Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) An interest in a share is an interest of a prescribed kind if:
(a) the interest exists solely as a result of an action taken by the interest - holder in relation to an investment fund:
(i) in the interest - holder's capacity as trustee or manager of the fund; or
(ii) in the case of a statutory fund within the meaning of the Life Insurance Act 1995 --in the interest - holder's capacity as the life insurance company administering the fund; or
(ii) because the interest - holder has a custodial responsibility of another kind in relation to the fund; and
(b) the interest - holder is a person mentioned in subsection (2).
(2) The interest - holder is a prescribed person if the investment fund in relation to which the person has a function mentioned in subparagraph (1)(a) (i), (ii) or (iii) is a substantially Australian investment fund.
(3) For the purposes of subsection (2), a substantially Australian investment fund is an investment fund that, in the reasonable opinion of the interest - holder, is a fund in which:
(a) in the case of a life insurance company, in its administration of a statutory fund within the meaning of the Life Insurance Act 1995 --no more than 40% of policyholder liabilities of the statutory fund are owed to foreign persons; and
(b) in any other case--a beneficial interest in less than 40% of the capital, and 40% of the income for distribution, is held by foreign persons.