Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p20
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 20/58)
Character Range: 2348896–2351520

unit trust; and
 (ii) each of its controlled entities;
  must come from activities that are not ineligible activities mentioned in subsection (14) of this section.
Note 1: This requirement is ongoing. It is not limited to the circumstances at the time the investment was made.
Note 2: See subsection (11) for the value of assets.
Note 3: A unit trust that fails to meet at least 2 of the requirements can still be eligible if Industry Innovation and Science Australia determines that the unit trust's primary activity is not ineligible and the failure is temporary: see subsection (15).
Note 4: Industry Innovation and Science Australia may also determine that the activities of a controlled entity of the unit trust are to be disregarded in applying this section to the unit trust: see subsection (15A).

Investment in other entities
 (5) The unit trust must not invest, in another entity, any part of the amount invested, unless:
 (a) the other entity:
 (i) is *connected with the unit trust (but not because the other entity is an *associate of the unit trust as a result of an investment made in the other entity by the partnership); and
 (ii) meets the requirements of subsections (4) to (8); or
 (b) the other entity:
 (i) is, after the investment is made, controlled by the unit trust in a way described in section 328‑125; and
 (ii) meets the requirements of subsections (3) to (8) of this section (other than subsection (4)).
However, this subsection does not prevent the unit trust from depositing money with an *ADI, or with a body authorised by or under a law of a foreign country to carry on banking business in that country.
Note 1: This requirement is ongoing. It is not limited to the circumstances at the time the investment was made.
Note 2: The other entity can be taken to meet the requirements of subsection (3) if Industry Innovation and Science Australia determines that its activities are complementary to activities of the unit trust or other controlled entities and that the unit trust meets those requirements at the time of the investment: see subsection (15B).

Investment in the capacity of a trustee
 (5A) The unit trust must not, in the capacity of a trustee, use any part of the amount invested.
Note: This requirement is ongoing. It is not limited to the circumstances at the time the investment was made.

Registered auditor
 (6) The unit trust must have as its auditor a *registered auditor at all times (if any) referred to in subsection (6A) during which the unit trust:
 (a) if it were a company:
 (i) would not be a proprietary company within the meaning of the Corporations Act 2001;