Declaration of a Distanced Investment Fund SAPR 63/2023

Overview

The F2023N00152 Notifiable Instrument, issued under the Airports (Ownership – Interests In Shares) Regulations 1996, was enacted to address the need for greater transparency and oversight in the ownership of shares in Australian airports. The instrument was introduced by Jim Betts, the Secretary of the Commonwealth Department of Infrastructure, Transport, Regional Development, Communications and the Arts, in his capacity under Regulation 4.03 of the aforementioned regulations. The underlying policy objective is to ensure that any substantial interests in airport shares are clearly identified and subject to appropriate scrutiny, thereby maintaining the integrity and safety of Australia's aviation infrastructure. This legislative measure aims to fill the gap in adequately disclosing and monitoring significant investments in airport assets, which could potentially impact the operational and regulatory frameworks governing these critical transport hubs.

Scope and Application

The Notifiable Instrument F2023N00152, which declares specific funds managed by Dexus Investment Services Pty Ltd as Distanced Investment Funds, applies to the entities involved in the management of these funds, specifically Australia Pacific Airports Fund No. 2 and Dexus Diversified Infrastructure Trust A. The scope of the Act is limited to these particular funds and their managers, with the declaration made under the Airports (Ownership – Interests in Shares) Regulations 1996. The Act extends to the Commonwealth jurisdiction, specifically under the purview of the Secretary of the Department of Infrastructure, Transport, Regional Development, Communications, and the Arts. The declared funds, by virtue of this instrument, are recognised as Distanced Investment Funds, which may have specific implications under aviation ownership regulations. The application of this Act is precise, targeting the specified funds and their management, without broader application to other entities or funds, unless further extended by subordinate instruments.

Key Provisions

The primary operative sections of the Notifiable Instrument (F2023N00152) involve the declaration of specific investment funds as Distanced Investment Funds. This declaration is made under the authority of the Secretary of the Commonwealth Department of Infrastructure, Transport, Regional Development, Communications and the Arts, pursuant to Regulation 4.03 of the Airports (Ownership – Interests in Shares) Regulations 1996. Specifically, Section 1 identifies the Secretary as the declarant, and Section 2 lists the funds that have been declared as Distanced Investment Funds, namely the Australia Pacific Airports Fund No. 2 and the Dexus Diversified Infrastructure Trust A. The declaration is effective from the date it is made, which is the 1st day of June 2023. The Act imposes specific obligations on the parties involved, most notably the Secretary who is required to make the declaration under the cited regulation. The Secretary must ensure that the funds listed meet the criteria for being classified as Distanced Investment Funds, which likely involves a process of verification and assessment. Furthermore, the declaration is a formal notification to the relevant stakeholders that these funds are subject to the regulations outlined in the Airports (Ownership – Interests in Shares) Regulations 1996. These obligations necessitate a certain level of due diligence and procedural adherence to ensure the accuracy and legitimacy of the declaration. Any breaches of the regulations governing the classification and management of these Distanced Investment Funds may result in various legal consequences. Although the specific penalties are not detailed in the text, breaches of related regulatory provisions often result in fines or other penalties as stipulated in the Airports (Ownership – Interests in Shares) Regulations 1996. These penalties can vary depending on the nature and severity of the breach but may include substantial monetary fines. Additionally, continued non-compliance could lead to more severe consequences, including potential legal action or the revocation of certain rights or permissions related to the management of the funds.