Managed funds rules costly

In a submission on the Financial Markets Conduct Regulations exposure draft, Chapman Tripp has called for changes to regulation 16(a), which prevents lodging a supplement to a PDS for “managed funds”. 

This would mean that changes to the PDS which are adverse to the issue, would require fund managers to produce a replacement PDS. 

Chapman Tripp says there are some problems with the current version of the regulation.

“First, the term ‘managed fund’ is not defined, and we submit that it should be (to ensure that the circumstances in which a managed investment scheme is considered a managed fund are clear).