What is a Responsible Entity
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A Responsible Entity (RE) is a term of Australian law created by the Managed Investments Act July 1, 1998.
Usually, managed investment schemes have a trustee to hold it in trust for the trust owners and a manager -- a double tier system.
In Australia the trustee and manager are both replaced by the simple Responsible Entity, which must be an Australian public company holding a dealer's license to act as an RE. It must have at least net tangible assets of $50,000. If it has under $5 million it must appoint a custodian.
A Responsible Entity Replaces the "Prescribed Interests" Regime
The law places many responsibilities and duties on them, and imposes civil penalties of up to $1 million for violating them. $200,000 in penalties for its officers.
Therefore, every real estate investment trust in Australia, or A-REIT, has a Responsible Entity.
Next: Rubicon Europe Trust Group -- commercial properties and real estate loans in some countries in Europe
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