New rules for hedge fund firms could transform Australian sector

London – 22 June 2015: Australia has taken a decisive step towards its advancement as a global investment market, with the smooth passage of the Investment Manager Regime (IMR) legislation through the Australian Parliament.

The Alternative Investment Management Association (AIMA), the global hedge fund industry association, notes that the legislation, which contains a number of favourable amendments to its earlier draft form, marks a new chapter for Australia to grow as an attractive destination for foreign capital and fund trading operations.

Michael Gallagher, General Manager of AIMA Australia, said the IMR is the culmination of meaningful consultations between the financial services industry and Australian Treasury, dating back to 2012; and is designed to ensure fair treatment of all investment segments, including Australia’s young and growing hedge fund community.

“This new regime levels the playing field with other hedge fund centres around the world, and in doing so, promises to transform the hedge fund sector in Australia,” he said.

“Hedge funds managed out of Australia will be more able to attract capital from international institutional investors as a result of these changes, while international fund management firms will find it easier to build a business case for establishing operations in Australia.”

The Bill to implement Element 3 of the Australian Investment Manager Regime (IMR3) was introduced on 27 May 2015, passed by the Senate on 17 June 2015, and now awaits Royal Assent.

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Note to editors

The IMR is part of Australia’s taxation legislation and sets out circumstances in which non-residents investing in Australian financial instruments will not be subject to tax in Australia. The IMR is similar to equivalent regimes in the UK and other international investment management centres.

For media enquiries, please contact:

London –

Dominic Tonner, Director, Global Head of Communications, AIMA

Tel: +44 20 7822 8380

Email: dtonner@aima.org 

Sydney –

Emma Cullen-Ward, OneProfile Communications

Tel: 0414 989 137 or 02 8915 9900

About AIMA

The Alternative Investment Management Association (AIMA) is the global hedge fund industry association, with over 1,500 corporate members (and over 8,000 individual contacts) in over 50 countries. Members include hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting firms, investors, fund administrators and independent fund directors. AIMA’s manager members collectively manage more than $1.5 trillion in assets. All AIMA members benefit from AIMA’s active influence in policy development, its leadership in industry initiatives, including education and sound practice manuals, and its excellent reputation with regulators worldwide. AIMA is a dynamic organisation that reflects its members’ interests and provides them with a vibrant global network. AIMA is committed to developing industry skills and education standards and is a co-founder of the Chartered Alternative Investment Analyst designation (CAIA) – the industry’s first and only specialised educational standard for alternative investment specialists. For further information, please visit AIMA’s website, www.aima.org.