Document ID: chunk:federal_register_of_legislation:F2022C00868:reg:55:p1
Version: federal_register_of_legislation:F2022C00868
Segment Type: reg
Provision Reference: reg 55 (pt 1/4)
Character Range: 112250–115072

55  Definitions
Note: Expressions have the same meaning in this instrument as in the Corporations Act 2001 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.
  For these rules:
assessed as having an acceptable risk, in relation to a holding of assets and arrangements by a passport fund, means when the operator has performed the following within a period of no more than 1 month before the most recent acquisition of the asset or arrangement and subsequent to any event that gives the operator reason to doubt the previous assessment performed:
 (a) assessed the creditworthiness of the issuers, guarantors or counterparties of the assets or arrangements in accordance with written policies and procedures which include having regard to independent sources of information; and
 (b) assessed the risk for members of the passport fund of holding the proposed concentration of the assets given the creditworthiness of the issuers, guarantors or counterparties; and
 (c) concluded there was no disproportionate risk relative to the risks associated with the passport fund's investment strategy; and
 (d) documented the assessments and the reasons for the conclusion.
assessed central clearing counterparty: see section 27.
benchmark fund means a passport fund that has publicly disclosed that it has an investment strategy of seeking to achieve returns that meet or exceed an eligible index.
business day means a day that banks in the place are generally open for business.
CIS: see collective investment scheme.
collective investment scheme or CIS means a scheme or an arrangement that is intended to have the following features:
 (a) at least 2 persons or a person acting on behalf of more than one beneficiary or group of beneficiaries (members) contribute money or money's worth for the right to the benefits produced by the scheme;
 (b) the contributions are pooled to produce financial benefits or an interest in property for the contributors or persons directly or indirectly acquiring their rights from the contributors (members);
 (c) not all the members, in their capacities as members take part in day to day management of the scheme;
 (d) the pool is managed as a whole for the benefit of the members collectively.
conflict: includes an actual or potential conflict.
constituent document: see section 4.
control: see section 57.
custodian: see section 13.
depository receipt over gold: see section 22.
derivative: see section 25.
eligible index: an index is an eligible index for a passport fund if:
 (a) it predominantly relates to financial assets or commodities that are regularly traded; and
 (b) it has a clearly defined objective or the market or sector which it aims to represent is clearly defined; and
 (c) it represents a reasonable benchmark for a market or market sector