Final report on Discretionary Mutual Funds supports industry ‘approval tick’

06 December 2021

The following commentary has been issued by Melina Morrison, CEO of the BCCM in response to today’s release of the final report into the risk protection crisis facing Australia’s amusement, leisure and recreation sector.

The report by the Australian Small Business and Family Enterprise Ombudsman found that a Discretionary Mutual Fund (DMF) was the best way to address the crisis which has left many operators in the leisure and amusements sector struggling to find risk cover due to a hardening of insurance markets worldwide.

Ms Morrison welcomed the Ombudsman’s findings that DMFs could provide cost effective alternate risk protection, which was essential to ensuring the viability of small businesses in broken markets.

“DMFs are a proven model, provided they are accompanied by good governance, robust management and adequate capital and, to that end, we will be working with government to develop a set of guidelines to ensure best practice for the industry”, Ms Morrison said.

“These will be a tick of approval to show consumers and government that a DMF meets the industry standards of the sector’s reputable, sustainable and well governed businesses.”

Read our initial media release dated 20 October 2021.

Please contact Anthony if you’d like to discuss this report.

Latest news

23 June 2022

Australian co-operatives and mutuals to work with president of international peak body on raising the sector’s profile locally and globally

Australia’s $34.4 billion co-operatives and mutuals sector has congratulated Argentina’s Arial Guarco on his re-election as President of the sector’s global peak...
17 June 2022

Co-operative and mutual sector overcomes pandemic headwinds to post 10% revenue growth

Top 100 co-ops and mutuals defy pandemic to record 10 per cent revenue growth and the strongest gains in agribusiness, motoring and financial services.
09 June 2022

NSW parliamentarians throw support behind co-operatives and mutuals sector

The BCCM has declared today’s formation of the first Parliamentary Friends Group for co-ops and mutuals in the New South Wales Parliament a milestone in awareness of...