Pooled Development Funds - Genesis BDI Limited - revoked

Overview

The Pooled Development Funds Act 1992 was enacted to provide a framework for the regulation of pooled development funds, aiming to ensure transparency and accountability in the administration of these funds. This legislation was introduced to address the need for a structured regulatory environment that could protect investors and promote confidence in pooled investment vehicles. The Act was passed by the Australian Parliament and its primary policy objective was to establish a system that would safeguard the interests of investors in pooled development funds by requiring registration and ongoing compliance with certain standards. The Act outlines the process for the registration of pooled development funds and provides mechanisms for the revocation of registration where necessary, ensuring that only compliant funds remain in operation.

Scope and Application

The Pooled Development Funds Act 1992 applies to entities, specifically those that were once registered as pooled development funds, although the Act has provisions that can revoke the registration of such funds. The Act governs the conduct and transactions of these entities, ensuring they comply with the regulatory framework established by the legislation. The Act extends its reach across the Commonwealth of Australia, impacting any entity registered under its provisions nationwide. Any revocation of a registration declaration, such as that of GENESIS BDI LIMITED on 21 June 2013, effectively removes the entity from the scope of the Act, subjecting it to other applicable laws and regulations. The Act may also extend or restrict its application through subordinate instruments, which can further define the parameters and implications of compliance and non-compliance with its provisions.

Key Provisions

The Pooled Development Funds Act 1992 outlines the requirements for the registration and operation of pooled development funds in Australia. Section 4 establishes the criteria for what constitutes a pooled development fund, while section 7 details the application process for registration. Section 16 requires funds to maintain certain records and provide regular reports to the relevant authorities, ensuring transparency and accountability in their operations. Under section 23, the Board has the power to revoke a fund's registration if it is found to be in breach of any provision of the Act. The Act imposes various obligations on the parties involved. For instance, section 8 mandates that the Board must assess the application for registration and determine whether the fund meets the criteria outlined in section 4. Section 18 requires funds to ensure that their investments adhere to the guidelines set out in the Act, with a particular focus on fostering innovation and economic development. Additionally, section 21 places a duty on the Board to monitor the activities of registered funds to ensure compliance with the Act's provisions. Failure to comply with the requirements of the Act may result in significant consequences. Under section 30, any person who contravenes a provision of the Act is liable to a penalty, with the maximum penalty varying depending on the specific offence. For example, section 31 outlines that a person who makes a false or misleading statement in an application for registration may be liable to a penalty of up to $10,000. Furthermore, section 35 provides that a person who is found guilty of a criminal offence under the Act may be subject to imprisonment for up to five years. The Act also allows for civil proceedings to be taken for breaches of its provisions, with the potential for damages or injunctions being awarded.