Mr Jeffrey Lucy, Chairman of the Australian Securities and Investments Commission (ASIC), has confirmed the findings of ASIC’s review of certain investment practices in the Australian managed funds industry.

The review was undertaken by ASIC after US regulators found, in September 2003, that some US mutual funds had entered into a set of trading arrangements that appeared to benefit certain large investors at the expense of the other mutual fund investors.

‘During the review, ASIC found no evidence of systemic or large-scale use of improper investment practices in the Australian managed funds industry. While a small number of minor issues were identified, the fund managers concerned have taken steps to rectify them and to implement enhanced monitoring and compliance procedures’, Mr Lucy said.