Document ID: chunk:federal_register_of_legislation:C2004A02860:body:0:p3
Version: federal_register_of_legislation:C2004A02860
Segment Type: other
Provision Reference: 
Character Range: 4865–7422

invested) in such manner as the company thinks fit.
"(2) Subject to sub-sections (3) and (4), a company shall not, except with the approval of the Commissioner, invest any assets of a fund of the company—
    (a) in a related company (other than a subsidiary); or
    (b) under a trust scheme.
"(3) Sub-section (2) does not prevent a company from investing, without obtaining the approval of the Commissioner, any assets of a fund of the company—
    (a) by way of a loan to (including deposit with) or any shares in or debentures of, a bank as defined by sub-section 5 (1) of the Banking Act 1959 or a bank constituted by a law of a State; or
    (b) by way of a loan to (including deposit with) a prescribed dealer in the short-term money market.
"(4) Sub-section (2) does not prevent a company from investing, without obtaining the approval of the Commissioner, any moneys of a fund of the company under trust schemes if the sum of those moneys and the value of the assets of the fund consisting of investments under trust schemes does not exceed 5% of the value of the assets of the fund.
"(5) In determining whether to grant or refuse approval under sub-section (2) to a proposed investment of assets of a fund of a company (in this sub-section referred to as the 'investing company') in a related company or under a trust scheme, the Commissioner shall have regard to all matters that he considers relevant and, in particular, to the following matters:
    (a) the proportion that the value of the assets of the fund consisting of investments in related companies or under trust schemes, as the case may be, bears, respectively, to the total value of the assets of that fund and to the total value of the assets of all funds of the investing company;
    (b) the proportion that the value of assets of the fund invested in the related company or under the scheme, as the case may be, bears to the total value of the assets of the investing company;
    (c) the overall financial strength of the investing company, including, in particular, the nature and the degree of diversity of the assets of the company;
    (d) the viability of the related company or the scheme, as the case may be, including its past profitability and its likely future profitability;
    (e) in the case of a proposed investment in a related company—the nature of the business carried on by the company;
    (f) in the case of a proposed investment under a trust scheme—the nature of the assets of the scheme; and
    (g) whether or not the proposed investment is likely to be