Document ID: chunk:federal_register_of_legislation:C2011A00024:clause:1_601scd
Version: federal_register_of_legislation:C2011A00024
Segment Type: clause
Provision Reference: sch 1 cl 601SCD
Character Range: 6467–7302

601SCD  Arm's length transactions
 (1) A licensed trustee company that operates a common fund that is not a registered scheme must not give a financial benefit in relation to the common fund to a related party.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).
 (2) Subsection (1) does not apply if the financial benefit is given on terms that:
 (a) would be reasonable in the circumstances if the trustee company and the related party were dealing at arm's length; or
 (b) are less favourable to the related party than the terms referred to in paragraph (a).
 (3) In this section:
financial benefit has a meaning that is affected by section 229.
related party has the meaning given by section 228, as if references in that section to a public company were references to a licensed trustee company.