Fund Regulatory Update

New inquiry launched into implications of capital concentration

The House of Representatives Standing Committee on Economics has commenced a new inquiry into the implications of capital concentration and common ownership in Australia. Tim Wilson, MP and committee chair said there is already a high concentration of ownership of ASX-listed companies by an increasingly small number of ‘mega funds'. Common ownership poses a threat to competition when it hits 10 per cent, but in some cases it has already hit 30 per cent.

‘We don’t want a stock exchange where a hand full of ‘mega funds’ make all the decisions, and ordinary investors are locked out and higher costs are paid by Australians. Some ‘mega funds’ have already said that as their ownership increases they’d de-list public companies’.

Find the full terms of reference on the committee’s website. Submissions close on 13 September 2021.