Managed Investments Act 1998

Legislation au C2004A00322 Not in force Act

Legislation content

Managed Investments Act 1998

Act No. 62 of 1998 as amended

This compilation was prepared on 29 March 2000

[This Act was amended by Act No. 156 of 1999]

[Schedule 9 (item 2) repealed and substituted the
heading to Part 2 of Schedule 2.
This amendment commenced on 29 June 1998.]

Prepared by the Office of Legislative Drafting,
Attorney‑General’s Department, Canberra

 

 

 

Contents

1 Short title...................................

2 Commencement...............................

3 Review of operation of Act.........................

4 Schedules...................................

Schedule 1—New managed investments provisions and transitional provisions

Corporations Law set out in section 82 of the Corporations Act 1989

Chapter 5C—Managed investment schemes

Part 5C.1Registration of managed investment schemes

601EA Applying for registration..........................

601EB Registration of managed investment scheme..............

601EC All documents etc. lodged with ASC to bear ARSN..........

601ED When a managed investment scheme must be registered.......

601EE Unregistered schemes may be wound up.................

Part 5C.2—The responsible entity

Division 1Responsibilities and powers

601FA Responsible entity to be public company and hold dealers licence..

601FB Responsible entity to operate scheme...................

601FC Duties of responsible entity........................

601FD Duties of officers of responsible entity..................

601FE Duties of employees of responsible entity................

601FF Surveillance checks by ASC........................

601FG Acquisition of interest in scheme by responsible entity........

601FH Liquidator etc. of responsible entity entitled to exercise indemnity rights             

Division 2—Changing the responsible entity

601FJ Changes only take effect when ASC alters record of registration...

601FK Requirements of section 601FA must be met..............

601FL Retirement of responsible entity......................

601FM Removal of responsible entity by members...............

601FN ASC or scheme member may apply to Court for appointment of temporary responsible entity             

601FP Appointment of temporary responsible entity by Court........

601FQ Temporary responsible entity to take steps for appointment of new responsible entity             

Division 3Consequences of change of responsible entity

601FR Former responsible entity to hand over books and provide reasonable assistance             

601FS Rights, obligations and liabilities of former responsible entity....

601FT Effect of change of responsible entity on documents etc. to which former responsible entity is party             

Part 5C.3—The constitution

601GA Contents of the constitution........................

601GB Constitution must be legally enforceable.................

601GC Changing the constitution.........................

Part 5C.4—The compliance plan

601HA Contents of the compliance plan......................

601HB Compliance plan may incorporate provisions from another scheme’s plan             

601HC Directors must sign lodged copy of compliance plan..........

601HD ASC may require further information about compliance plan.....

601HE Changing the compliance plan.......................

601HF ASC may require consolidation of compliance plan to be lodged..

601HG Audit of compliance plan..........................

601HH Removal and resignation of auditors...................

601HI Action on change of auditor of compliance plan............

Part 5C.5—The compliance committee

601JA When is a compliance committee required?...............

601JB Membership of compliance committee..................

601JC Functions of compliance committee...................

601JD Duties of members..............................

601JE Compliance committee members have qualified privilege in certain cases             

601JF

Overview

The Managed Investments Act 1998, enacted by the Commonwealth of Australia, was introduced to address the regulatory gap in the management and oversight of managed investment schemes. This legislation was enacted by the Parliament of Australia to amend the Corporations Law and other relevant Acts, aiming to enhance the transparency, accountability, and protection of investors in managed investment schemes. The Act establishes a comprehensive regulatory framework that governs the registration, operation, and winding up of managed investment schemes, ensuring that they are conducted in a manner that safeguards the interests of scheme members.

Scope and Application

The Managed Investments Act 1998 applies to registered managed investment schemes, which are schemes with more than 20 members or promoted by someone in the business of promoting such schemes, unless all issued interests were excluded issues. The Act regulates the registration, operation, and winding up of these schemes, and also imposes duties on responsible entities, officers, and employees. The Australian Securities and Investments Commission (ASIC) oversees the registration process, and can deregister schemes that do not meet the requirements. The Act includes provisions for the appointment and removal of auditors, the management of scheme property, and the protection of members' rights, including the right to withdraw from a scheme. Additionally, the Act addresses related party transactions, exemptions, and modifications, as well as the consequences of contraventions, including civil liability and voidable contracts. The Act also provides for the winding up of schemes, deregistration, and reinstatement of registration.

Key Provisions

  • The Managed Investments Act 1998 (Cth) introduces comprehensive regulations for managed investment schemes, aiming to protect investors by ensuring that these schemes are operated transparently and with due diligence. The Act mandates the registration of schemes with the Australian Securities and Investments Commission (ASC), requiring them to maintain specific standards to safeguard investors’ interests. Key provisions of the Act include requirements for registration, the duties of responsible entities, the establishment of compliance plans, and the establishment of compliance committees for certain schemes.
  • To register a managed investment scheme, an application must be lodged with the ASC, detailing the proposed responsible entity and the auditor of the compliance plan. The constitution of the scheme must comply with the Act, ensuring it provides adequate provisions for the consideration of acquiring an interest, the powers of the responsible entity, and the method for dealing with member complaints and winding up the scheme. The compliance plan must outline measures for ensuring compliance with the Act and the scheme's constitution, including arrangements for maintaining the separateness of scheme property and auditing compliance:Section 6011014.

Legal classification tags

Area of Law
Commercial Law
Corporate Law & Governance
Financial Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Licensing & Registration
Civil Penalty Provisions
Enforcement Powers
Compliance Obligations
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.