Under the FMC Act, a non-restricted and registered managed investment scheme (MIS) must have a licensed manager.
See our transition information sheets below for MIS managers. These provide an outline of the transition timeline and examples of the key activities and indicative timings for each step of the transition.
In general terms, a MIS pools money from a number of investors who rely on the investment expertise of the scheme manager.
The definition in the Act (section 9) is broad and includes collective investment schemes, and most schemes involving participatory securities under the Securities Act 1978.
These schemes can be structured in different ways, and may invest in a wide range of investments. They can be open-ended (offered continuously) or close-ended (more equity-like). Examples include:
A discretionary investment management service (DIMS), insurance contract, or a scheme that only involves managing separate and direct interests in underlying property are not considered to be a MIS.
You need a licence if you are the appointed or designated manager of a non-restricted and registered MIS.
Specifically, you need a licence if you intend to: