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ob体育 letter to responsible entities of registered schemes in the current COVID-19 environment

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ob体育 is reminding responsible entities (REs) of registered managed investment schemes about their fundamental duties and legal obligations to members as they face the market volatility, disruption and other challenges associated with COVID-19.

REs must comply with the law and their general licensee duties. They must also exercise their powers and carry out their duties in the best interests of scheme members.

ob体育 expects REs to actively manage scheme liquidity. Should a scheme become non-liquid, ob体育 has powers to grant hardship relief and rolling withdrawal relief on a case-by-case basis (see Regulatory Guide 136 Funds Management: Discretionary Powers). REs should notify ob体育 if any registered scheme becomes non-liquid or if redemptions are suspended. Affected REs should email [email protected].

ob体育 has written directly to a selection of larger REs on these issues.