The Trustee Corporations Association (TCA) has called for clearer definition of the roles and liabilities of all parities involved in the running and management of agribusiness managed investment schemes (MIS).
As part of its submission to the inquiry into agribusiness MIS, TCA, the peak representative body for Australia's trustee corporations industry, has asked for greater clarity to be placed on the roles of the financial auditor, custodian, compliance monitor and any other service providers.
"Importantly, the RE (responsible entity) should have full responsibility for the operation of a scheme, and be solely responsible for the prudence of investments (and hence the performance of the scheme)," TCA's submission said.
The association also called for the elimination of the compliance committee and recommended expanding the present function of the compliance plan auditor.
TCA also recommended the inquiry agree to strengthen the financial underpinning of MIS.
"The regulatory framework should mandate a more meaningful level of capital and insurance for REs and all commercial service providers which has regard to the size of funds under management and is not capped at a level as low as $5 million," the submission said.
"Such an approach would provide more substantial means of compensating investors, with less likelihood of the need to draw on the public purse in the event of losses due to maladministration, negligence or fraud."
Accounting body CPA Australia has also weighed into the debate, calling on ASIC to provide specific guidance on the levels of advice client inquiries expect in relation to agribusiness MIS products.
As part of its submission to the inquiry into agribusiness MIS, CPA Australia also called on ASIC or another independent government body to investigate the past returns of the different agribusiness MIS, with the findings to be made publicly available to help inform the market.
