Regulation of Mutual Funds in Australia
Research Handbook on Mutual Funds, William Birdthistle and John Morley, eds., Edward Elgar Publishing, 2017, Forthcoming
37 Pages Posted: 29 Dec 2016
Date Written: December 27, 2016
Over the last two decades, Australia has developed a unique legal and regulatory framework for collective investments, including mutual funds. This framework is built around a single “responsible entity” that combines the role of the fund sponsor and adviser with that of the trustee. This chapter explains three key features of that framework – the fiduciary duties imposed on the responsible entity and its officers, the limited role of an independent party to monitor or oversee the responsible entity’s conduct of the fund, and the availability of investor “self-help” mechanisms, including information rights, voting rights, enforcement rights and exit rights.
Keywords: mutual funds; fiduciary duties; voting; enforcement
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