Superannuation Industry (Supervision) Regulations 1994

PART 13 - MISCELLANEOUS  

Division 13.2 - Various operating standards  

REGULATION 13.17AA   RULES FOR CERTAIN INVESTMENTS BY FUNDS IN RELATED BODIES CORPORATE  

13.17AA(1)   [ " prescribed investment " ]  

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.

13.17AA(2)   [Trustee ' s written plan]  

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.

13.17AA(3)   [Excess amount to be specified]  

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.

13.17AA(4)   [Trustee ' s steps to be set out]  

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.

13.17AA(5)   [Trustee ' s obligation]  

The trustee must carry out the plan.

13.17AA(6)   [Prescribed investment must not be made]  

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.

13.17AA(7)   [Prescribed investment would exceed 5% of assets]  

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.