Document ID: chunk:federal_register_of_legislation:F2023C00841:body:0:p8
Version: federal_register_of_legislation:F2023C00841
Segment Type: other
Provision Reference: 
Character Range: 17819–20847

Statements which:
                  (i) cover a financial product which relates to another sub-fund of the same CCIV or a sub-fund of another CCIV, but not another financial product; and
                  (ii) is prepared or purports to be prepared in accordance with Part 7.9 of the Act as it applies but for this Subdivision.
           (6) This Subdivision does not apply to a simple sub-fund that is a hedge fund or fund of hedge funds.
           (7) In this regulation:
           derivative has the same meaning as in regulation 7.9.11S of the Regulations.
               Note: Regulation 7.9.11.S is modified by ASIC Corporations (Shorter PDS and Delivery of Accessible Financial Products Disclosure by Platform Operators and Superannuation Trustees) Instrument 2022/497.
               fund of hedge funds means a sub-fund of a retail CCIV:
              (a) that is promoted by the retail CCIV using the expression and as being a "fund of hedge funds"; or
              (b)  in relation to which at least 35% of the assets of the sub-fund are invested in a way that gives rise to economic interests in one or more of the following:
                  (i) a hedge fund; or
                  (ii) a managed investment scheme or body, whether operating or carrying on business in or outside this jurisdiction, that would be a hedge fund if the scheme or body were a registered scheme; or
                  (iii) a sub-fund of another CCIV; or
              (c) that is promoted by the retail CCIV on the basis that assets of the sub-fund will be invested in a way so that paragraph (b) will apply to it.
              hedge fund means a sub-fund of a retail CCIV:
              (a) that is promoted by the retail CCIV using the expression and as being a "hedge fund"; or
              (b) where the retail CCIV (in respect of the sub-fund) is covered by two or more of the following:
                  (i) the retail CCIV (in respect of the sub-fund):
                     (A) deals in financial products in accordance with investment strategies intended to produce a return with low correlation (including no correlation) to each of the prescribed published indexes or any combination of them; or
                     (B) acquires an economic interest in financial products through:
                         (I) three or more interposed entities; or
                         (II) two or more interposed entities if at least one of the entities is an entity that is formed or incorporated outside this jurisdiction or under laws other than Australian laws;
                     where the retail CCIV (in respect of the sub-fund), or an associate of the retail CCIV, has the capacity to control:

                         (III)  the disposal of the products; or

                         (IV) two or more of the interposed entities;

                  (For the purposes of sub-subparagraph (B), the calculation of the number of interposed entities through which a retail CCIV (in respect of a sub-fund) acquires an economic