only in the best interest of investors.
- We relieve promoters from the requirement to manage the complex compliance regime imposed by ASIC
- In most cases, we appoint the promoters or originators of the projects to undertake the operational management role. This maintains their direct interest in the project.
If you have any questions or would like to know more about our services, please contact us.