Corporations Regulations 2001

CHAPTER 5D - LICENSED TRUSTEE COMPANIES  

PART 5D.2 - POWERS ETC OF LICENSED TRUSTEE COMPANIES  

Division 2.2 - Common funds  

REGULATION 5D.2.05   DECIDING DETAILS ABOUT COMMON FUNDS  

5D.2.05(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: 500 penalty units.

5D.2.05(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: 500 penalty units.

5D.2.05(3)    

A person commits an offence if the person is involved in a contravention of subregulation (1) or (2) by a licensed trustee company.

Penalty:

(a) for an individual - 50 penalty units; and

(b) for a body corporate - 500 penalty units.