Document ID: chunk:federal_register_of_legislation:F2013C00808:body:0:p9
Version: federal_register_of_legislation:F2013C00808
Segment Type: other
Provision Reference: 
Character Range: 21707–24488

not exceed 2:1;

         (b) an IIF licensed fund may be a unit trust, company or other structure approved by the Board.  A Pooled Development Fund cannot invest in or provide money to an IIF licensed fund;

         (c) an IIF licensed fund must not raise monies in the form of debt, or equity with features materially consistent with debt, with the exception of leasing equipment or short term debt for the purpose of maintaining the short term liquidity of the IIF licensed fund, without the consent of the Board;

         (d) an IIF licensed fund must source at least 30% of the private capital from entities not associated with the fund manager.  The Board may place additional requirements in    the IIF guidelines which require an IIF licensed fund to have a diversity of entities providing the private capital;

         (e) an IIF licensed fund must provide funding to eligible investee companies only by   means of equity purchase, with the exception of short term loans provided for  temporary measures to an eligible investee company in which the fund has previously invested or to which it has previously provided finance to.  Unless otherwise approved by the Board, the equity purchased must be a new issue;

         (f) at least 60% of an IIF licensed fund committed capital must be invested within 5 years of the granting of the licence, unless otherwise approved by the Board;

         (g) an IIF licensed fund must not invest in or provide to an eligible investee company more than $4,000,000 or 10% of the fund's committed capital, whichever is the lesser,    unless the Board agrees otherwise;

         (h) transactions carried out by an IIF licensed fund in relation to eligible investee companies must be carried out at arm's length;

         (i) an IIF licensed fund and investee company, investor, trustee, director or manager of such a fund must avoid transactions where a conflict of interest exists.  Where such transactions are unavoidable, the parties to the transaction must be able to demonstrate that the transaction was carried out on an arm's length basis  in a manner consistent  with Part 3.2 of the Corporations Law.  The fund or the investor must notify the Board of any such conflict of interest, the nature of the conflict, the nature of the transaction and the terms and conditions of the transaction within thirty days of entering into such   a transaction;

         (j) a person who has invested in or provided amounts to an IIF licensed fund must not influence or attempt to influence, the individual investment or financing decisions of   the fund manager;

         (k) an IIF licensed fund must have an appropriate number of suitably qualified and experienced investment managers having regard to the size and type of the fund;