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
ASIC’s court case with Interprac is causing advisers to explore the possibility of self-licensing, according to My Dealer Services, as they observe the reputational damage it can bring to a practice.
AZ NGA has entered a strategic partnership with a Sydney advice firm with $600 million in assets under advice to support its succession plans and future growth.
With complaints on the rise and an expanded jurisdiction, the Australian Financial Complaints Authority is on the hunt for four C-suite roles, three of which are newly-created positions.
Ahead of the 1 January 2026 education deadline for advisers, ASIC has issued its ‘final warning’ to the industry, reporting that more than 2,300 relevant providers could be on their way out.
