ASIC Regulatory Guide 166 AFS Licensing: Financial Requirements (Australia) rg166-app2-3-responsible-entities-idps: Responsible entities and IDPS operators meet tailored cash needs (twelve-month projection), tailored audit and net tangible asset requirements: the greater of one hundred fifty thousand dollars, one half of one per cent of scheme or IDPS property up to a cap of five million, or ten per cent of average revenue, with half held in cash or cash equivalents and the rest in liquid assets, reduced where an eligible custodian holds the assets

What does rg166-app2-3-responsible-entities-idps require?

A responsible entity of a registered managed investment scheme and an operator of an investor directed portfolio service must meet a tailored cash needs requirement based on a rolling twelve-month cash flow projection approved by the directors and updated when it no longer holds, a tailored audit requirement, and a net tangible asset requirement: the greater of one hundred fifty thousand dollars, one half of one per cent of the scheme property or IDPS property on average (capped at five million dollars), and ten per cent of the licensee's average revenue, with at least fifty per cent of the required amount held in cash or cash equivalents and the balance in liquid assets, and the required NTA reduced to the lesser of five million dollars or the formula amount where the scheme or IDPS assets are held by an eligible custodian that itself meets the custodian NTA requirement; the responsible entity must obtain the custodian's written assurance or audit report on that compliance, must have reasonable grounds to believe the custodian complies, and must hold the full requirement where assets are held in-house or by a custodian that does not qualify. A responsible entity that also directs a retail CCIV applies the combined calculation in Appendix 9.