Australia – ASIC Hedge Funds Disclosure

Australia – ASIC Hedge Funds Disclosure

On 6 October 2022, AST ASIC guided on improving disclosure for hedge funds.

  • AST ASIC issued regulatory guide 240 hedge funds: improving disclosure (RG 240)
  • Supersedes prior October 2013 version; also noted related regulation impact statement.
  • Follows AST ASIC February 2022 proposed remaking relief on PDSs, FSGs.


  • Corporations act disclosure framework requires the issuer of a hedge fund to disclose upfront to retail investors all the information they reasonably need to know.
  • That is, in order to make a decision about whether or not to acquire the product.
  • Also, it requires such an issuer to provide ongoing disclosure about material matters to help retail investors monitor/determine whether their expectations are being met.
  • Further, requires provision of periodic disclosure of information that such an issuer reasonably believes investor needs to understand their investment in the hedge fund.


  • RG 240 is for fund operators of hedge funds, and those responsible for preparing a product disclosure statement (PDS) for an offer of interest in a hedge fund.
  • AST ASIC encourages other issuers to disclose against the benchmarks and apply the disclosure principles when providing information to investors in similar situations.
  • Such as offers of shares in investment firms pursuing investment strategies normally associated with hedge funds/offers to wholesale investors of interests in a hedge fund.
  • In seeking to improve disclosure, AST ASIC aims to ensure that investors and their advisers have the information they need to make an informed investment decision.
  • AST ASIC also commented that this should not be regarded as an indication that it considers these products suitable for all or most retail investors.

Next Steps

  • Updates to ASIC corporations (shorter PDS and delivery of accessible financial products disclosure by platform operators and superannuation trustees) instrument 2022/497 for corporate collective investment vehicles to be released in coming weeks.