Document ID: chunk:federal_register_of_legislation:F2021C00656:body:0:p6
Version: federal_register_of_legislation:F2021C00656
Segment Type: other
Provision Reference: 
Character Range: 13671–16732

securities immediately after the time of investment.
       Foreign quoted securities
       (9) The total value of investments in foreign quoted securities must comprise no more than 10% of the value of the managed investment fund's net assets at any time.
       Investments issued by 20 different issuers
       (10) The investment must be maintained in securities issued by 20 or more different issuers from a time that is 3 months after the first investment is made by the managed investment fund.
       Percentage of investments issued by a particular issuer
       (11) An investment in securities issued by a particular issuer must result in no more than 10% of the value of the managed investment fund's net assets being held immediately after the time of investment in securities issued by that issuer.
       Auditing requirements
       (12) Beginning financial year 2021–22, an annual audit is required for the emerging companies investment components of the complying investment framework.

10 Balancing investments
       General
       (1)A balancing investment is an investment of an investor's funds in accordance with this section.
       (2)The investment must:
       (a) be invested through one or more managed investment funds;
       (b) comply with the requirements of this section at any time.
       Permitted investments
       (3)The investment may be made only in one or more of the following:
       (a) securities of any of the following bodies, if the body is quoted on an Australian securities exchange:
           (i) a company;
           (ii) a real estate investment trust;
           (iii) an infrastructure trust;
(b) bonds or notes issued by:
 (i) a company that is quoted on an Australian securities exchange; or
 (ii) a wholly owned subsidiary of a company mentioned in subparagraph (i), if the subsidiary is incorporated in Australia; or
 (iii) a company incorporated in Australia, or a registered foreign company, if the bonds or notes are rated as investment grade by a credit rating agency that holds an Australian financial services licence.
(c) annuities issued by a company registered under section 21 of the Life Insurance Act 1995, if the annuity does not repay capital during the period the visa is in effect;
(d) Australian real property (but see section 11);
(e) cash held by Australian ADIs, including certificates of deposit, bank bills and other cash like instruments (but see section 11);
(f) derivatives (but see section 11).
       Auditing requirements
       (4)Beginning financial year 2021–22, an annual audit is required for the balancing investment components of the complying investment framework.

11 General requirements
       General
       (1)The requirements under this section apply in relation to an investment made through a venture capital fund or a managed investment fund.
       Australian financial services licence requirements
       (2)A person covered by subsection (3) in relation to the investment must:
       (a) hold, or be otherwise covered by, an Australian financial