Document ID: chunk:federal_register_of_legislation:F2019L00648:body:0:p7
Version: federal_register_of_legislation:F2019L00648
Segment Type: other
Provision Reference: 
Character Range: 16452–19412

sub-custodian does not reside in Australia or the sub-custodian's obligation to make payments or transfer assets to the locally incorporated insurer may be performed outside Australia;

       (k)          the asset held by the custodian is an interest in, or in relation to, an asset held by a sub-custodian, and the asset held by the sub-custodian would not be an asset in Australia if it were held directly by the locally incorporated insurer (either because it would be excluded under another provision of this Prudential Standard or because it would not otherwise be an asset in Australia within the meaning of paragraph 28(a) of the Act); or

       (l)            the custodian has the right to suspend or delay the transfer or realisation of the asset held by the custodian pending sale of any asset outside Australia.

   Paragraphs (a) and (j) do not apply to an asset that is real property in Australia.[10]

Interests in managed investment schemes

20.         An interest of a locally incorporated insurer in a managed investment scheme is excluded from being an asset in Australia if:

       (a)          the responsible entity does not reside in Australia;

       (b)          an agent holds the property of the scheme (scheme property) for the responsible entity and the agent does not reside in Australia;

       (c)          under the scheme, the responsible entity or agent has the right to suspend or delay the redemption of the unit or investor's entitlement pending sale of any scheme property outside Australia;

       (d)          any amounts payable to the locally incorporated insurer under the scheme are payable outside Australia; or

       (e)          the locally incorporated insurer cannot enforce its rights in relation to the managed investment scheme in an Australian court.

Certain interests in trusts

21.         An equitable or a beneficial interest of a locally incorporated insurer in a trust (not being an interest arising where legal title is held by a custodian or an interest in a managed investment scheme) is excluded from being an asset in Australia if:

       (a)          the trustee does not reside in Australia;

       (b)          under the trust deed, the trustee has the right to suspend or delay the redemption of a unit or trust property pending sale of any of the trust's assets outside Australia;

       (c)          any amounts payable to the locally incorporated insurer under the trust are payable outside Australia; or

       (d)          the locally incorporated insurer cannot enforce its rights against the trustee in an Australian court.[11]

22.         An equitable or beneficial interest of a locally incorporated insurer in a trust (not being an interest arising where legal title is held by a custodian) is also excluded from being an asset in Australia if:

       (a)          the interest is a proprietary interest in a particular asset or particular assets