Document ID: chunk:federal_register_of_legislation:F2022C00868:reg:36
Version: federal_register_of_legislation:F2022C00868
Segment Type: reg
Provision Reference: reg 36
Character Range: 90207–91368

36  Restrictions on portfolio allocation—limit on investments conferring significant management influence
 (1) A passport fund that is not an index fund or a benchmark fund must not hold a legal or equitable interest in votable transferable securities of an entity accounting for more than 20% of the voting rights in that entity when added to any voting rights held by any of the passport fund's related parties of which it is aware or has reason to believe are held.
 (2) A passport fund that is an index fund or a benchmark fund must not hold a legal or equitable interest in votable transferable securities such that the passport fund or its operator, together with its related parties, exert significant influence on the management of the business of the entity in which the votable transferable securities are held.
 (3) For this section, votable transferable securities of an entity means transferable securities that:
 (a) relate to the entity; and
 (b) carry voting rights in the entity that may be cast on a resolution at a meeting of members of the entity generally or that are otherwise able to be voted in determining the directors of the entity.