Semester 2 Investment Laws - Welcome!!

Hi Everyone,

It was good to see all of you there last week and looking forward to this evening. The assignments ought to be up soon and I will certainly brief you on this.

I found some interesting sites on MIS:-

This is a very informative Australian site:

http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Managed%20investment%20schemes

http://www.fido.gov.au/fido/fido.nsf/byheadline/Investing+in+managed+investment+schemes?opendocument


And our every "dependable" wikipedia -
http://en.wikipedia.org/wiki/Collective_investment_scheme

Here is a cut and past from my Sem 1 posting in March 2010 -

In Lecture 5 - we introduced to you a kind of financial product known as Managed Investments Schemes. (MIS) In Singapore we refer to these schemes as the Collective Investment Schemes. These schemes allow a collective effort by groups of people to pool their resources to professional and trusted entities to managed their resources to achieve financial gains. An example would be Unit Trust. Unit Trust has been extremely robust in the Singapore Financial markets offering investors a huge array of products from Tech Stocks to Property Stocks to REITS.

MIS or CIS however has a potential risk in that it depends largely on the fundamental principle of "trust". In this sense the investor trusts their monies with a central entity to manage their monies for them. If this central entity (known as the Responsible Entity) is not trustworthy, the investors may be at risk. So rather than leaving it to market forces to determine this, the laws have taken to regulating this segment.

You will therefore be required to think about -

1) What is a trust and why and how has the common law dealt with this issues;

2) What is a MIS - how is it defined and why is it defined like this;

3) Who is the Responsible Entity - what qualities does her posses and why?

4) What are the registration requirements and why do you think these are required.

5) What is the MIS is not registered?


Its really about regulating MIS. MIS is important - we need it and at the same time we need to regulate it. Do you think however that our laws have done enough or too much in their regulating efforts?


All up to you now.

SK