Under the new changes, the NTA requirement will also be subject to annual indexation to ensure the thresholds remain current going forward.
The changes follow ASIC’s consideration of submissions made in response to Consultation Paper 388: Net tangible assets requirement for responsible entities (CP 388). While ASIC is yet to provide the finalised figures for the new NTA requirement applicable from 1 July 2027, it has stated that it intends to adopt Option 1 that was set out in CP 388. Should ASIC adopt the figures that were set out in Option 1, this would raise the NTA requirement for responsible entities, as well as IDPS operators and corporate directors of CCIVs in line with CPI growth, and would see the current:
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$150,000 NTA minimum increase to $200,000;
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$500,000 NTA minimum increase to $700,000 (Note: The $500,000 NTA minimum forms part of the concessional NTA requirement for responsible entities that hold ‘Tier $500,000 class assets’);
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$5 million cap that applies to the average value of fund assets limb of the concessional NTA requirement increase to $6.9 million; and
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$10 million NTA minimum increase to $13.8 million.
ASIC will amend ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647, which contains the NTA requirements, and update Regulatory Guide 166: AFS Licensing: Financial Requirements (RG 166) to reflect these changes in the coming months.
New and existing responsible entities of registered managed investment schemes, IDPS operators and corporate directors of retail CCIVs should ensure they are aware of these changes. Once ASIC has implemented these changes and amended ASIC Instrument 2023/647 in the coming months, they will need to take steps to ensure that they are compliant with the new NTA requirements by 1 July 2027.