Managed Investment Scheme Briefings

Written by Claude Haiku 4.5 from the extracted text on 16 May 2026. It can miss or misread redacted and scanned pages. Check the source before relying on it.

A ministerial submission briefed the Assistant Treasurer and Minister for Financial Services on regulatory failures in two major managed investment scheme (MIS) collapses: Shield and First Guardian. Approximately 5,800 investors lost around $273 million in Shield (which had received $480 million), while 6,000 investors in First Guardian faced potential losses of $446 million from a $570 million investment. Both schemes employed a coordinated model using lead generators and financial advisers who recommended rolling superannuation into SMSFs or wraps before investing in related, subsequently failed MISs. ASIC initiated enforcement action, but Treasury warned the Government would face pressure to strengthen MIS regulation and noted that existing regulatory frameworks and the Compensation Scheme of Last Resort may prove inadequate. The submission identified policy gaps including the exemption from anti-hawking provisions for financial advisers facilitating these recommendations.