Document ID: chunk:federal_register_of_legislation:F2024C00969:reg:20:p1
Version: federal_register_of_legislation:F2024C00969
Segment Type: reg
Provision Reference: reg 20 (pt 1/2)
Character Range: 23729–26430

20  Investment fund whose trustee or manager is an associate of an airline

Prescribed interest
 (1) An interest in a share is an interest of a prescribed kind if:
 (a) the interest is an interest in a share in an airline; and
 (b) the interest‑holder, in the interest‑holder's capacity as the trustee or manager of an investment fund, is an associate of the airline; and
 (c) the interest exists solely as a result of an action by the interest‑holder in the interest‑holder's capacity as trustee or manager of an investment fund.

Prescribed person
 (2) The interest‑holder mentioned in subsection (1) is a prescribed person if:
 (a) the Minister declares the investment fund, of which the interest‑holder is trustee or manager, to be a distanced investment fund; and
 (b) the declaration is in force.

Application for investment fund to be declared a distanced investment fund
 (3) The interest‑holder may, in writing, apply to the Minister for a declaration that an investment fund is a distanced investment fund.

Eligibility for investment fund to be declared
 (4) An investment fund is eligible to be declared a distanced investment fund if:
 (a) neither the trustee nor the manager of the investment fund is an associate (within the meaning of paragraph 5(1)(j) of the Schedule to the Act) of the airline; and
 (b) the investment fund is a fund in which a beneficial interest in less than 40% of the capital, and 40% of the income, is held by persons who are foreign persons.

Minister to decide if investment fund to be declared a distanced investment fund
 (5) The Minister must:
 (a) if reasonably satisfied that the investment fund is eligible to be declared a distanced investment fund:
 (i) make the declaration; and
 (ii) within 7 days of making the declaration, give a copy of the declaration to the interest‑holder and publish a notice of the declaration on the Department's website; or
 (b) if not so satisfied—refuse to make the declaration.

Reasons for refusal decision to be given
 (6) The Minister must, within 7 days of deciding to refuse to make a declaration, give the interest‑holder written notice stating:
 (a) the reasons for the decision; and
 (b) the interest‑holder's right to have the decision reviewed by the Administrative Review Tribunal.
Note: See section 28 for review of decisions.

Minister to be advised of adverse facts or circumstances
 (7) If:
 (a) a declaration by the Minister that an investment fund is a distanced investment fund is in force; and
 (b) the interest‑holder is, or becomes, aware of the existence of a fact or circumstance that, had it existed and been known to the Minister at the time the declaration was made, is likely to have resulted