12Reporting of breaches and changes

12 Reporting of breaches and changes

Reporting breaches and changes to home regulator (1) The operator of a passport fund must notify the home regulator for the fund in writing within 7 days after it becomes aware that, without there being a breach of the Passport Rules for the home economy or any host economy for the fund, a limit set in the following rules has been exceeded for a period of 7 days without being remedied: (a) the rules in Division 6.3 (portfolio allocation); (b) the rules in Division 6.4 (limits on exposure).

Note: Under subregulation 1.0.03A(2) of the Corporations Regulations 2001, documents that must be lodged with ASIC under the Passport Rules for this jurisdiction must be lodged in the prescribed form.

(2) The operator of a passport fund must notify the home regulator for the fund in writing as soon as practicable and in any event within 7 days after it becomes aware that a breach of the Passport Rules for the home economy or any host economy for the fund has occurred, or will occur in relation to the fund, and that breach: (a) might reasonably be regarded as significant including having regard to any other breaches; or (b) when considered on its own or together with any related breach, adversely affects the value of the assets of the fund by more than 1%. Reporting breaches to host regulator (3) Subsection (4) applies to the operator of a passport fund where the laws of a particular host economy for the fund (the relevant host economy) apply to the fund. (4) The operator of a passport fund must notify the home regulator for the fund and the relevant host regulator as soon as practicable and in any event within 7 days after it becomes aware of a breach of the laws of the relevant host economy in relation to the fund, and that breach: (a) might reasonably be regarded as significant including having regard to any other breaches; or (b) when considered on its own or together with any related breach, adversely affects as much of the value of the assets of the fund as is attributable to members of the fund in the relevant host economy by more than 1%. Reporting other changes (5) If an event listed in the table in subsection (6) occurs, the event must be notified to the home regulator, and each host regulator, for the passport fund by the entity listed in the table as soon as practicable and in any case not later than 7 days after it became aware of the event having occurred. (6) In the following table, an associate means a related party except for a person or entity under paragraphs 57(5)(g) to 57(5)(i) in relation to the definition for a related party.