Commonwealth Consolidated Regulations

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Deciding details about common funds

             (1)  A licensed trustee company that is establishing a common fund commits an offence if, at the time of establishing the fund, it does not ensure that its Board makes a decision, in writing, about the following:

                     (a)  any limitation on the amount of money that will form the common fund;

                     (b)  the investment strategy for the common fund, including the following:

                              (i)  the class of investments in which the common fund may be invested;

                             (ii)  the procedure for valuing the investments;

                            (iii)  if the trustee company is to seek expert advice about proposed investments--the type of expert advice to be sought;

                     (c)  the amount of fees that are to be paid by:

                              (i)  the common fund for the provision of traditional trustee company services; and

                             (ii)  each account in the common fund;

                     (d)  the manner in which a withdrawal can be made from the common fund;

                     (e)  the procedure for auditing the common fund;

                      (f)  if the common fund is to have a limited life--the duration of the common fund;

                     (g)  if the common fund is to have a minimum amount that may be invested in the fund on account of each estate--the minimum amount.

Penalty:  50 penalty units.

             (2)  The licensed trustee company commits an offence if it does not:

                     (a)  within 14 days of making the decision:

                              (i)  send a copy of the decision to ASIC; and

                             (ii)  publish a copy of the decision on its website; and

                     (b)  if requested by a person entitled to request an annual information return under subregulation 5D.2.01(3), make a copy of the decision available to the person within 30 days of the request being received.

Penalty:  50 penalty units.

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