Commonwealth Consolidated Acts

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Arm's length transactions

             (1)  A licensed trustee company that operates a common fund that is not a registered scheme must not give a financial benefit in relation to the common fund to a related party.

Note:          Failure to comply with this subsection is an offence (see subsection 1311(1)).

             (2)  Subsection (1) does not apply if the financial benefit is given on terms that:

                     (a)  would be reasonable in the circumstances if the trustee company and the related party were dealing at arm's length; or

                     (b)  are less favourable to the related party than the terms referred to in paragraph (a).

             (3)  In this section:

"financial benefit" has a meaning that is affected by section 229.

"related party" has the meaning given by section 228, as if references in that section to a public company were references to a licensed trustee company.

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