Corporations Regulations 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.4 - CORPORATE FINANCE AND FINANCIAL REPORTING FOR CCIVs  

Division 1 - Shares  

REGULATION 8B.4.10  

8B.4.10   CROSS INVESTMENT BETWEEN SUB-FUNDS OF A CCIV - RESTRICTION FOR CIRCULAR CROSS-INVESTMENT  

For the purposes of subsection 1230R(1) of the Act, a CCIV must not acquire, in respect of a sub-fund of the CCIV (the acquiring sub-fund ), one or more shares referable to another sub-fund of the CCIV (the issuing sub-fund ) if, at the time of the proposed acquisition, the assets of the issuing sub-fund:

(a)    directly include; or

(b)    indirectly include, through one or more interposed sub-funds of the CCIV;

one or more shares referable to the acquiring sub-fund.

Note: Paragraph (b) applies if, for example, at the time of the proposed acquisition:

(a) the assets of the issuing sub-fund include shares referable to sub-fund C of the CCIV; and

(b) the assets of sub-fund C include shares referable to sub-fund D of the CCIV; and

(c) the assets of sub-fund D include shares referable to the acquiring sub-fund.

In this example, sub-funds C and D are each interposed sub-funds.