Document ID: chunk:federal_register_of_legislation:F2018L00736:reg:6
Version: federal_register_of_legislation:F2018L00736
Segment Type: reg
Provision Reference: reg 6
Character Range: 1998–3125

6  Discretionary mutual funds
 (1) For the purposes of paragraph 5(5)(b) of the Act, a fund meeting the following criteria is declared to be a discretionary mutual fund:
 (a) 2 or more persons have contributed to the fund;
 (b) payments have been or may be made out of the fund in respect of liabilities, losses, damages or expenses of the contributors;
 (c) the fund is governed by rules under which any such payments for the benefit of the contributors are subject to a discretion of a person or body other than the contributors.
 (2) For the purposes of paragraph 5(5)(b) of the Act, a fund meeting the following criteria is declared to be a discretionary mutual fund:
 (a) only one person contributes or has contributed to the fund;
 (b) payments have been or may be made out of the fund in respect of liabilities, losses, damages or expenses of the contributor or another person (the covered person);
 (c) the fund is governed by rules under which any such payments for the benefit of the contributor or the covered person are subject to a discretion of a person or body other than the contributor or the covered person.