1. October 2010 11:07
ASIC released CP 140 Responsible entities: Financial requirements yesterday.
The consultation paper requests feedback about the following issues:
- restricting guarantees and indemnities granted by REs;
- requiring REs to create rolling 12-month cash flow projections;
- increasing the net tangible asset capital (NTA) requirements for REs; and
- specifying the net tangible asset (NTA) liquidity requirements for REs.
The requirements have not been reviewed since 2002, and are currently contained in RG 166. Comment is open on the consultation paper until 15 November 2010. More information is available on the official ASIC site.