The Shane Warne Foundation has been cleared of any unlawful conduct by Consumer Affairs Victoria after the watchdog investigated the charity over its finances.

Consumer Affairs said it looked into the foundation run by cricket legend Shane Warne following "inconsistent and late reporting about its financial affairs".

Its director, Simon Cohen, said after an extensive investigation, no further action would be taken.

"The inquiries demonstrate non-compliance by the foundation with some provisions of the [Fundraising] Act, in particular, requirements to submit annual accounts in a timely manner," he said in a statement.

"Importantly, the inquiries have not otherwise found evidence of unlawful conduct or a failure on the part of the foundation to give the net proceeds of appeals to named beneficiaries."

Warne welcomed the news and thanked people for their support.

"As expected CAV and the Commonwealth charity regulators have cleared the Shane Warne Foundation of any wrongdoing besides one late lodging of annual accounts by the due date in 2015," he said in a Facebook post.

"The foundation, myself, management, ambassadors and the board have always maintained that nothing inappropriate had occurred and now it's official after these thorough investigations."

Charity's expenses 'high compared to income'

An independent review by KPMG said it was unable to draw conclusions on the foundation's cash donations.

Mr Cohen said from 2005-2010 the foundation consistently reported a high proportion of its funds, about 70 per cent on average, to its beneficiaries.

"Over recent years, however, a low proportion of funds raised have been distributed by the foundation to beneficiaries," he said.

"A cause of this was the foundation's high level of expenses when compared to its income."

Fundraising guidelines require a charity that distributes less than 35 per cent of the funds raised to show cause as to why it should be registered.

Mr Cohen said he sent a letter asking the foundation to wind up its activities in December, given the fall in money distribution.

The Foundation announced earlier this month that it would stop operating.

"The Foundation has also undertaken to make a final distribution of all remaining fundraising proceeds to beneficiaries in line with the objects of the foundation," Mr Cohen said.