The Australian Government has announced plans to tighten regulations around managed investment schemes following major fund collapses, aiming to strengthen investor protections and restore confidence in the financial system.
The federal government is planning significant reforms to tighten the rules governing managed investment schemes after the collapse of major funds such as Shield Master Fund and the First Guardian Master Fund, which together held about A$1.1 billion of Australians’ retirement savings and exposed weaknesses in the current regulatory framework.
These proposals, currently open for consultation, would expand the corporate regulator’s powers, require stronger governance practices and more robust risk management standards and close legal loopholes that were allegedly exploited by scheme operators.
Measures under consideration include mandatory reporting of suspicious superannuation switches to the Australian Securities and Investments Commission (ASIC), bans on certain related-party transactions, enhanced compliance requirements and stricter independent board oversight.
Assistant Treasurer Daniel Mulino emphasized that stronger oversight is necessary to prevent misconduct and protect investors’ savings, noting that high-profile collapses can damage confidence in the broader financial system. Consultation on the Treasury proposals closes in late February 2026.
