Document ID: chunk:federal_register_of_legislation:F2009B00251:body:0:p14
Version: federal_register_of_legislation:F2009B00251
Segment Type: other
Provision Reference: 
Character Range: 38121–41204

the fund manager or place such additional conditions on the fund manager and in respect of the fund as the Board thinks fit.

         The Board may prescribe other circumstances in which the fund manager may be removed or additional conditions imposed.

    43 The additional conditions referred to in clause 42 may include:

             (a)                divestment of specified investments;

             (b)               limitations on investments, short term debt raising or other financing instruments;

             (c)                reimbursement of costs associated with correcting the circumstance; or

             (d)               recruitment by the fund manager of additional staff with appropriate expertise, experience and abilities.

Conditions to apply to investors

         44 The Board must in the PSF guidelines, the licence agreement or other documents relating to a licensed fund, provide for the consequences of a person who has invested in or provided amounts to the fund breaching, or causing the fund manager to breach, the PSF guidelines, licence agreement or other documents relating to the licensed fund.

Valuation

         45 The Board must make provision in the PSF guidelines, licence agreement and other documents relating to a licensed fund  for policies and methodologies to ensure a consistent, transparent and realistic valuation of licensed fund assets.  Where practicable these methodologies and policies are to reflect what is, in the opinion of the Board, generally accepted practice in Australia, unless the Board otherwise determines.

    Other Requirements

    46 Nothing in this part 8 limits the requirements that may be imposed under clause 22.

PART 9—INCOME DISTRIBUTION AND TERM

Distribution

         47 In determining the terms on which Commonwealth program capital is invested in a licensed fund, the Board must require the fund to distribute proceeds from the receipt of earnings or the realisation of investments or other financings in the following manner:

             (a)                first, an amount equal to the licensed fund's total committed capital is to be divided amongst the Commonwealth, (or its nominee) and private investors pro rata according to the amount subscribed by them, whether or not drawn down;

             (b)               second, the balance of the proceeds is (subject to clause 19) to be divided in a predetermined manner by the private investors and the fund manager.

Ten Year Term

         48 A licensed fund must be wound up no later than 10 years after the date Commonwealth program capital is first invested in it, with all monies distributed  according to clause 47, subject to an extension of that period to allow for the orderly and prudent disposal of the fund assets or for other reasons as the Board thinks fit.

PART 10—FEES

Fund management fees

         49 The Board must make provision in the PSF guidelines, licence agreement or other documents  relating to a licensed fund for the setting of appropriate management fees.  In approving these