Commonwealth Consolidated Regulations

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SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 - REG 13.17AA

Rules for certain investments by funds in related bodies corporate

             (1)  In this regulation:

"prescribed investment " , in relation to a fund, means an investment (other than a deposit or a life insurance policy) in, or a loan to, a related body corporate that is an ADI, or a life insurance company.

             (2)  If at the end of a year of income ( the current year of income ) the value of a fund's prescribed investments exceeds 5% of the total assets of the fund, the trustee of the fund must prepare a written plan in accordance with subregulations (3) and (4) as soon as practicable after the end of the current year of income.

             (3)  The plan must specify the amount ( the excess amount ) by which, at the end of the current year of income, the fund's prescribed investments exceed 5% of the fund's total assets.

             (4)  The plan must set out the steps that the trustee proposes to take in the year of income following the current year of income to ensure that:

                     (a)  some of the fund's prescribed investments are disposed of during the year of income following the current year of income; and

                     (b)  the value of the prescribed investments disposed of is equal to or greater than the excess amount.

             (5)  The trustee must carry out the plan.

             (6)  If the total value of the fund's prescribed investments is more than 5% of the total value of the fund's assets, the trustee of the fund must not make a prescribed investment.

             (7)  If the making of a prescribed investment would result in the total value of the fund's prescribed investments exceeding 5% of the total value of the fund's assets, the trustee of the fund must not make the prescribed investment.



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