Managed investment schemes
What are managed investment schemes?
Managed investment schemes are also known as 'schemes' or 'pooled investments'. Generally, in a managed investment scheme:
- multiple investors contribute money or money's worth and get an interest in the scheme. 'Interests' in a scheme are a type of financial product and are regulated by the聽 Corporations Act
- money from the different investors is pooled together (often many hundreds or thousands of investors) or used in a common enterprise
- a 'responsible entity' (also referred to as a 'fund manager')聽operates the scheme. Investors do not have day-to-day control over the operation of the scheme.
Managed investment schemes cover a wide variety of arrangements and underlying assets. Some examples of managed investment schemes include:
- cash management trusts
- property schemes
- Australian equity (share) schemes
- international equity schemes
- exchange traded funds (ETFs)
- mortgage schemes
- agricultural schemes (e.g. horticulture, aquaculture, viticulture)
- horse-breeding and horse racing schemes
- time-sharing schemes
- serviced strata schemes.
Some marketplace lending arrangements (sometimes described as 鈥榩eer to peer lending arrangements鈥�) are structured as managed investment schemes. For more information on market place lending structures, read Information Sheet 213 Marketplace lending (peer to peer lending) products (INFO 213).
What types of investments are not managed investment schemes?
Generally, only investments that are 'collective' are considered managed investment schemes. Some examples of investments that are聽苍辞迟听managed investment schemes include:
- debentures issued by a body corporate
- barter schemes
- franchises
- direct purchases of shares or other equities
- schemes operated by an Australian bank in the ordinary course of banking business (e.g. term deposit).
Superannuation products such as regulated superannuation funds and approved deposit funds are not managed investment schemes.
We also provide relief to some arrangements, such as serviced strata schemes, from certain obligations under the Corporations Act. We provide this relief on a conditional basis. The purpose of the relief is to ensure that these arrangements are regulated in accordance with the current market environment for that arrangement.
ob体育鈥檚 role in relation to managed investment schemes
ob体育 is the regulator responsible for administering the Corporations Act and the聽Australian Securities and Investments Commission Act 2001 (ob体育 Act). These Acts set out the conduct and disclosure obligations of financial services providers, including operators of managed investment schemes.
ob体育鈥檚 role in relation to regulating managed investment schemes includes:
- undertaking proactive and reactive supervision and surveillance activities into operators鈥� conduct and disclosure obligations
- taking enforcement action in response to non-compliance with the laws administered by ob体育
- assessing Australian financial service (AFS) licence applications submitted by entities seeking to be operators of registered and unregistered managed investment schemes
- assessing applications for registration of managed investment schemes
- exercising ob体育鈥檚 administrative powers in relation to AFS licences and disclosure
- providing guidance to industry and policy advice to the Australian Government
- providing relief from provisions of the Corporations Act where necessary and appropriate.