Enhancing oversight and governance of managed investment schemes
Submission Date: 5 March 2026
The Law Council of Australia provided a submission to Treasury in response to the consultation paper issued on 10 February 2026 (the Consultation Paper) relating to proposals to enhance the regulatory framework for managed investment schemes (MIS or scheme) to provide, if possible, greater consumer protection for investors in MIS following the costly collapse of the Shield Master Fund and First Guardian Master Fund, which were structured as MIS.
This submission has been prepared by members of the Business Law Section’s Financial Services Committee, and the Legal Practice Section’s Superannuation Committee, collectively, referred to throughout, as the Committees.
In this submission the Committees have focused on legal aspects of the proposals in the Consultation Paper (Proposals) in which members of the Committees have expertise or direct experience and wish to comment. Other stakeholders may be more suitably placed to comment on other matters canvassed in the Consultation Paper.
In this submission, the Committees consider each of the Proposals through the lens of whether they would or could have helped to prevent the consumer harm that occurred in the Shield and First Guardian Master Fund cases. Consideration is also given to whether the changes would be “good law” in the sense that they would produce a net regulatory benefit. In short, some of the Proposals would be beneficial and others would not, for the reasons set out below.
Last Updated on 10/03/2026
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