Funda received a letter in the post from a company called Fast Cash Ltd stating:

"Do you want to be a millionaire??? Come along to a free seminar this Saturday to hear Warren Suspect share his secrets with you about how to make millions of dollars."

The seminar promoted a range of investment strategies where investors put in $100 per week with the pooled amount being managed by Fast Cash Ltd.

Funda invested in the proposed scheme especially after she discovered that other people (around 200) also invested in the scheme.

However, she also discovered that the scheme is not registered.

When she raised this issue with Fast Cash Ltd, she was advised that the scheme did not require to be registered under the Corporations Act 2001 (Cth)

1. Does the scheme need to be registered? Explain why.
2. What are the consequences of breaching the requirement of registration?

I know that breaching the registration requirement of a managed investment scheme falls under a contravention of S601ED(5) of the corporations Act 2001, therefore allowing the court the ability to make any ordersit considers appropriate for the winding up of the scheme.

I was wondering if a tutor could elaborate on when and why a scheme needs to be registered.