SMSFA supports MIS review

MIS review

The SMSF Association has welcomed the government’s announcement a review into the regulatory framework for MIS will be performed this year.

The SMSF Association has applauded the federal government’s decision to have Treasury conduct a review of the regulatory framework regarding managed investment schemes (MIS).

“We welcome this announcement and look forward to making a submission. Over the years self-managed super fund members have lost millions of dollars via failed MIS, so any review and subsequent recommendations that strengthen investor protections must be a positive not only for SMSFs but the entire superannuation sector,” SMSF Association chief executive Peter Burgess said.

“Certainly, we believe it’s appropriate for the review to consider reform options surrounding wholesale investor thresholds and whether certain MIS should be permitted to be marketed to retail clients.”

Burgess also identified several other issues associated with these investment vehicles requiring attention from the industry body’s perspective.

“Other issues that need addressing include examination of the classes and types of MIS and, where applicable, consider changes to the regulation of certain classes of MIS and the regulatory framework, including the approval of product disclosure statements,” he noted.

“The gaps between state and commonwealth regulations, including those identified in the Sterling Income Trust Inquiry – its recommendations were handed down in February 2022 – also need to go under the microscope,” he said.

He took the opportunity to encourage the government to reassess the terms of reference specified for the review.

In particular, he suggested Treasury should consider whether MIS should be included in the compensation scheme of last resort (CSLR) for retail investors.

The bills enabling the CSLR to be established were recently tabled in parliament.

The government announced Treasury’s review of the MIS regulatory framework last week.

According to Assistant Treasurer and Financial Services Minister Stephen Jones, the review will examine whether the regulatory framework is fit for purpose, identify potential gaps and consider what enhancements can be made to reduce undue financial risk for investors.

Copyright © SMS Magazine 2024

ABN 43 564 725 109

Benchmark Media

Site design Red Cloud Digital