Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:2:p7
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 2 (pt 7/26)
Character Range: 1550702–1553465

of sub‑fund C include shares referable to sub‑fund D of the CCIV; and
(c) the assets of sub‑fund D include shares referable to the acquiring sub‑fund.
In this example, sub‑funds C and D are each interposed sub‑funds.

8B.4.15  Cross investment between sub‑funds of a CCIV—requirements and restrictions on membership rights
 (1) For the purposes of paragraph 1230T(3)(b) of the Act, a CCIV's entitlement, as described in subsection 1230T(2) of the Act, to vote:
 (a) in respect of each share that the CCIV has acquired in respect of a sub‑fund of the CCIV (the first sub‑fund) and that is referable to another sub‑fund of the CCIV (the second sub‑fund); and
 (b) as a member of the second sub‑fund on a resolution (the relevant resolution) at a meeting of the members of the second sub‑fund;
is subject to the requirement and restriction mentioned in subregulation (2).
 (2) For the purposes of subregulation (1), there is:
 (a) a requirement that the CCIV must vote, in respect of each such share, on the relevant resolution in the way determined by resolution of the members of the first sub‑fund; and
 (b) a restriction that the CCIV must not vote, in respect of each such share, on the relevant resolution if a resolution that determines the way the CCIV must vote on the relevant resolution is not made by the members of the first sub‑fund.

Division 4—Financial reports and audit of CCIVs

8B.4.40  Keeping financial records for sub‑funds—further requirement for cross‑investment
 (1) For the purposes of paragraph 1232A(1)(c) of the Act, the written financial records that a CCIV must keep, for each sub‑fund of the CCIV, must comply with the further requirement set out in subregulation (2).
 (2) Those records must correctly and clearly identify and explain all cross‑investment between the sub‑fund and any other sub‑fund of the CCIV.

8B.4.45  Annual financial reports for sub‑funds—further requirement for cross‑investment
 (1) For the purposes of subsection 1232D(3) of the Act, a retail CCIV's financial report for a sub‑fund (the reporting sub‑fund) for a financial year must comply with:
 (a) the further requirements set out in subregulation (2) to the extent that the assets of the reporting sub‑fund include shares in the CCIV referable to another sub‑fund of the CCIV; and
 (b) the further requirements set out in subregulation (3) to the extent that the assets of another sub‑fund of the CCIV include shares in the CCIV referable to the reporting sub‑fund.

Requirements for the reporting sub‑fund as an investor sub‑fund
 (2) The report must ensure that disclosures of the following are included in the notes to the financial statements of the reporting sub‑fund for the financial year:
 (a) the total number of shares in the CCIV that:
 (i)