News Round Up

S&P says more rationalisation coming
The pace of investment product and business rationalisation is likely to speed up in Australian as the economy and markets face a more protracted downturn than first anticipated.

Standard & Poor's Fund Service says falling asset values and waning investor sentiment is putting pressure on the volume of funds under management – a key driver of revenue, and therefore profitability, for fund managers.

It believes managers may consolidate operations and find opportunities that provide economies of scale, in order to survive the downturn.

Improved disclosure to investors planned
The government has released a discussion document proposing changes aimed at reducing compliance costs, improve flexibility for issuers and disclosure to investors.