ASIC Uncovers Widespread Compliance Plan Deficiencies in the Managed Investments Industry

In June 2025, ASIC published findings from its review of a selection of compliance plans used by responsible entities (REs) of registered managed investment schemes. Across three sets of obligations, ASIC found widespread deficiencies across key compliance obligations. 

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Compliance plans, and the compliance controls set out in them, are an integral component of effective compliance management systems intended to assist REs in meeting their obligations under the Corporations Act 2001. Compliance plans play a key role in protecting investors and promoting investors’ interests.. 

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Here, we explore ASIC’s key findings, how to identify compliance gaps and what you need to do if you find you’re drawing outside the lines. 

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ASIC’s Review: Key Findings

Key obligations in compliance plans that ASIC has identified require review include: 

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1. Reportable situations reporting — see Regulatory Guide 78 Breach Reporting by AFS licensees and credit licensees (RG 78).
2. Product design and distribution obligations (DDO) — see Regulatory Guide 274 Product design and distribution obligations (RG 274).
3. Internal dispute resolution processes and reporting (IDR) — see Regulatory Guide 271, Internal dispute resolution (RG 271).

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During the review, ASIC identified material deficiencies and compliance risks, including:

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• Most plans failed to adequately address requirements across all three sets of obligations.
• Some plans failed to address one or more entire sets of obligations. 
• DDO compliance was the weakest across all plans, followed by IDR compliance. 
• Some REs incorrectly relied on the master compliance plans of funds operated by other REs, meaning they effectively had no compliance plan in place. 

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Findings are based on reviews across  50 REs. They represent 14.5% of all Australian REs, operate 45% of all registered schemes and hold 47% of the value of all registered scheme assets, valued at around $2 trillion. This suggests the plans reviewed are reflective of the sector at large. 

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Key Questions To Stress-Test Your Compliance Plan

Want to know if your compliance plan is up to standard? Ask yourself: 

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1. Does your plan identify all the RE’s obligations in operating the fund/s? 
2. Does your plan identify the officers responsible for performing and monitoring each control, and their specific functions? 
3. Does your plan specify how the performance of each control measure is monitored?
4. Does your plan stipulate the required frequency for performing each control and monitoring performance? 
5. Does your plan allow for the flow of information to the board or compliance committee?
6. Does your plan require sufficient record-keeping? 
7. Is your plan sufficiently detailed?
8. Is your plan up to date?

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Examples of poor practice include failing to reflect current obligations and providing for ongoing reviews of plan adequacy.

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On the other hand, good practice looks like maintaining updated compliance plans, not only by annual review, but by acknowledging that addressing out-of-cycle update requirements is an ongoing obligation.  

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Could This Be You? 

As ASIC has said: Failing to plan is planning to fail. Moving forward, ASIC will continue to review compliance plans across the registered fund sector and will act where it deems appropriate.

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If you need support identifying gaps in your compliance plan or strengthening compliance controls, get in touch with the team at PMC Legal for expert guidance.  

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