Starting a managed investment scheme

What are managed investment schemes?
Registering a scheme
Compliance plans
Running a managed investment scheme
More information

What are managed investment schemes?
Managed investment schemes are also known as 'managed funds', 'pooled investments' or 'collective investments'. Generally in a managed investment scheme:

people are brought together to contribute money to get an interest in the scheme ('interests' in a scheme are a type of 'financial product' and are regulated by the Corporations Act 2001)
money is pooled together with other investors (often many hundreds or thousands of investors) or used in a common enterprise
a 'responsible entity' 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 investments. Some of the popular managed investment schemes that may be offered include:

cash management trusts
property trusts
Australian equity (share) trusts
many agricultural schemes (eg horticulture, aquaculture, commercial horse breeding)
international equity trusts
some film schemes
timeshare schemes
some mortgage schemes
actively managed strata title schemes.

What types of investments are NOT managed investments schemes?
Generally, only investments that are 'collective' are managed investment schemes. Some examples of investments that are not managed investments schemes include:

regulated superannuation funds
approved deposit funds
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 (eg term deposit).

For information about investing in managed investment schemes go to our consumer website, FIDO

Registering a managed investment scheme
New managed investment schemes must be registered with us before they can operate. To register a scheme the proposed responsible entity must be:

a registered Australian public company, and
hold an Australian financial services (AFS) licence authorising the responsible entity to operate the scheme.

If the proposed responsible entity does not hold an AFS licence authorising it to operate the scheme, it should ensure an application for an AFS licence, or variation of an existing licence, has been submitted to us before applying for registration of the scheme.

How to apply for an AFS licence or variation of a current licence

For more information read:

Regulatory Guide 130 Managed Investments: Licensing [formerly PS 130].

How to register a scheme
Download a copy of form 5100.

On the registration form you will be asked to describe how scheme funds will be applied and what investment strategies are likely to be adopted.

Scheme kinds identified for licensing purposes are:

financial assets - this category includes cash, fixed interest securities, equities and related securities, property securities, and schemes that invest in interests in managed investment schemes
derivatives
mortgages
member discretionary master funds and similar schemes
primary production - these schemes will be further categorised according to the type of scheme eg horticulture, aquaculture and forestry
film schemes
time-sharing schemes

To register a scheme, make sure you send us:

The completed application form and fee payment of $2010

A copy of the scheme's constitution (as defined by s601GA).
For more information read Regulatory Guide 134 Managed Investments: Constitutions [formerly PS 134]

A copy of the scheme's compliance plan (as defined by s601HA and signed in accordance with s601HC).
For more information read:

	- our compliance plan commentaries, and
	- Regulatory Guide 132 Managed investments: Compliance plans [formerly PS 132]
	- Regulatory Guide 133 Managed investments: Scheme property arrangements [formerly PS 133]

A statement signed by the directors of the proposed responsible entity using ASIC Form 5103 that:
(a) the scheme's constitution complies with s601GA and 601GB; and
(b) the scheme's compliance plan complies with s601HA.

An annexure that cross references the contents of a constitution required by s601GA and s601GB to the equivalent provisions in the scheme's constitution.

An extra photocopy of the completed application and each of the above documents.

Send these to:

Australian Securities & Investments Commission,

GPO Box 9827

In your capital city.

Compliance plans
Regulatory Guide 132 Managed investments: Compliance plans [formerly PS 132] gives you guidance on how to prepare a compliance plan for a managed investment scheme. It includes, as an annexure, illustrative guidance on what might be included in a compliance plan.
Download a copy of [RG 132] as a PDF file

Commentaries
You'll prepare more effective compliance plans after you've read our commentaries, which summarise the better plans we've received over the last two years from the managed investments industry. Read our comments and examples when preparing your next plan. Download a copy of our commentaries on compliance plans for:

Agricultural industry schemes (PDF file, 594 KB)
Financial asset schemes (PDF file, 695 KB)
Contributory mortgage schemes (PDF file, 785 KB)
Pooled mortgage schemes (PDF file, 772 KB)
Property schemes (PDF file, 612KB)

We released these commentaries on 15 April 2004. For more information, read our Information release 04-15.

Auditing compliance plans

More information
Running a managed investments scheme
Closing a managed investments scheme
What we're telling consumers about managed investment schemes on our consumer website, FIDO
Frequently asked questions about managed investment schemes
Financial services homepage

ASIC Website: Printed 07/04/2008

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