ASIC’s recent infringement notice issued to a fund responsible entity, as reported by Financial Standard, is a timely reminder of the shared responsibility between investment managers and their responsible entities to ensure all public‑facing materials are accurate, transparent and compliant.
The infringement notice focused on presentation of fund performance, not just factual errors. It signals that ASIC is scrutinising how performance data is framed and compared, particularly where strategy data might be used to potentially embellish the fund’s track record.
When you pause and consider the sheer volume of information an average fund manager publishes, including presentations, flyers, social media posts, advertisements, thought‑leadership pieces, the scale of the task becomes clear. These materials play an important role in communicating with investors, building confidence in an investment capability and reinforcing trust. At the same time, they carry a responsibility: any claims or statements made must be factual, clearly disclosed and free from ambiguity. These are, after all, marketing assets. With that comes inherent risk if accuracy and oversight are not tightly managed.
In Australia, a Responsible Entity (RE) holds ultimate accountability for a registered managed investment scheme, while a Trustee has accountability for both registered and unregistered managed investment schemes. Their obligations include overseeing compliance, protecting investors’ interests, administering scheme assets and ensuring operations align with the Corporations Act and the scheme constitution. They must act efficiently, honestly and fairly, maintain appropriate resources, manage risks and provide clear reporting to regulators and investors.
Engaging an independent RE or Trustee provides an additional layer of objective oversight. This is an area of increasing focus for ASIC, particularly in private capital markets where conflicts of interest can be more pronounced. This trend is also influencing how platforms and research houses assess and onboard funds, and it aligns with the emergence of groups such as Wholesale Investor Advocacy Australia, which place greater emphasis on governance for wholesale investors.
This action should not be viewed in isolation. We believe it reflects a broader regulatory shift toward closer scrutiny of how performance and risk are presented, particularly in private and less transparent asset classes. The traditional distinction between retail and wholesale markets is narrowing in practice, with governance and disclosure standards increasingly converging. In this environment, governance quality is no longer a compliance exercise – it is a determinant of distribution access and long-term capital credibility.
At The SILC Group, our priority is fulfilling our trustee duties with the highest level of diligence for the fund managers who partner with us. A core part of our value proposition is the formal review and approval of all materials intended for external use, including marketing collateral and investor communications. This rigorous process is central to supporting fund managers in maintaining transparency, meeting regulatory expectations and protecting investors.
If you’d like to discuss how SILC supports investment managers through trusted governance, oversight and fund administration, our team is always ready to help.
