Document ID: chunk:federal_register_of_legislation:F2023L01163:body:0:p2
Version: federal_register_of_legislation:F2023L01163
Segment Type: other
Provision Reference: 
Character Range: 2784–5525

services (within the meaning of the ASIC Corporations (Wholesale Equity Scheme Trustees) Instrument 2017/849 (ASIC Instrument)); and
(b) contains conditions to the effect of the conditions referred to in subparagraph 6(a)(ii) of the ASIC Instrument;
as if the assets, liabilities, cash inflows and cash outflows of any eligible trustee were included in the assets, liabilities, cash inflows and cash outflows of the manager.
(2B) In subsection (2A), eligible trustee means a person who is both:
(a) an eligible trustee of a wholesale equity scheme (within the meaning of the ASIC Instrument);
(b) a related body corporate of the manager.
Tailored cash needs requirement
(3) The licensee must:
(a) prepare a projection of the licensee's cash flows over at least the next 12 months based on the licensee's reasonable estimate of what is likely to happen over this period; and
(b) have the projection approved in writing at least once a quarter by the following persons as satisfying the requirements of paragraph (a):
(i) if the licensee is a body corporate—the directors of the licensee;
(ii) if the licensee is a partnership or the trustees of a trust—the partners of the licensee or the trustees;
(iii) if the licensee is a natural person—the person; and
(c) document the calculations and assumptions used in preparing the projection and describe in writing why the assumptions are appropriate; and
(d) update the projection of the licensee's cash flows if:
(i) the projection ceases to cover at least the next 12 months; or
(ii) there is reason to suspect that an updated projection would differ materially from the current projection or show that the licensee was not meeting the requirements in subparagraphs (i) and (ii) of paragraph (e); and
(e) document whether, based on the projection of the licensee's cash flows, the licensee:
(i) will have access when needed to enough financial resources to meet its liabilities over the projected term of at least the next 12 months; and
(ii) will comply with paragraph (7)(a) at all times during the projected term.
Net tangible assets
(4) Unless subsection (5) applies, the licensee must hold at all times NTA of:
(a) if the licensee is not an incidental provider—at least the greater of:
(i) $10 million; and
(ii) 10% of average revenue of the licensee; and
(b) if the licensee is an incidental provider—at least the greater of:
(i) $150,000; and
(ii) 10% of average revenue of the licensee.
Note: If subsection (5) applies, there is no NTA requirement.
(5) This subsection applies if the licensee is an incidental provider and all the financial products or beneficial interests in financial products to which the custodial or depository services provided by the licensee relate are held by: