Contributory mortgage investments promoted by finance brokers will generally constitute managed investment schemes requiring registration under Ch 5C of the Corporations Act, because: (1) pooling of contributions occurs when the promoter deposits funds into a single trust account, regardless of whether investors know of or agree to the pooling; (2) the promoter's management activities cannot be attributed to the investors for the purpose of the day-to-day control exclusion; and (3) the Court has power under s 601EE to order winding up and appoint a receiver with power to sell mortgaged property, even where co-mortgagees hold as tenants in common and unanimity would otherwise be required.
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