What is changing
On 15 October 2026, ASIC released ASIC Corporations (Amendment) Instrument 2026/708 (Amendment Instrument) amending ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647 (Instrument 2023/647).
The amendments implement ASIC’s approach to increasing the net tangible asset (NTA) requirement for responsible entities of registered managed investment schemes and other fund operators previously announced on 30 July 2026, following consideration of 18 submissions received in response to Consultation Paper 388.
ASIC considers that increasing the financial thresholds in the NTA requirement in line with inflation is appropriate to restore their financial value and ensure the objectives of the requirement are met: ensuring responsible entities have adequate financial resources, are entities of substance, and can facilitate orderly transitions or wind-ups if they fail.
Current regulatory requirements
Responsible entities must comply with NTA requirement as part of their obligation to have adequate resources under section 912A(1)(d) of the Corporations Act 2001 (Cth). The NTA requirement for responsible entities is currently set out in Instrument 2023/647.
The current framework includes:
- Non-concessional requirement: Minimum NTA of the greater of $10 million or 10% of average revenue.
- Concessional requirement: Where exceptions apply, the minimum NTA is the greater of $150,000, 0.5% of the average value of fund assets (capped at $5 million) or 10% of average revenue.
- Liquidity component: At least 50% of the NTA requirement must be held in cash or cash equivalents (with a $150,000 minimum), and 100% must be held in liquid assets.
Updated NTA requirements
ASIC has increased the minimum financial thresholds in the NTA requirement to reflect inflation between June 2013 (when they were last updated) and March 2026. Annual indexation have been introduced to ensure the thresholds remain current. The changes will commence on 1 July 2027, with the thresholds applying from this date including the first annual indexation adjustment.
- Inflation adjustments: Minimum financial thresholds in the NTA requirement have been increased to reflect inflation between June 2013 and March 2026. This raises the:
- $150,000 NTA minimum to $200,000;
- $500,000 NTA minimum to $700,000;
- $5 million NTA cap to $7 million; and
- $10 million NTA minimum to $14 million.
- Annual indexation: Annual indexation has been introduced to ensure the thresholds remain current. The thresholds applying from 1 July 2027 include the first annual indexation adjustment.
- Tier $500,000 class assets: The term “Tier $500,000 class assets” in relation to a registered scheme or CCIV has been replaced with “eligible assets”.
- Application: The increases apply to responsible entities, operators of investor directed portfolio services (IDPS) and corporate directors of retail corporate collective investment vehicles (CCIVs).
ASIC will update Regulatory Guide 166 AFS Licensing: Financial requirements (RG 166) to reflect the changes in the coming months.
What’s next
The changes will commence on 1 July 2027.
This article was originally published on 25 March 2026 and updated on 9 September 2026 and 19 October 2026.