Document ID: chunk:federal_register_of_legislation:F2023C00841:body:0:p3
Version: federal_register_of_legislation:F2023C00841
Segment Type: other
Provision Reference: 
Character Range: 5373–8111

(i) other financial products;
(ii) an asset;
(iii) a rate (including an interest rate or exchange rate);
(iv) an index;
(v) a commodity.
              fund of hedge funds means a registered scheme:
(a) that is promoted by the responsible entity using the expression and as being a "fund of hedge funds"; or
(b) in relation to which at least 35% of scheme property is invested in a way that gives rise to economic interests in one or more of the following:
(i) a hedge fund; or
(ii) a managed investment scheme or body, whether operating or carrying on business in or outside this jurisdiction, that would be a hedge fund if the scheme or body were a registered scheme; or
(iii) a sub-fund of a CCIV; or
(c) that is promoted by the responsible entity on the basis that scheme property will be invested in a way so that paragraph (b) will apply to it.
              hedge fund means a registered scheme that:
(a) is promoted by the responsible entity using the expression and as being a "hedge fund"; or
(b) is covered by two or more of the following:
(i) the scheme:
(A) deals in financial products in accordance with investment strategies intended to produce a return with low correlation (including no correlation) to each of the prescribed published indexes or any combination of them; or
(B) acquires an economic interest in financial products through:
(I) three or more interposed entities; or
(II) two or more interposed entities if at least one of the entities is an entity that is formed or incorporated outside this jurisdiction or under laws other than Australian laws;
                         where the responsible entity of the scheme or an associate has the capacity to control:

(III)  the disposal of the products; or

(IV) two or more of the interposed entities;

                     (For the purposes of sub-subparagraph (B), the calculation of the number of interposed entities through which the scheme acquires an economic interest in a financial product is to be performed by reference to each separate vertical stream of interposed entities.

                         Note:   For example, where a head scheme directly invests in schemes A and B, and both schemes A and B directly invest in scheme C, there are 2 vertical streams, with each stream comprising 2 interposed entities. The first vertical stream comprises schemes A and C. The second vertical stream comprises schemes B and C. There is no single vertical stream comprising schemes A, B and C.);

(ii) the scheme acquires any of the following for the dominant purpose of making a financial investment:

(A) a credit facility;

(B) a margin lending facility;

(C) a financial product (other than partly-paid securities) the acquisition of which is likely to