Document ID: chunk:federal_register_of_legislation:F2021C00656:body:0:p4
Version: federal_register_of_legislation:F2021C00656
Segment Type: other
Provision Reference: 
Character Range: 8399–11269

20% of the total investment; and
(b) the amount of each investment in a venture capital fund must be held:
 (i) in escrow in favour of the general partner of the fund; or
 (ii) as security for a guarantee issued by an Australian ADI in favour of the general partner of the fund.
       (3)At the time of decision for the investor's visa, at least 20% of the total investment must be held either.
(a) as mentioned in paragraph (2)(b); or
(b) on deposit in either or both of the following for investment in accordance with this section:
 (i) a cash management trust or trusts (within the meaning of the Income Tax Assessment Act 1997);
 (ii) an Australian ADI.
       Investment requirements while visa is in effect
       (4)A substantial part of the total of amounts held under paragraph (2)(b) for investment by one or more venture capital funds (not including any fees related to the investment) must be invested during the period the visa is in effect.
       Investment realised
       (5)If an investment in a venture capital fund is realised before the visa ceases to have effect, the amount realised from the investment must be reinvested in one or more of the following:
(a) one or more venture capital funds (which may include the same fund);
(b) emerging companies investments (see section 9);
(c) balancing investments (see section 10);
       Investment reimbursed following lapse of conditional registration
       (6) If an investment in a venture capital fund (the original venture capital fund) is reimbursed (in whole or in part) in the circumstances covered by subsection (7) before the visa ceases to have effect, the amount reimbursed must be reinvested in another venture capital fund or funds.
       (7) The circumstances covered by this subsection are as follows.
(a) the original venture capital fund was conditionally registered under section 13-5 of the Venture Capital Act 2002;
(b) the fund's conditional registration has lapsed under subsection 13‑10(3) of that Act; or
(c) the investor's investment in the original venture capital fund is reimbursed (in whole or in part) because of that lapse.
Note See subregulations 5.19C(7) and (8) of the Regulations for the allowable period during which funds may be transferred from one investment to another.

9 Emerging companies investments
       General
       (1)An emerging companies investment is an investment in accordance with this section.
       (2)The investment must:
(a) be invested through one or more managed investment funds; and
(b) comply with the requirements of this section at any time.
       Permitted investments
       (3)The investment may be made only in one or more of the following:
(a) securities quoted on ASX Limited;
(b) securities (Australian non‑ASX quoted securities) quoted on an Australian securities exchange other than ASX Limited.
(c) securities (unquoted