FUND HOSTING

Obtaining and maintaining an Australian Financial Services License (AFSL) involves several challenges, frustrations, and risks, including a time-consuming application process, high costs for application and ongoing fees, and a significant regulatory compliance burden. As an AFSL holder, fund managers must meet reporting requirements, assume liability and reputational risks for non-compliance, appoint qualified responsible managers, and ensure adequate training and supervision for their representatives. Additionally, AFSL holders need to implement a comprehensive risk management framework to identify, assess, and manage risks associated with their financial services business. These challenges can divert resources and focus away from core business activities, making the process of obtaining and maintaining an AFSL a considerable undertaking for fund managers.

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In Australia, fund operations must comply with legal requirements, including obtaining an AFSL from ASIC and adhering to the Corporations Act 2001 and the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. Non-compliance or operating without proper authorization can lead to fines, penalties, reputational damage, fund closure, and even imprisonment, jeopardizing the fund manager's credibility and investor interests.

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If you are a property fund that does not have the desire, time, resources, or expertise to obtain and maintain your own Australian Financial Services License (AFSL), our Fund Hosting Services could be the perfect solution for you. By operating as a Sub-fund under our Diversified Investment Opportunities Fund, you could be operating legally within as little as two weeks. With our services you will enjoy a variety of benefits, including:

• Regulatory compliance: our oversight ensures that all sub-funds operating under our Fund Hosting Services meet the regulatory requirements of the Australian Securities and Investments Commission (ASIC). We provide guidance and support to sub-funds on issues such as disclosure, reporting, and compliance with the Corporations Act 2001.

• Operational support: we provide a range of operational services to sub-funds, including back-office support, fund accounting, and administration. We also offer access to our established network of service providers, such as custodians, auditors, and legal advisors.

• Access to a broader range of investors: By operating under the Diversified Investment Opportunities Fund (DIOF), sub-funds are exposed to a concentrated, broader range of investors who are attracted to our diversified portfolio. We also assist our sub-funds in marketing their products and services to potential investors.

• Cost savings: By operating under our Fund Hosting Services, sub-funds can benefit from the economies of scale that we achieve in areas such as compliance, administration, and operational support. This can result in lower costs for sub-funds, which can be passed on to investors in the form of lower fees.

 

We understand that obtaining and maintaining an AFSL can be time-consuming, expensive, and frustrating for fund managers. That's why we created our Fund Hosting Services - to provide you with an easy, cost-effective way to operate in compliance with ASIC regulations while focusing on your core business of managing investments. By engaging our services, you can get to market faster, access more investors, and save on costs, all while ensuring regulatory compliance.

 

Interested?

Contact us today to learn more about how our Fund Hosting Services can help your property fund get to market faster in a legal and regulatory compliant way. Our experienced team is here to answer your questions and provide personalized support every step of the way. Do not let regulatory hurdles hold you back from achieving your goals - partner with Diversified Investment Company Limited and take your property fund to the next level.