Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:3:p2
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 3 (pt 2/66)
Character Range: 228272–230996

Note: Subsection 18(7) of the Act allows for funds to be declared not to be public offer funds.
 (3) An approval for paragraph (2)(e):
 (a) is subject to any conditions specified in the instrument of approval; and
 (b) may be revoked by APRA by written notice given to the holder of the approval.
 (4) APRA may vary the conditions of an approval for paragraph (2)(e) by written notice given to the holder of the approval.
 (5) An approval that:
 (a) was granted by the Commissioner or APRA under the regulation 4.08A that, under section 2 of Modification Declaration 10, had effect as if it had been inserted into these regulations; and
 (b) was in force immediately before 1 March 2001;
continues in force as if granted by APRA for this regulation after that commencement.
Note: Modification Declaration 10 was gazetted on 19 July 1995 under section 332 of the Act.
 (6) When deciding whether or not to approve an arrangement for paragraph (2)(e), APRA must have regard to any written guidelines determined by APRA under this subregulation.
 (7) This regulation does not apply to a fund if the fund has an acting trustee appointed under Part 17 of the Act.

4.09  Operating standard—investment strategy
 (1) This regulation:
 (a) is made for subsection 31(1) of the Act; and
 (b) applies to a superannuation entity that is a self managed superannuation fund.
 (2) The trustee of the entity must formulate, review regularly and give effect to an investment strategy that has regard to the whole of the circumstances of the entity including, but not limited to, the following:
 (a) the risk involved in making, holding and realising, and the likely return from, the entity's investments, having regard to its objectives and expected cash flow requirements;
 (b) the composition of the entity's investments as a whole, including the extent to which they are diverse or involve exposure of the entity to risks from inadequate diversification;
 (c) the liquidity of the entity's investments, having regard to its expected cash flow requirements;
 (d) the ability of the entity to discharge its existing and prospective liabilities;
 (e) whether the trustees of the fund should hold a contract of insurance that provides insurance cover for one or more members of the fund.
 (3) An investment strategy is taken to be in accordance with subregulation (2) even if it provides for a specified beneficiary or class of beneficiaries to give directions to the trustee where the directions:
 (a) relate to the strategy to be followed by the trustee in relation to the investment of a particular asset or assets of the entity; and
 (b) are given in the circumstances covered by regulation 4.02.

4.09A  Operating standard—money and other