Document ID: chunk:federal_register_of_legislation:F2025L00184:reg:18
Version: federal_register_of_legislation:F2025L00184
Segment Type: reg
Provision Reference: reg 18
Character Range: 24657–26684

18  Investment strategy

 (1) A community charity must prepare and maintain a current investment strategy in accordance with this section.
Penalty: 10 penalty units.

 (2) An investment strategy must set out the investment objectives of the charity and detail the investment methods the charity will adopt to achieve those objectives.

 (3) An investment strategy must also reflect the purposes and circumstances of the charity and have particular regard to:
 (a) the risk involved in making, holding and realising, and the likely return from, the charity's investments, having regard to the charity's objects and its expected cash flow requirements (including distribution requirements); and
 (b) the composition of the charity's investments as a whole, including the extent to which the investments are diverse or expose the charity to risks from inadequate diversification; and
 (c) the liquidity of the charity's investments, having regard to its expected cash flow requirements (including distribution requirements); and
 (d) the ability of the charity to discharge its existing and prospective liabilities; and
 (e) the investment restrictions imposed by *Australian laws; and
 (f) the status of the charity as a *registered charity; and
 (g) material conflicts of interest (whether actual or perceived) in holding particular investments (including conflicts affecting individuals involved in the decision‑making of the charity); and
 (h) the terms and other circumstances relating to any gift to the charity under a will.

 (4) The charity must implement the investment strategy, and must ensure that all investment decisions are made in accordance with it.
Penalty: 15 penalty units.

 (5) The investment strategy (and a record of the associated decision‑making processes) must be available in a written form so that the trustee or corporate director, an auditor, a reviewer or the Commissioner can determine whether the charity has complied with this instrument and other *Australian laws.
Penalty: 10 penalty units.