Document ID: chunk:federal_register_of_legislation:C2025C00134:section:71:p2
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 71 (pt 2/4)
Character Range: 505273–507758

which the fund belongs.
  For this purpose, a class of assets may consist of, but is not limited to, assets that are investments in entities that undertake, or do not undertake, specified activities.

Widely held trust
 (1A) For the purposes of paragraph (1)(h), a trust is a widely held unit trust if:
 (a) it is a unit trust in which entities have fixed entitlements to all of the income and capital of the trust; and
 (b) it is not a trust in which fewer than 20 entities between them have:
 (i) fixed entitlements to 75% or more of the income of the trust; or
 (ii) fixed entitlements to 75% or more of the capital of the trust.
For this purpose, an entity and the Part 8 associates of the entity are taken to be a single entity.

Agreements
 (2) If:
 (a) apart from this subsection, an asset of a fund consists of a loan, an investment or an asset that is subject to a lease or lease arrangement, other than an in‑house asset; and
 (b) the loan, investment, lease or lease arrangement was made as a result of entering into or carrying out an agreement; and
 (c) any of the persons who entered into or carried out the agreement was aware that the result of carrying out the agreement would be that:
 (i) a loan would be made to, an investment would be made in, or an asset would be subject to a lease or lease arrangement with, a related party of the fund; or
 (ii) an investment would be made in a related trust of the fund;
then the asset is taken, for the purposes of this Part, to be a loan to, an investment in, or an asset subject to a lease or lease arrangement with, that related party or related trust, as the case requires.

Definition
 (2A) In subsection (2):
agreement includes any arrangement, understanding, promise or undertaking whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings.

Exceptions
 (2B) Subsection (2) does not apply to an investment referred to in paragraph 71(1)(a), (b), (c) or (h).

2 or more persons
 (3) Subsection (2) does not stop the same asset from being treated as if it were a loan to, an investment in, or an asset subject to a lease or lease arrangement with, 2 or more persons.

The Regulator's determination
 (4) If:
 (a) apart from this subsection, an asset of a fund consists of a loan, an investment, or an asset subject to a lease or lease arrangement, other than an in‑house asset; and
 (b) the Regulator, by written notice given to a trustee of the fund, determines that