The discussion paper is a response to the request from the Parliamentary Secretary to the Treasurer, the Hon. David Bradbury MP, for the Corporations and Markets Advisory Committee to consider a range of matters concerning managed investment schemes (“MIS”). The discussion paper proposes: (i) that all agreements entered into by a Responsible Entity (“RE”) as principal in operating an MIS be clearly identified and recorded. This would complement the obligation on an RE to keep separate the property of each MIS; (ii) that property of an MIS be used only for the purposes of that MIS. This would prevent an RE from using the property of one MIS to pay debts incurred by the RE in operating another MIS; and (iii) to give creditors of an MIS direct rights against scheme property, similar to the rights of creditors of a company. This would represent a change from the current position, which requires creditors to go through the RE for payment (through a process known as subrogation).