Acquisition of accessible investments thAcquisition of accessible investments that are interests in unregistered scheme

Acquisition of accessible investments that are interests in unregistered scheme

(7) The responsible entity of an IDPS-like scheme must not, and must ensure that any custodian does not, acquire accessible investments as part of the scheme that are: (a) interests in a managed investment scheme that is not a registered scheme; or (b) interests in a scheme that would be a managed investment scheme but for paragraph (e) of the definition of managed investment scheme in section 9; unless the responsible entity reasonably believes that: (c) had the particular member invested directly in the scheme, the scheme would not have been required to have been registered; and (d) had all interests in the scheme held in custodial arrangements been held by the clients of those arrangements, the scheme would not have been required to be registered.

Note: Under section 601ED, a managed investment scheme does not generally need to be registered if it has no more than 20 members. If interests held through custodial arrangements such as IDPSs, IDPS-like schemes and nominee and custody services had been acquired directly, the scheme may have required registration as it may have had more than 20 members.