14th November 2007

Dear Investor,

What is the role of ASIC - Australian Securities and Investment Commission?

Who is ASIC?

ASIC is Australia’s corporate, financial markets and financial services regulator. It is ASIC’s role to ensure that Australia’s financial markets are fair and transparent and that investors and consumers are kept properly informed.

ASIC is an independent Commonwealth Government body. It is set up and administered by the Australian Securities and Investment Commissions Act with most work carried out under the Corporations Act.

What does ASIC regulate?

ASIC has 3 main regulatory roles

Corporate Regulator – It is ASIC's role to ensure that company directors and officers carry out their duties honestly, diligently and in the best interest of their company. They also register all companies and ensure that information about them is available efficiently and quickly.

Markets Regulator – ASIC assess how effectively financial markets are complying with their legal obligations to operate fair, orderly and transparent markets.

Financial Services Regulator – ASIC license and monitor financial services businesses to ensure that they operate efficiently, honestly and fairly. These businesses typically deal in superannuation, managed funds, shares and company securities, derivatives and insurance.

In addition to these regulatory roles ASIC is responsible for issuing Australian Financial Services Licenses (“AFSL”) and the monitoring of Companies and Managed Investment Schemes, Financial Service Providers, Registered Auditors and Liquidators and Licensed Financial Markets.

What is an AFSL?

As part of the Corporations Act 2001 any business provider of financial services must hold an Australian Financial Services Licence (“AFSL”), unless they are covered by an exemption or are an Authorised Representative of an AFSL holder.

ASIC manages the issuing of these licenses as it is responsible for administering the Corporations Act.

Applying and receiving an AFSL is quite a stringent process and only companies that can satisfy ASIC that their directors and operations are of the utmost credibility, will be issued a license.

Holders of an AFSL must supply to ASIC various documentation and financial reports on a regular basis.

Managed Investment Schemes

In addition to holding an AFSL, Managed Investment Scheme providers must also register separately with ASIC to operate their managed investment scheme. This registration process has a separate set of rules and regulations that providers must adhere to such as:

  • They must have a compliance plan
  • They must appoint an auditor of the compliance plan
  • The compliance plan auditor must audit the compliance plan annually
  • The auditor must then provide the Responsible Entity (“RE”) of the Managed Investment Scheme with a report of the compliance plan audit.
  • The RE must lodge with ASIC a compliance plan audit report, financial report and a directors report annually

How does ASIC monitor Managed Investment Schemes?

There are a number of monitoring activities undertaken by ASIC. These include:

  • Reviewing selected documents lodged with them such as; prospectuses, product disclosure statements (“PDS”), supplementary product disclosure statements (“SPDS”), bidder’s statements, target statements and financial statements
  • Requesting additional or corrective disclosure if they find the information provided is unsatisfactory
  • Enforcement of ‘stop orders’ if there is a serious defect with documents such as a PDS
  • Inspecting companies that are showing signs of distress in order to minimise insolvent trading.

La Trobe’s position in summary

La Trobe Financial Asset Management Limited holds an Australian Financial Services Licence, Number 222213 and the La Trobe Australian Mortgage Fund (“the Fund”) is a registered Managed Investment Scheme registered with ASIC on 14 July 1999.

La Trobe has a Compliance Plan for the Fund which is reviewed on an annual basis by the Head of Legal and Compliance and the Board of Directors to ensure that it continues to meet the requirements of the Corporations Act. La Trobe has worked closely with ASIC over the years and has successfully passed a number of surveillance visits. Audits of La Trobe’s Compliance Plan and financials for the Fund are conducted by our external independent auditors.

La Trobe also has its own internal audit and compliance schedule and regular internal audits are conducted on its processes and procedures in addition to surveillance visits of it’s 27 Authorised Representatives who operate under La Trobe’s AFSL.

Copies of the La Trobe’s Directors Report, Auditors Reports and the Compliance Auditor’s Certificate for the Fund can be found in the La Trobe Australian Mortgage Fund Financial Report 2007. You can access this report via our website at www.latrobefinancial.com.au or by phoning 1800 707 707.

Source: ASIC website & ASIC: a guide to how we work

Best regards,
Chris Andrews


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Chris Andrews
Head of Funds Management

t  +61 3 8610 2811
e  candrews@latrobefinancial.com.au

Chris Andrews is the Head of Funds Management for the La Trobe Group and has responsibility for the La Trobe Australian Mortgage Fund.
Read full profile here.

La Trobe is one of Australia's leading independent specialist mortgage Financiers. Its business includes residential mortgages, commercial mortgages, and investment services operating one of Australia's largest Mortgage Funds under AFSL 222213. It employs over 115 staff and has raised over AUD$10Billion to assist over 100,000 customers since inception in 1952.

Copyright 2010 La Trobe Financial. All rights reserved. No portion of this may be reproduced, copied, or in any way reused without written permission from La Trobe Financial. Disclaimer

* La Trobe Financial Asset Management Limited ABN: 27 007 332 363 and AFSL No: 222213 is the issuer and manager of the La Trobe Australian Mortgage Fund. It is important for you to read the Product Disclosure Statement for the Fund before you make any investment decision. You can get a copy of the PDS by calling 1800 818 818. You should consider carefully whether or not investing in the Fund is appropriate for you.
(1) The rates of return from the Fund are not guaranteed and are determined by future revenue of the Fund, and may achieve lower than expected returns. Past performance is no guarantee of future performance. Investors risk losing some or all of their principal investment.
(2) Withdrawal rights are subject to liquidity and may be delayed or suspended.
(3) As at 30/11/10 the La Trobe Australian Mortgage Fund had received a Morningstar RatingTM of 5 stars. The Morningstar Rating is an assessment of a fund's past performance - based on both return and risk - which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision. © 2010 Morningstar, Inc. All rights reserved. Neither Morningstar, nor its affiliates nor their content providers guarantee the above data or content to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. You should consider the advice in light of these matters and, if applicable, the relevant product disclosure statement, before making any decision. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.pdf
(4) 3.75 star rating out of a possible 5 star rating indicates that Adviser Edge believes that La Trobe has performed in line with its peers and exceeded its peers on some fronts.
(5) The Standard and Poors rating of 4 out of 5 stars indicates that S + P has high conviction that La Trobe Financial will consistently generate risk-adjusted fund returns in excess of its relevant investment objectives and relative to its peers.
(6) The award was given to the La Trobe Australian Mortgage Fund, Pooled Mortgages Option.
Research Ratings are subject to change. To view the latest research information please visit www.adviseredge.com.au or www.standardandpoors.com.au. Ratings issued by Adviser Edge Investment Research AFS Licence No. 236783 and Standard & Poors Information Services (Australia) Pty Ltd AFS Licence No. 258896 are solely statements of opinion and not statements of fact or recommendations to purchase, hold, or sell any securities or make any other investment decisions. The ratings are only one factor to be taken into account in deciding to invest. Research Houses receive a fee from La Trobe for rating the product. The Adviser Edge rating is generally a measure of the rated entity's capacity to meet its repayment obligations in all market circumstances.
IMPORTANT: This message, together with the La Trobe Financial website (www.latrobefinancial.com.au) and all its contents have been prepared for general information only and should not be taken as legal or financial advice, and as such the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before acting on any information present on this message or the La Trobe website.