6Beneficial interest in the capital or income of investment fund

6 Beneficial interest in the capital or income of investment fund

(1) A reference in this instrument to a person who holds a beneficial interest in the capital, or income, of an investment fund includes a reference to a person who holds: (a) an interest of that kind jointly with another person; and (b) an interest of that kind that is prospective because the person: (i) has entered into a contract to purchase a beneficial interest; or (ii) has a right, otherwise than by reason of holding an interest in the fund, to have a beneficial interest in the fund transferred to the person or to the person’s order (whether exercisable presently or in the future, and whether or not subject to a condition); or (iii) has a right to acquire a beneficial interest under an option (whether exercisable presently or in the future, and whether or not subject to a condition). (2) Subsection (1) applies regardless of: (a) the remoteness of the interest; or (b) the way in which the interest arose; or (c) the fact that the exercise of a right conferred by the interest is, or is capable of being made, subject to a restraint or restriction. (3) For the purposes of subsection (1), an interest is not a beneficial interest if: (a) the interest is held solely as security under a moneylending agreement that has not ceased to have effect; and (b) the ordinary business of the interest‑holder includes the lending of money. (4) If: (a) a person holds a beneficial interest in an investment fund as a loan security; and (b) the ordinary business of the person includes the lending of money; and (c) the loan security is enforced; and (d) as a result of the enforcement, the person becomes the holder of the interest; and (e) the person holds the interest for a continuous period (the holding period) beginning at the time when the security was enforced; the person is taken not to hold the interest at all times during so much of the holding period as occurs during whichever of the following periods is applicable: (f) the period of 90 days beginning when the security was enforced; (g) if the Minister, by written notice, allows a longer period—that longer period.