Corporations and Other Legislation Amendment (Trustee Companies and Other Measures) Act 2011 (24 of 2011)

Schedule 1   Trustee companies

Corporations Act 2001

8   At the end of Division 3 of Part 5D.2 of Chapter 5D

Add:

601SCD 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.