Document ID: chunk:federal_register_of_legislation:F2022C00868:reg:6
Version: federal_register_of_legislation:F2022C00868
Segment Type: reg
Provision Reference: reg 6
Character Range: 78767–81030

6     deposit                                                                                                                                                      it is with the entity

Note: An asset may relate to more than one entity. It must be counted for the purposes of the application of subsections (1) to (4) to each of those entities.

Meaning of government security
 (9) For this section and section 31, an asset is a government security only if:
 (a) the asset is:
 (i) a transferable security other than an interest in a financial asset regulated CIS; or
 (ii) a money market instrument; and
 (b) the entity to which it relates is:
 (i) the government of an economy; or
 (ii) a central bank; or
 (iii) a supranational organisation.

Meaning of risk‑assessed government security
 (10) For these rules, a government security is a risk‑assessed government security only if the holding is assessed as having an acceptable risk.
 (11) In this section and section 31, in a situation where an entity, other than the responsible holding party or its delegate, holds an asset referred to in paragraph 23(1)(a), 23(1)(b) or 23(1)(c) on behalf of a passport fund:
 (a) if the asset is segregated from the other assets of that entity such that the passport fund will have an enforceable legal claim to that asset that is distinct from and superior to the legal claims of general creditors of the entity holding the asset in the event of insolvency of that entity, then the issuer of a transferable security referred to in paragraph 23(1)(d) is taken to be the issuer of the asset referred to in paragraph 23(1)(a), (b) or (c) to which it relates and not the person holding the asset referred to in paragraph 23(1)(a), (b) or (c); and
 (b) in all other cases, the issuer of a transferable security under paragraph 23(1)(d) is taken to be both the issuer of the asset referred to in paragraph 23(1)(a), (b) or (c) to which it relates and the person holding or taking into custody the asset referred to in paragraph 23(1)(a), (b) or (c).
 (12) In this section and section 31, where a transferable security is an interest in a CIS, the issuer is taken for this section and section 31 to be the CIS, even if the CIS is not a person, and not the operator of the CIS.