Winding up the portfolio investment entity (PIE)
The entity will cease to be a PIE if:
- there is a temporary breach at the end of a quarter, after the first 6 months of the commencement of the PIE or the class of the PIE, and
- the temporary breach is not corrected before the end of the next quarter, unless within that next quarter the PIE announces that it intends to wind up within 12 months.
If the temporary breach is significant and has occurred due to an event or circumstance within the control of the entity, and the requirements in 1 and 2 above are satisfied, the entity will cease to be a PIE.
If the entity breaches the:
- investment types
- income sources, or
- maximum shareholding investments requirements
it will cease to be a PIE on the last day of the first quarter.
If an investor class breaches the:
- maximum shareholding investments
- minimum number of investors, or
- maximum investor interest requirements
the entity will cease to be a PIE on the last day of the next quarter following the first quarter.
The PIE does not have to advise us of a temporary breach, provided the breach is corrected within the above timeframe.
Date published: 29 Sep 2010
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