Document ID: chunk:federal_register_of_legislation:F2022C00868:reg:31
Version: federal_register_of_legislation:F2022C00868
Segment Type: reg
Provision Reference: reg 31
Character Range: 81030–82788

31  Group limit
 (1) Subject to subsection 30(6) and section 33, no more than 20% of the value of the assets of a passport fund may be held in assets that:
 (a) relate to the same group of entities; and
 (b) are of any one or more the following types:
 (i) the types mentioned in paragraph 30(2)(b);
 (ii) deposits.
 (2) The limits under subsection (1) do not apply to deposits funded from:
 (a) money received from the issue or sale of interests in the passport fund before the commencement of investment by the passport fund; or
 (b) liquidation of investments in the process of winding up a passport fund, where the operator reasonably believes that complying with that subsection would not be in the interests of the members of the passport fund; or
 (c) money received from sales of assets of a passport fund to meet the redemption requests, where the operator reasonably believes that complying with that subsection would not be in the interests of the members of the passport fund.

Meaning of group of entities and relates to a group of entities
 (3) For this section:
 (a) 2 entities are linked if one entity is the controller of the other; and
 (b) 2 entities are also linked if both entities are linked to a third entity; and
 (c) a set of entities forms a group of entities if each entity in the set is linked to each other entity.
 (4) For this section, an asset relates to a group of entities if:
 (a) the asset is not a government security; and
 (b) the asset is of a type listed in the following table and has the connection with a group of entities shown:

Item  This type of asset…                                                                                                                           …relates to a group of entities if: