Superannuation Industry (Supervision) Regulations 1994
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.
View history note
Hide history noteIf 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.
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