Comment on proposed changes to the Legal Profession Uniform General Rules - Managed Investment Schemes

​21 May 2018

From 1 July 2018, new legislation on Managed Investment Schemes (MIS) is expected to commence in NSW and Victoria. The proposed amendment of s 258 of the Uniform Law will restrict the involvement of law practices in the promotion and operation of mortgage practices and other MIS. The new law also affects the provision of legal services in connection with mortgage practices.

The draft Uniform General Rules provide important details on the operation of s 258 of the Uniform Law, including an explanation of a 'related entity', 'financial institutions', 'mortgages' and a test of 'substantial interest' for an associate of a solicitor who would be taken to be engaging in a MIS.

The draft Uniform General Rules have been reviewed by Designated Legal Regulatory Authorities (DLRAs) and are now available for public consultation for 30 days in accordance with s 425(3)(b) of the Uniform Law. 

The LSC invites public comment on the draft Rules and will consider all reasonable submissions duly made and received.  The draft Rules are available to view here.

The LSC also invites public comment on the draft Information Sheet. The draft Information Sheet includes Frequently Asked Questions that we expect but we ask that you submit any further questions that you anticipate from the legal profession and the public.  The LSC will publish a final Information Sheet in July 2018 to assist the profession and the public to understand the changes relating to MIS. 

Submissions may be forwarded to submissions@legalservicescouncil.org.au by close of business 20 June 2018.