responsible entity.

So who is our R.E.? You know, the one that sticks by the rules.

A Responsible Entity has the dual role of trustee and manager of an investment scheme, and must be appointed if an investment scheme needs to be registered.

The Responsible Entity must be an Australian public company, with certain levels of net tangible assets, depending on the value of the scheme’s assets. The Responsible Entity must hold an Australian Financial Services Licence.

When acting on behalf of an investment scheme, the Responsible entity must:

* Act honestly
* Exercise a reasonable degree of care and diligence
* Act in the best interest of members of the investment scheme
* Treat all investment scheme members equally
A Responsible Entity can either be owned by the same group as the fund manager, i.e. an "internal" responsible entity, or alternatively be run separate to the fund manager, i.e. an "external" responsible entity. Where the Responsible Entity is external, the Responsible Entity, on behalf of the investment scheme, typically enters into a management agreement with the fund manager.