Register a Managed Investment Scheme under Ch 5C
Schemes with 20+ retail members must be registered with ASIC as MIS.
Who must comply
Schemes meeting MIS definition with 20+ retail members.
What triggers it
Crossing the 20-member retail threshold; complex MIS test.
When due
Before reaching threshold; ongoing.
Evidence required
ARSN, compliance plan, RE AFSL with MIS authorisation, audit reports.
Max penalty
Operating unregistered MIS is criminal; civil + criminal penalties for serious breach
Who must comply with this? The applicability test by industry, business structure and size.
Summary
Chapter 5C of the Corporations Act requires schemes with 20+ retail members to be registered as Managed Investment Schemes. Registration requires a Responsible Entity (RE) with the right AFSL authorisations, compliance plan + compliance committee, plus scheme constitution.
Enforced by
Source legislation
Entity types
Topics
Related
- CWLTHReport reportable situations to ASIC within 30 days (RG 78)AFSL/ACL holders must report reportable situations within 30 calendar days of becoming aware.
- CWLTHComply with Design and Distribution Obligations (DDO)Issuers and distributors of retail financial products must have a Target Market Determination (TMD) and distribute consistently with it.
- CWLTHBan on conflicted remuneration (FOFA)AFSL holders and representatives must not accept conflicted remuneration in connection with retail financial product advice.
- CWLTHLodge a prospectus for offers requiring disclosureOffers of securities to retail investors require a prospectus or OIS lodged with ASIC.
- CWLTHBest interests duty for financial advisers (s 961B-G)Personal advisers must act in client's best interests + meet related obligations.
- CWLTHDesign and Distribution Obligations (DDO) — RG 274Issuers + distributors of retail financial products bound by DDO from 5 October 2021.
Frequently asked questions
- Who must comply with a Managed Investment Scheme under Ch 5C?
- Schemes meeting MIS definition with 20+ retail members.
- What triggers a Managed Investment Scheme under Ch 5C?
- Crossing the 20-member retail threshold; complex MIS test.
- When is a Managed Investment Scheme under Ch 5C due?
- Before reaching threshold; ongoing.
- What is the maximum penalty for a Managed Investment Scheme under Ch 5C?
- Operating unregistered MIS is criminal; civil + criminal penalties for serious breach
- What evidence is required for a Managed Investment Scheme under Ch 5C?
- ARSN, compliance plan, RE AFSL with MIS authorisation, audit reports.
Source: https://www.asic.gov.au/regulatory-resources/financial-services/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.