BALDWINS • FoodLegal

Australian Lawyers and Consultants

New Public Investment Laws

July 1998

Despite warnings from leading academics that the proposed Managed Investments Act 1997 could result in lower levels of consumer protection, the Federal Government has proceeded with the Act and it came into force on 1 July 1998.

Previously, the legal interest in any pool of managed investments would have been held by a "trustee", while the "manager" would manage the investments. Under the new law, this dual structure disappears, and such investments will be both held and managed by the "responsible entity" on behalf of the investors. A "responsible entity" must be a public company which holds a securities dealers licence. Managed investment Schemes (MIS) will replace prescribed interests, and only a "responsible dealer" can register and run a MIS. Every MIS must have a compliance plan that conforms with the Corporations Law.

For further information, contact Joe Lederman at BALDWINS, Australian Lawyers & Consultants.

Return to the Corporations Law Archive.