Document ID: chunk:federal_register_of_legislation:F2024C00838:reg:50
Version: federal_register_of_legislation:F2024C00838
Segment Type: reg
Provision Reference: reg 50
Character Range: 76238–78325

50  Requirement for investment management strategy
 (1) This section applies to an approved provider that invests a refundable deposit or an accommodation bond in:
 (a) a financial product covered by any of paragraphs 52N‑1(3)(b) to (e) of the Act;
 (b) a fund, but not a controlling entity of a fund, listed in item 2 of the first Schedule to Banking exemption No. 1 of 2013 made under the Banking Act 1959.
Note: Financial products for paragraph 52N‑1(3)(e) of the Act are specified in section 64 of these principles.
 (2) The approved provider must implement and maintain a written investment management strategy that sets out the following:
 (a) the approved provider's investment objectives;
 (b) the approved provider's assessment of the level of risk to the provider's ability to refund refundable deposit balances or accommodation bond balances in accordance with the Act;
 (c) a strategy for achieving the investment objectives while ensuring that the approved provider is able to refund refundable deposit balances and accommodation bond balances in accordance with the Act;
 (d) the asset classes the approved provider may invest in;
 (e) investment limits for each asset class that are consistent with the investment objectives;
 (f) key personnel with appropriate skills and experience who are responsible for implementing the investment management strategy.
 (3) The investment management strategy must be approved by the key personnel who are responsible for the executive decisions of the approved provider.
 (4) The approved provider must:
 (a) ensure that any investment of refundable deposits or accommodation bonds is in accordance with the provider's investment management strategy; and
 (b) ensure that the provider's investment management strategy is kept up‑to‑date and complies with the requirements set out in subsection (2); and
 (c) modify, or replace, its investment management strategy if the provider becomes aware that the investment management strategy no longer complies with the requirements set out in subsection (2).

Division 5—Disclosure Standard