Document ID: chunk:federal_register_of_legislation:F2013C00808:body:0:p12
Version: federal_register_of_legislation:F2013C00808
Segment Type: other
Provision Reference: 
Character Range: 29728–32495

to, the fund is returned in the proportions invested or provided; and

         (c) the balance, if any, remaining is applied as follows:

             (i) there is paid to each investor including the Commonwealth an amount equal    to the interest on the amount from time to time invested in or provided to the fund by that investor calculated at a rate equal to the ten year bond rate prevailing on the date the offer of a licence is made by the Board and  stipulated in the offer document; and

             (ii) any surplus is to be divided between the Commonwealth (as to 10%) and the other investors and the fund manager (as to 90%).

         47. The Board must make provision in the IIF guidelines, licensing agreement or other contractual document relating to the operation of an IIF licensed fund to allow the  Board to determine the distribution of fund monies as between the other investors and the fund manager as contemplated by clause 46(c)(ii).  In making such a    determination, the Board will take into consideration any distribution mechanism  agreed between the fund manager and the other investors.

Ten Year Term

         48. The Board must make provision for an IIF licensed fund to be wound up after ten years from the date Commonwealth program capital is first contributed, with all monies distributed in accordance with clauses 46 and 47, subject to an extended period to   allow for the orderly and prudent disposal of the fund assets or for other reasons the Board thinks fit.

PART 9—FEES

Fund management fees

         49. The Board must determine and make provision in the IIF guidelines, licensing agreement or other contractual documents in relation to an IIF licensed fund for an appropriate maximum level of fund management fees based on the amount of the   fund's committed capital.  In determining this and any other fees, the Board must have regard to:

         (a) the level of resources for fund managers that the Board considers appropriate;

         (b) the scope of the management services to be provided by the fund manager to the fund and included in the fund management fee;

         (c) the interests of the investors to the fund, including the Commonwealth;

         (d) the objectives of the IIF program; and

         (e) any other matters the Board thinks fit.

Management Services

         50. The Board must include in the IIF guidelines, licensing agreement or other contractual documents in relation to an IIF licensed fund a requirement that any management services provided to an investee company by the fund manager or an associate of the fund manager which are paid for by the investee company are charged at no more than market rates, are optional, and are open to provision by a third party.

PART