Declaration of substantially Australian investment fund - SAPR 43/2015

Overview

The Airports (Ownership – Interests in Shares) Regulations 1996 were enacted to manage and regulate the ownership of shares in Australian airports, ensuring that critical aviation infrastructure remains under appropriate control. This regulation was introduced to address potential conflicts of interest and to maintain the integrity and security of Australia's aviation system by ensuring that the entities holding significant stakes in airport operations are suitably aligned with Australian interests. The policy objective is to safeguard the nation's aviation infrastructure, ensuring that it is operated by entities that are predominantly Australian-owned and controlled. This was enacted by the Commonwealth Parliament and aims to preserve the strategic importance of aviation assets within Australia.

Scope and Application

The declaration made under the Airports (Ownership – Interests in Shares) Regulations 1996 by the Secretary of the Commonwealth Department of Infrastructure and Transport pertains specifically to the Infrastructure Trust No. 1, managed by AMP Capital Investors Limited, identifying it as a substantially Australian investment fund. This designation is crucial as it determines the extent to which foreign ownership and control regulations apply to investments in Australian infrastructure assets, particularly in the context of airports. The declaration applies to the entities and persons involved in the ownership and management of this investment fund, ensuring compliance with the relevant regulations. The jurisdictional reach of this declaration is aligned with the Commonwealth's regulatory authority over aviation and airport ownership. Notably, the declaration does not specify any exclusions or exemptions, nor does it mention thresholds or subordinate instruments that might extend or restrict its application, thereby reinforcing the legal standing of the Infrastructure Trust No. 1 within the regulatory framework governing substantially Australian investment funds.

Key Provisions

The main operative sections of the Declaration of a Substantially Australian Investment Fund (SAPR 43/2015) are primarily found within the Airports (Ownership – Interests in Shares) Regulations 1996. This declaration, issued under Regulation 2.07, asserts that the Infrastructure Trust No. 1, managed by AMP Capital Investors Limited, is considered a substantially Australian investment fund (section 2.07). This determination is pivotal as it allows the fund to comply with the regulatory requirements concerning foreign ownership and control of Australian airports. The declaration imposes certain obligations and requirements on the entities involved. Firstly, the fund must maintain a substantial Australian presence, ensuring that the majority of its assets and operations are based in Australia. This includes adhering to the investment criteria and maintaining transparency in its operations to ensure compliance with the regulatory standards (section 2.07). The fund manager, AMP Capital Investors Limited, must also ensure that the fund’s activities do not contravene the regulatory framework governing foreign investment in critical infrastructure such as airports. In terms of breaches and penalties, the declaration itself does not outline specific offences or penalties. However, non-compliance with the Airports (Ownership – Interests in Shares) Regulations 1996 could lead to enforcement actions under the relevant sections of the Act. Such actions may include fines, legal proceedings, or the imposition of corrective measures to ensure adherence to the regulatory requirements. The maximum penalties for non-compliance can vary depending on the severity and intent of the breach, with potential fines and sanctions outlined in the relevant legislative provisions governing foreign investment in Australian infrastructure.