A responsible entity continues to 'operate' a managed investment scheme for the purposes of s 601FN even where ASIC has partially suspended its financial services licence, provided it continues to perform some activities in relation to the scheme. Reg 5C.2.02 of the Corporations Regulations may not validly authorise applications for appointment of a temporary responsible entity beyond the circumstances provided for in s 601FN, as s 601QB limits the regulation-making power to modifications of provisions 'relating to securities'. The threshold of 'necessity' under s 601NF(1) is met where administrators of a responsible entity have demonstrated a preparedness to prefer their own commercial interests over those of fund members, including through calling invalid meetings, providing misleading information, and conducting litigation in a combative and partisan manner. Sections 601FL and 601FM require a genuine subjective intention — the responsible entity must actually want to retire (s 601FL) and members must actually want to remove the responsible entity (s 601FM) — for a meeting to be validly called under those provisions.
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