85Prohibition of avoidance schemes

85 Prohibition of avoidance schemes

Prohibition (1) A person must not enter into, commence to carry out, or carry out, a scheme if the person entered into, commenced to carry out, or carried out the scheme or any part of the scheme with the intention that: (a) the scheme would result, or be likely to result, in an artificial reduction in the market value ratio of the fund’s in‑house assets; and (b) that artificial reduction would avoid the application of any provision of this Part to the fund. Civil penalty provision (2) Subsection (1) is a civil penalty provision as defined by section 193, and Part 21 therefore provides for civil and criminal consequences of contravening, or being involved in a contravention of, that subsection. Validity of transaction not affected by contravention of subsection (1) (3) A contravention of subsection (1) does not affect the validity of a transaction. Scheme (4) In this section:

scheme means:

(a) any agreement, arrangement, understanding, promise or undertaking:
(i) whether express or implied; or
(ii) whether or not enforceable, or intended to be enforceable, by legal proceedings; and
(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.