Ceasing the portfolio investment entity (PIE)
Cancellations
An entity may choose at any time to cease being a PIE by giving a notice to the Commissioner using the online form. An election to cease being a PIE is effective from the later of:
- the date on which the entity became a PIE
- the date nominated in the notice
- the date the Commissioner received the notice.
Date of cessation
The cessation of a PIE by election is effective from the date on which the election to cease being a PIE is effective, provided the election is made more than 12 months after the PIE commences.
If the election to cease is effective from a date that is less than 12 months after the PIE commenced, then the entity is treated as if it never became a PIE.
PIE status is lost immediately if the PIE commits a permanent breach of the:
- residence requirement or
- life insurance business requirement or
- investor interest adjustment requirement or
- imputation crediting requirement for listed PIEs.
If a temporary breach of eligibility requirements is not remedied and the breach is significant and within the PIEs control, PIE status is lost on the last day of the first quarter. Otherwise PIE status is lost on the last day of the second quarter.
Date published: 26 Feb 2010
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