We recognise that managed investment schemes are already subject to a range of compliance and governance obligations, we have also seen the significant impact the collapse of a scheme can have on investors such as Trio Capital and more recently the Sterling Income Trust.

The Joint Associations believe there are amendments that could be made to the current scheme to enhance the governance and compliance of schemes, as well as improve investor understanding and protections.

Importantly, this must include amending the current wholesale client tests, which have not been amended since first being implemented over two decades ago.