AustraliaMy managed investment scheme's responsible entity is acting in their own interest, not mine. What can I do?
You can complain to ASIC, request a meeting of members, or apply to the court for removal of the responsible entity if it’s failing its legal duties.
What the Law Says
The Corporations Act sets strict duties on the responsible entity (RE) of a managed investment scheme to act in the best interests of members — not itself.
Under the Corporations Act 2001 (Cth), the responsible entity must exercise its powers and discharge its duties with care and diligence, in good faith, and in the best interests of scheme members — not its own interests.
Section 601FC(1) says the RE 'must act honestly and exercise the same degree of care and diligence as a reasonable person would exercise in the same circumstances'. Section 601FC(2) adds that the RE 'must act in the best interests of the members of the scheme'.
If the RE fails these duties, members may seek remedies including removal of the RE, compensation, or court orders to stop improper conduct.
Statutory TextThe responsible entity must act honestly and exercise the same degree of care and diligence as a reasonable person would exercise in the same circumstances.
— Corporations Act 2001 (Cth), s. 601FC(1) — Duties of responsible entities
Statutory TextThe responsible entity must act in the best interests of the members of the scheme.
— Corporations Act 2001 (Cth), s. 601FC(2) — Duties of responsible entities
What to Do
Lodge a formal complaint with ASIC using Form 289 (Complaint about a financial service provider)
Request, in writing, that the responsible entity call a meeting of scheme members — they must do so within 30 days if requested by members holding at least 5% of voting rights
Seek independent legal advice about applying to the Federal Court or Supreme Court for orders — including removal of the RE or compensation — under s. 601FC and s. 206C
Review the scheme’s constitution and product disclosure statement (PDS) for additional member rights and dispute resolution processes
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.