Document ID: chunk:federal_register_of_legislation:F2017L00436:body:0:p2
Version: federal_register_of_legislation:F2017L00436
Segment Type: other
Provision Reference: 
Character Range: 2841–5836

7.             A trustee must hold the assets of the designated security trust fund of which they are the trustee and apply them in accordance with paragraphs 8 to 11.

8.             An asset of a designated security trust fund must be an asset in Australia unless it is transferred outside Australia under the terms of the trust deed.

9.             A trustee must not hold an excluded asset.

10.         For paragraph 9, an asset is excluded if:

       (a)          it is an asset that would not be included as an asset for Part III of the Act if:

           (i)            it were an asset of Lloyd's underwriters, Equitas Limited or Equitas Reinsurance Limited; and

           (ii)         the holder of the asset were taken to be a body corporate authorised to carry on insurance business;

       (b)          the asset is re-invested through an interposed body corporate, trust or partnership with Lloyd's, Equitas Limited or Equitas Reinsurance Limited; or

       (c)          the asset is not acquired or maintained at arm's length from the other party to the relevant transaction.

11.         A letter of credit is an asset only if:

       (a)          it is given by a bank;

       (b)          it is irrevocable; and

       (c)          it provides for immediate payment at the written direction of the trustee.

Valuation of assets
12.         For these rules, the value of an asset of a designated security trust fund is:

       (a)           the market value of the asset; or

       (b)          in the case of a letter of credit, its face value.

Liabilities
13.         A trustee must not:

       (a)          borrow for the purposes of the trust;

       (b)          charge the assets of the trust; or

       (c)          incur, or allow to be incurred, a liability that is not for the purposes of the trust.

Suspense account
14.         A trustee must hold in a suspense account assets:

       (a)          transferred to it for the purposes of a designated security trust fund; but

       (b)          for which the trustee is not given sufficient information to complete its records.

15.         A trustee must not apply funds from a suspense account unless:

       (a)          APRA has given written approval; or

       (b)          the trustee has obtained the information mentioned in subparagraph 14(b) and transfers the funds to the relevant designated security trust fund.

Records
   16.        A trustee must keep or cause to be kept, for 7 years after the completion of the transactions to which they relate, records that allow:

       (a)          the accounts and statements mentioned in Attachments A and B to be prepared and audited properly and conveniently; and

       (b)          the trust to be performed, including under judicial trusteeship and winding up under the Act.

   17.        A trustee must give to APRA the accounts and statements mentioned in Attachment A in the form, for the periods and