ASIC to Increase Financial Thresholds for Investment Entities
Australia's financial regulator is raising net tangible asset requirements for registered managed investment schemes starting in 2027.
Updated on Oct. 28, 2026 in Investing
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The Australian Securities and Investments Commission (ASIC) will raise minimum net tangible asset (NTA) requirements for responsible entities of registered managed investment schemes. These new financial thresholds are set to commence on 1 July 2027.
Why it matters
These increases reflect cumulative inflation since 2013 and aim to ensure that entities maintain adequate resources for operating costs and liquidity. The adjustments provide a buffer against unexpected expenses for these financial service providers.
Entities using external licensed custodians will face an NTA increase to $700,000, while all other providers must meet a new $13.8 million requirement. These figures, which replace levels frozen since 2013, will be subject to annual indexation.
The players
ASIC
The Australian Securities and Investments Commission is the national regulator responsible for enforcing laws that protect consumers, investors, and creditors in Australia.
The details
ASIC revised the ASIC Corporations Instrument 2023/647 following industry feedback from Consultation Paper 388. The regulator will formally update this instrument and Regulatory Guide 166 in the coming months to codify the new capital standards.
Timeline
The last update to financial thresholds occurred in 2013.
ASIC will update regulatory instruments over the upcoming months.
New minimum thresholds will officially commence on 1 July 2027.
Market Dynamics
The move updates the regulatory framework defined by the ASIC Corporations Instrument 2023/647 to account for a decade of economic changes. By formalising these capital requirements, the regulator is aligning industry standards with current inflationary pressures in the Australian financial sector.
For investors, these higher capital requirements serve as a safeguard by ensuring the entities managing their funds are better equipped to cover operating costs and liquidity needs. The change establishes a more robust financial baseline for providers, reducing the risk of insolvency for registered managed investment schemes.
The takeaway
Entities operating in the managed investment space should begin internal budget planning now to meet the increased capital requirements by 2027. Investors can monitor these updates as a sign of strengthened regulatory oversight aimed at enhancing systemic stability.
Further reading
For broader trends in market regulation and financial governance, explore more on Australia Investing.
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Should government regulators increase financial reserve requirements for investment entities to protect consumers?
