ASIC today released new financial requirements for responsible entities. Under the changes responsible entities must prepare 12-month cash-flow projections which must be approved at least quarterly by directors.
Additionally new net tangible asset (NTA) capital requirements, require responsible entities to hold the greater of:
- 0.5% of the average value of scheme property (capped at $5 million), or
- 10% of the average RE revenue (uncapped).
A liquidity requirement has also been introduced where an RE must hold at least 50% of its NTA requirement in cash or cash equivalents, and an amount equal to the NTA requirement in liquid assets.