Submission – Enhancing oversight and governance of managed investment schemes

SMC welcomes Treasury’s consultation on enhancing oversight and governance of managed investment schemes (MIS) as an important first step toward strengthening consumer protections in the higher‑risk parts of the superannuation system. Strengthening MIS oversight—particularly around governance, conflicts management, financial resilience, liquidity practices and ASIC’s visibility of emerging risks—is therefore essential not only for market integrity but for protecting members from unsuitable investments, loss of capital, and destabilising shocks to their retirement savings.
While these measures are much needed, SMC recognises that they represent only one part of the broader consumer‑protection challenge. Treasury’s work must continue as part of an integrated, comprehensive system‑wide strategy that addresses the root causes of member harm—including inappropriate distribution practices, aggressive or misleading switching inducements, high‑risk lead‑generation models, and advice pathways that place members into products inconsistent with their needs and risk profile.