Regulatory regime for MIS can be simplified

The Corporations and Markets Advisory Committee (CAMAC) has released a discussion paper stating the regulatory regime for managed investment schemes (MIS) should be aligned with that of companies and that disclosure requirements be simplified to reduce administrative burdens. 

CAMAC also stated such moves would streamline “regulatory requirements by subsuming the compliance requirements for schemes into the broader risk management framework that encompasses those schemes”. 

The paper also considers extending the Australian Securities and Investments Commission’s (ASIC’s) modification powers to enable it to reduce regulatory requirements in appropriate cases. Then paper also reviews which disclosure regime would best inform scheme investors without creating greater administration for the schemes. 

CAMAC said it would also consider, via the paper, assisting responsible entities to manage scheme capital by providing a statutory buy-back procedure similar to that for companies and examine the valuation of scheme assets. 

CAMAC deputy director Vincent Jewell said the regulatory differences had the potential to create unnecessary complexity and compliance burdens in MIS operators, and that reforms could reduce both uncertainty and administrative and legal compliance costs. 

CAMAC convenor Joanne Rees said the review of MIS was the most detailed since the legislation around MIS schemes was introduced in 1998, with written submissions on any aspect of the paper to be submitted by 6 June 2014.