Govt launches consultation on MIS regulatory framework
The Government has announced it will launch a consultation into the regulatory framework for managed investment schemes (MIS).
Minister for financial services, Stephen Jones, said Treasury was reviewing the framework and a public consultation would be launched mid-year.
This review would ensure there were strong investor protections in place across the financial sector, with the industry having seen several high-profile MIS failures including Trio Capital and Sterling Income Trust.
The review would examine whether the regulatory framework was fit-for-purpose, identify potential gaps, and consider what enhancements could be made to reduce undue financial risk for investors.
It would consider reform options, focusing on:
• Whether the thresholds that determine whether an investor is a retail or wholesale client remain appropriate;
• Whether certain MIS investments should be able to be marketed and sold to retail investors;
• The various roles and obligations of responsible entities and whether the governance, compliance and risk management frameworks for MIS are appropriate; and
• Interactions between Commonwealth and State laws when regulating real estate investments by MIS (including issues arising in relation to the failure of the Sterling Income Trust).
Treasury would also consider:
• Whether ‘investor rights’ for people who invest in MIS are appropriate;
• Liquidity requirements for MIS; and
• Whether an insolvency regime is required for MIS.
Treasury would release a public consultation paper by mid-year and consult with industry before reporting findings to Government by early 2024.
AUTHOR
Laura Dew
Recommended for you
A quarter of advisers who commenced on the FAR within the last two years have already switched licensees or practices, adding validity to practice owners’ professional year (PY) concerns.
Integrated wealth and financial services group Rethink has launched a financial planning arm called Rethink Wealth to expand beyond property investing and into holistic wealth management.
While adviser numbers continue to slowly creep back up, the latest Wealth Data analysis reveals they would actually be in the green for the calendar year if it weren’t for so many losses in the limited advice space.
Iress has appointed a chief AI officer to spearhead the fintech’s strategic focus on AI, with chief executive Marcus Price describing how the technology opens the doors to a “new frontier for wealth advice”.
