Document ID: chunk:federal_register_of_legislation:F2022C00868:reg:52
Version: federal_register_of_legislation:F2022C00868
Segment Type: reg
Provision Reference: reg 52
Character Range: 108227–109890

52  Deferral of redemptions
 (1) This section applies in relation to a passport fund if, on a dealing day:
 (a) the redemption request is due for redemption; and
 (b) any deferred redemption requests under subsections (5) and (6);
together, amount to more than 10% by value of the interests in the passport fund.
 (2) The operator does not contravene this Part if it limits the interests that will be redeemed on the day to a proportion of the interests in the passport fund (the daily limit) that is at least 10% by value of the interests in accordance with this section.
 (3) The operator must divide the requests into priority groups based on the days on which they were received, giving higher priority to requests received on earlier days.
 (4) The operator must process the requests by priority group.
 (5) If redeeming all the requests in a priority group would take the interests redeemed on that day beyond the daily limit, the operator must:
 (a) redeem the same proportion of each request in the priority group; and
 (b) treat each request in the priority group as a deferred redemption request for the remainder of the interests requested, to be dealt with on the next dealing day.
 (6) If the daily limit is filled before a priority group is reached, the operator must treat the whole of each request in that priority group as a deferred redemption request, to be dealt with on the next dealing day.
 (7) For this section:
dealing day, in relation to a passport fund, means a day on which the members of the fund have a right to redeem their interests in the fund including following a deferral under this section.

Division 7.2—Valuation of assets