Declaration of distanced investment fund - SAPR 46/2015

Overview

The Declaration of a Distanced Investment Fund SAPR 46/2015, enacted by the Department of Infrastructure and Regional Development in 2015, serves to address the need for a clear definition and recognition of distanced investment funds in relation to airport investments. This legislative instrument aims to ensure transparency and compliance with existing regulations, particularly those outlined in the Airports (Ownership – Interests in Shares) Regulations 1996. The policy objective of this declaration is to maintain the integrity and governance standards within the aviation sector, safeguarding the interests of all stakeholders involved. By officially recognising Sunsuper Infrastructure Trust No. 1, managed by AMP Capital Investors Limited, as a distanced investment fund, the legislation provides clarity and assurance that the fund's investments adhere to the prescribed regulatory framework.

Scope and Application

The Declaration of a Distanced Investment Fund SAPR 46/2015, issued by the Department of Infrastructure and Regional Development under the Airports (Ownership – Interests in Shares) Regulations 1996, applies specifically to the Sunsuper Infrastructure Trust No. 1, which is managed by AMP Capital Investors Limited. This declaration identifies the fund as a distanced investment fund within the framework of the relevant regulations. The geographic and jurisdictional reach of this Act is national, as it pertains to interests in shares within the context of Australian airports, governed under Commonwealth legislation. The Act itself does not outline specific exclusions or exemptions, but it does extend its application through the referenced subordinate instruments, which provide detailed provisions and guidelines for distanced investment funds. This declaration is a formal acknowledgment of the fund's status under the regulatory framework, ensuring compliance with ownership regulations in relation to airport shares.

Key Provisions

Section 46 of the Airports (Ownership – Interests in Shares) Regulations 1996 (the Regulations) provides the legal framework for declaring distanced investment funds in the context of share ownership in Australian airports. Under section 46, the Secretary of the Department of Infrastructure and Transport has the authority to declare entities as distanced investment funds, ensuring they comply with the regulations that govern indirect ownership and control of airport interests. This declaration allows the specified fund to invest in airport-related assets while maintaining compliance with the prescribed distance requirements. The declaration also ensures that the fund can operate within the legal parameters set by the Act and the Regulations, facilitating structured investment opportunities in the aviation sector. The Act and the Regulations impose several obligations on the parties involved. Firstly, the distanced investment fund must be managed by an entity that adheres to the prescribed management standards and governance requirements. In this case, AMP Capital Investors Limited, as the manager of the Sunsuper Infrastructure Trust No. 1, must ensure that the fund's operations align with the regulatory framework. Additionally, the fund must maintain accurate records of its investments and comply with any reporting obligations specified in the Act and the Regulations. These requirements are designed to ensure transparency and accountability in the management of airport-related investments. Failure to comply with the provisions of the Act and the Regulations may result in significant consequences. The Act stipulates various offences related to non-compliance, which may include civil or criminal penalties. For instance, breaches of the Regulations may lead to financial penalties, with the maximum amount depending on the severity and frequency of the breach. In cases of deliberate or negligent non-compliance, the responsible entity may face criminal charges, which could result in fines or imprisonment. The legislative framework aims to deter non-compliance and ensure that all parties involved in airport-related investments adhere to the established standards and requirements.