Document ID: chunk:federal_register_of_legislation:F2021C01043:body:0:p9
Version: federal_register_of_legislation:F2021C01043
Segment Type: other
Provision Reference: 
Character Range: 21354–24354

an additional investment from the holder of a debenture or an interest in a managed investment scheme that was offered or issued in reliance on an exemption in section 5 or corresponding relief;

       contain a prominent statement that the charitable investment fundraiser is required by law to notify investors that:
           (c) the investment is only intended to attract investors whose primary purpose for making their investment is to support the relevant charitable purpose; and
           (d) investors may be unable to get some or all of their money back when the investor expects or at all; and
           (e) the investment is not comparable to investments with banks, finance companies or fund managers.
    Duties to ensure investor understanding
(13) The charitable investment fundraiser must not:
           (a) issue a debenture or interest in a managed investment scheme in reliance on an exemption in section 5 to a person as a retail, non-associated client; or
           (b) accept an additional investment from a person as a retail, non-associated client from the holder of a debenture or an interest in a managed investment scheme that was offered or issued in reliance on an exemption in section 5 or corresponding relief;

       unless the person has signed and provided a statement (separate to any other statement provided, or agreement entered into, by the person) to the charitable investment fundraiser stating that the person understands the disclosures required by subsections (11) and (12).
(14) For the purposes of subsection (13), a person is taken to sign a statement if the person would be taken to sign the statement under section 10 of the Electronic Transactions Act 1999 if it applied to that subsection.
Requirement to prepare financial statements and obtain an auditor's report
(15) The charitable investment fundraiser must, within 6 months after the end of the financial year for:
           (a) if it has issued debentures in reliance on an exemption in section 5—the charitable investment fundraiser (relevant entity); and
           (b) if it has issued interests in a managed investment scheme in reliance on an exemption in section 5—the managed investment scheme (relevant entity);
       prepare financial statements for the financial year.
       (16) The charitable investment fundraiser must ensure that:

           (a) if the relevant entity is a reporting entity, the financial statements comply with the accounting standards; and

           (b) if the relevant entity is not a reporting entity, the financial statements comply with all the recognition requirements and measurement requirements that apply to reporting entities and all other requirements of the accounting standards that apply to non-reporting entities.
(17) The charitable investment fundraiser must, within 6 months after the end of the financial year:
           (a) have a registered company auditor audit the financial statements and provide an auditor's report; and