The discretion under s 601EE(2) as to who should wind up an unregistered managed investment scheme requires balancing all relevant factors including the conduct of the business, potential conflicts of interest, investor wishes, comparative costs, and the public interest in investor protection. Transfer of an unregistered scheme to a registered scheme can constitute winding up provided the existing security is transferred or realised and each investment is repaid or otherwise dealt with. Where schemes involve large investments, longstanding defaults, promotion after awareness of illegality, or conflicts of interest, independent liquidators should be appointed; for smaller or performing schemes with strong investor support, the operator may be permitted to wind up subject to supervision.
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