Document ID: chunk:federal_register_of_legislation:C2025C00185:section:601scd
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 601SCD
Character Range: 2361704–2362573

601SCD  Arm's length transactions
 (1) A licensed trustee company that operates a common fund that is not a registered scheme must not give a financial benefit in relation to the common fund to a related party.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).
 (2) Subsection (1) does not apply if the financial benefit is given on terms that:
 (a) would be reasonable in the circumstances if the trustee company and the related party were dealing at arm's length; or
 (b) are less favourable to the related party than the terms referred to in paragraph (a).
 (3) In this section:
related party has the meaning given by section 228, as if references in that section to a public company were references to a licensed trustee company.

Part 5D.3—Regulation of fees charged by licensed trustee companies

Division 1—Disclosure of fees