Document ID: chunk:federal_register_of_legislation:F2023L01162:body:0:p2
Version: federal_register_of_legislation:F2023L01162
Segment Type: other
Provision Reference: 
Character Range: 2711–5485

relation to having available adequate financial resources for the purposes of paragraph 912A(1)(d).
(2A) This section applies to a financial services licensee (manager) that is covered by subsection (1) and holds an Australian financial services licence that:
(a) authorises the manager to provide wholesale equity financial 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 at least once a quarter by the licensee's directors as satisfying the requirements of paragraph (a); 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 hold at all times during the period to which the projection relates in cash or cash equivalents, an amount equal to or greater than the current amount the licensee is required to hold in cash or cash equivalents under subsection (8).
Net tangible assets
(4) The licensee must hold at all times NTA of:
(a) if subsection (5) applies or the licensee does not operate any registered schemes, IDPSs or retail CCIVs—at least the greatest of the following:
(i) $150,000;
(ii) an amount of up to $5 million, being 0.5% of the average value of fund assets of the registered schemes, IDPSs and retail CCIVs operated by the licensee;
(iii) 10% of average revenue of the licensee; and
(b) otherwise—at least