TIME could be running out for twelve WA property managers who are not yet compliant with legislation under the Managed Investment Act.
Those property managers operating serviced strata schemes who missed the 1 March deadline are at risk of being wound up on instructions from the Australian Securities and Investment Commission.
Serviced strata schemes, which are less advanced, have until 1 July to comply with the Act.
Only thirteen of WA’s twenty-five property managers are currently compliant with the new legislation, which is designed to protect investors’ rights.
Under the legislation, managers of managed investment schemes are required to be licensed as a responsible entity.
Law firm Teys McMahon partner Greg McMahon, who acts for WA groups including the Kareelya Property Group, said investors in schemes registered by ASIC could be confident in the knowledge the manager had satisfied a rigorous registration and licensing process.
“Those people who invest in serviced strata schemes have to rely far more on the experience and abilities of a manager than do investors in standard residential or commercial letting arrangements,” Mr McMahon said.
“Investors should check that the manager of any managed investment scheme they are considering is licensed, or they should ask to see a notice issued by ASIC,” he said.
Companies applying to become responsible entities have had to demonstrate to ASIC they were capable of undertaking the role of responsible entity of a managed investment.
They needed to meet ASIC’s requirements for capitalisation of the company and demonstrate that the necessary experience, management and compliance systems were in place to effectively manage the investment.
