Sydney, Australia------How to define the responsible entity?

It can be defined typically as an Australian invention which has been designed for the sole purpose of replacement of the trustee or the management in some schemes of managed investments. During the year 1998, it got drafted by 'Managed Investments Act'. This act made some vital amendments to the provisions of prescribed attractions which consisted within the Act of 'Australian Corporations Act'.

The afresh arrangements successfully made a replacement of the formula which is relatively well identified among the common law jurisdiction which contains a two-tiered management or a trustee of the company regime along with just a single numbered responsible entity. They will be holding for the members of the scheme only the properties that better can be identified as the scheme property. In fact, these are the person who will be having power of making an appointment with the agent who will be doing all the things that consists of authorization to perform related with the scheme.

For the month of November of the year 1999, the smallest continent ever made a takeover to the regulations of the scheme which further got extended within the schemes that are listed and the compulsory acquisitions as well as takeovers provisions got applied.

What is the role of the Responsible Entity?

He will be performing the dual role of the manager as well as the trustee of some investment scheme and henceforth need to get appointed as soon as the scheme of investment requires a ready registering.

What is more important is that the entity needs to someone from the Australian company where they need to have certain stages of assets which are net tangible. But surprisingly, this needs to be well dependent on the scheme asset's value and its worth. Also the entity needs to hold a license of the 'Australian Financial Services'.

While making an act and performing as the responsible entity they need to follow certain acts which are being discussed below:


Make an honest act
Diligence and care are the two words which hold the equal importance where you would be required to exercise on such regularly
You need to perform with the sole intention of serving better to your members with its various schemes of investment
Equally, you need to be treated properly for all the members of the investment scheme
Things to know about the entity

Either the entity can be owned as a fund manager by the group or on another way can be run as a fund manager all alone such as the external manager. And what is noteworthy that the latter that is the 'External Entity' would be performing on the behalf of an investment scheme which typically will be entering into the agreement of the management along with the fund manager.

Hence comes a short note about the keyword which has been boiled to make it clear for you and understand their various responsibilities along with the definition to clear make an idea about the same.

Content Source : https://corporatetrust.wordpress.com/2015/09/14/a-short-note-about-the-responsible-entity/

Company Overview:

One Investment Group is an independent funds management business specialising in providing Responsible Entity, Trustee, Custody and Administration services. We manage a range of asset classes including hedge funds, real estate, private equity, infrastructure, equity and mortgage.