Govt launches consultation on MIS regulatory framework
![image](https://res.cloudinary.com/momentum-media-group-pty-ltd/image/upload/s--7SS6jMsU--/c_fill%2Cf_webp%2Cg_center%2Ch_480%2Cw_855/v1/Accountants%20Daily/articleimages-391x261/850x492/consultation_business_ad.jpg?itok=72XQuqM4)
![image](https://res.cloudinary.com/momentum-media-group-pty-ltd/image/upload/s--7SS6jMsU--/c_fill%2Cf_webp%2Cg_center%2Ch_480%2Cw_855/v1/Accountants%20Daily/articleimages-391x261/850x492/consultation_business_ad.jpg?itok=72XQuqM4)
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.
Recommended for you
A NSW-based adviser has been banned from providing financial services for five years for inappropriate advice and the AFSL of his business has been cancelled by ASIC.
The introduction of Rhombus Advisory has caused a shift in the top advice licensees as Insignia separates its advice business into two channels.
Given the clear divergence between the cost of financial advice and clients’ willingness to pay, two experts explore how advisers can transform the way they convey value to potential clients.
Nearly 18 months since Invest Blue adopted its nine-day fortnight structure to support employee wellbeing, the national advice firm has enjoyed positive results across all metrics.
Add new comment