Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p13
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 13/148)
Character Range: 360592–363215

of the trust—a copy of the trust's audit report and financial statements for the year.

Division 2.2—Common funds

5D.2.03  Common funds
  This Division is made for section 601SCC of the Act.

5D.2.04  Establishment of common funds
 (1) A licensed trustee company may:
 (a) establish accounts within a common fund; and
 (b) establish a common fund on the basis of units or another suitable basis.
 (2) If the common fund includes money that is not estate money and that is not otherwise held in trust, the licensed trustee company is taken to hold the money in trust for the person on whose behalf the money is invested in the common fund.

5D.2.05  Deciding details about common funds
 (1) A licensed trustee company that is establishing a common fund commits an offence if, at the time of establishing the fund, it does not ensure that its Board makes a decision, in writing, about the following:
 (a) any limitation on the amount of money that will form the common fund;
 (b) the investment strategy for the common fund, including the following:
 (i) the class of investments in which the common fund may be invested;
 (ii) the procedure for valuing the investments;
 (iii) if the trustee company is to seek expert advice about proposed investments—the type of expert advice to be sought;
 (c) the amount of fees that are to be paid by:
 (i) the common fund for the provision of traditional trustee company services; and
 (ii) each account in the common fund;
 (d) the manner in which a withdrawal can be made from the common fund;
 (e) the procedure for auditing the common fund;
 (f) if the common fund is to have a limited life—the duration of the common fund;
 (g) if the common fund is to have a minimum amount that may be invested in the fund on account of each estate—the minimum amount.
Penalty: 500 penalty units.
 (2) The licensed trustee company commits an offence if it does not:
 (a) within 14 days of making the decision:
 (i) send a copy of the decision to ASIC; and
 (ii) publish a copy of the decision on its website; and
 (b) if requested by a person entitled to request an annual information return under subregulation 5D.2.01(3), make a copy of the decision available to the person within 30 days of the request being received.
Penalty: 500 penalty units.
 (3) A person commits an offence if the person is involved in a contravention of subregulation (1) or (2) by a licensed trustee company.
Penalty:
 (a) for an individual—50 penalty units; and
 (b) for a body corporate—500 penalty units.

5D.2.06  Operation of common funds

Compliance with the Act and regulations
 (1) A licensed trustee company