Certain interests in trustsCertain interests in trusts

Certain interests in trusts

19. An equitable or a beneficial interest of a locally incorporated insurer in a trust (not being an interest arising where legal title is held by a custodian or an interest in a managed investment scheme) is excluded from being an asset in Australia if:

(a) the trustee does not reside in Australia; or

(b) under the trust deed, the trustee has the right to suspend or delay the redemption of a unit or trust property pending sale of any of the trust’s assets outside Australia; or

(c) any amounts payable to the locally incorporated insurer under the trust are payable outside Australia; or

(d) the locally incorporated insurer cannot enforce its rights against the trustee in an Australian court.[11]

20. An equitable or beneficial interest of a locally incorporated insurer in a trust (not being an interest arising where legal title is held by a custodian) is also excluded from being an asset in Australia if:

(a) the interest is a proprietary interest in a particular asset or particular assets (rather than merely an interest in the due administration of the trust); and

(b) the asset or each asset would not be an asset in Australia if it were held directly by the locally incorporated insurer (either because it would be excluded under another provision of this Prudential Standard or because it would not otherwise be an asset in Australia within the meaning of paragraph 28(a) of the Act).[12]