MFA and AIMA Submit Joint Comments to Australian Treasury on Draft Investment Manager Regime Legislation

MFA and AIMA submitted a joint letter to the Australian Treasury with comments on the draft Investment Manager Regime legislation (IMR 3).  In the letter, we expressed support for the Australian government’s objectives of encouraging foreign investment in Australia by providing clarity with respect to the tax treatment of foreign investment funds investing in Australian securities.  MFA and AIMA also suggested amendments to the draft legislation that we believe are necessary for the IMR 3 to achieve these objectives.  MFA and AIMA specifically encouraged Australian Treasury to, among other things: (1) modify the “closely held” rules to exclude remuneration paid to investment fund managers; (2) increase the ownership limits in a manner consistent with similar rules in other jurisdictions; (3) expand the category of institutional investors deemed to be widely held, to include funds-of-funds, sovereign wealth funds, and endowments and foundations; and (4) clarify the extent to which certain provisions in IMR 3 will be applied retroactively to prior tax years.