Do sole traders need to register a Managed Investment Scheme under Ch 5C?

No. Across every industry and every size band, the engine's answer for a sole trader is: no.

Do businesses with 1–5 employees need to register a Managed Investment Scheme under Ch 5C?

No (1–5 employees, turnover $100K–$1M).

When is "Register a Managed Investment Scheme under Ch 5C" due?

Before reaching threshold; ongoing.

Who must register a Managed Investment Scheme under Ch 5C?

The applicability test for Register a Managed Investment Scheme under Ch 5C (ASIC), computed across 35 industries, 9 business structures and 6 size bands.

Short answer: Only if

Applies only if you operate a managed investment scheme. Whether it applies turns on a fact that no industry, structure or size settles on its own.

What the obligation is

Schemes with 20+ retail members must be registered with ASIC as MIS.

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.

The applicability test

Applies only if you operate a managed investment scheme. Whether it applies turns on a fact that no industry, structure or size settles on its own.

How the regulator frames it: Schemes meeting MIS definition with 20+ retail members.

What triggers it: Crossing the 20-member retail threshold; complex MIS test.

Jurisdiction: Commonwealth law, so the test is the same in every state and territory.

Which industries are in or out

Outcome across the 35 industries Rules Mate maps (35 of 35: no).

The answer is the same in every industry: no. Industry does not change who must comply.

Business structure and size

Structure does not change the answer across all industries: for every structure the answer is "no".

Size does not change the answer across all industries: at every size band the answer is "no".

Worked examples

Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:

Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires a trigger outside this questionnaire.

When you need to check further

The engine shows this obligation as "check whether this applies" when a business has a trust and an AFSL or issues products. It then applies only if you operate a managed investment scheme. That fact is not something Rules Mate can infer from industry, structure or size.

What you must do, and when

When due: Before reaching threshold; ongoing.
Frequency: Ongoing
Evidence to keep: ARSN, compliance plan, RE AFSL with MIS authorisation, audit reports.
Status: Current
Priority: Critical

Penalty for not complying

Maximum penalty: Operating unregistered MIS is criminal; civil + criminal penalties for serious breach.

Criminal liability

Breaches can be prosecuted as criminal offences, not only civil contraventions.

Audit or assurance level

External audit. Authority: Corporations Act 2001 s601HG; ASIC Form 5111; RG 132.

Frequency: Annually; report within 3 months of the scheme's financial year end, lodged with ASIC on Form 5111.

Who can perform it: A registered company auditor, audit firm or authorised audit company. The auditor of the responsible entity's own financial statements may not act as the compliance plan auditor (s601HG(2)); another auditor from the same firm may (s601HG(2A)).

Obligations with the same applicability test

If this obligation applies to you, so does this one: the engine uses the same rule for each.

Comply with Managed Investment Trust (MIT) tax regime

Where it sits in the corpus

Rules Mate tracks 17 published obligations tagged "financial services", 12 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated critical priority and carries criminal liability, and is an ongoing duty.

Regulator, legislation and tools

Regulated by Australian Securities and Investments Commission.

ASIC: Corporate regulator administering the Corporations Act, financial services and credit licensing (AFSL/ACL), markets supervision, insolvency, and registries (ASIC and ABRS).

Australian Securities and Investments Commission

Corporations Act: The foundational federal Act for Australian corporate law.

Corporations Act 2001

Free tools that help with this obligation:

Run the compliance journeyAnswer a short questionnaire about your business and get the obligations that apply to you, with the reason each one applies.

Questions

Who must register a Managed Investment Scheme under Ch 5C?: Applies only if you operate a managed investment scheme. Whether it applies turns on a fact that no industry, structure or size settles on its own.
Do sole traders need to register a Managed Investment Scheme under Ch 5C?: No. Across every industry and every size band, the engine's answer for a sole trader is: no.
Do businesses with 1–5 employees need to register a Managed Investment Scheme under Ch 5C?: No (1–5 employees, turnover $100K–$1M).
When is "Register a Managed Investment Scheme under Ch 5C" due?: Before reaching threshold; ongoing.

Sources

Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.