Australia strengthens financial requirements for custodians
The Australian Securities and Investments Commission (ASIC) has published an updated Regulatory Guide 166 "Licensing: Financial requirements" which strengthens the financial requirements for custodial and depository service providers.
Under the changes custodians and asset holders will be required to hold net tangible assets amounting to the greater of:
- AUD$10 million; or
- 10 per cent of average revenue.
The new requirements will apply from 1 July 2013 for new licensees and from 1 July 2014 for existing licensees subject to a transition period.
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