Corporations Regulations 2001

A licensed trustee company that is establishing a common fund commits an offence if, at the time of establishing the fund, it does not ensure that its Board makes a decision, in writing, about the following:

any limitation on the amount of money that will form the common fund;

the investment strategy for the common fund, including the following:

the class of investments in which the common fund may be invested;

the procedure for valuing the investments;

if the trustee company is to seek expert advice about proposed investments—the type of expert advice to be sought;

the amount of fees that are to be paid by:

the common fund for the provision of traditional trustee company services; and

each account in the common fund;

the manner in which a withdrawal can be made from the common fund;

the procedure for auditing the common fund;

if the common fund is to have a limited life—the duration of the common fund;

if the common fund is to have a minimum amount that may be invested in the fund on account of each estate—the minimum amount.

The licensed trustee company commits an offence if it does not:

within 14 days of making the decision:

send a copy of the decision to ASIC; and

publish a copy of the decision on its website; and

if requested by a person entitled to request an annual information return under subregulation 5D.2.01(3), make a copy of the decision available to the person within 30 days of the request being received.

A person commits an offence if the person is involved in a contravention of subregulation (1) or (2) by a licensed trustee company.

for an individual—50 penalty units; and

for a body corporate—500 penalty units.