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Law Council of Australia

Business Law Section

Exempting interfunding from mandatory foreign investment notification

This submission concerns the Exposure Draft “Foreign Acquisitions and Takeovers Amendment (Interfunding Exemption) Regulations 2024” dated 2 April 2024 (Draft Regulation). The submission is made by the Foreign Investment Committee of the Business Law Section of the Law Council of Australia (Committee).

The proposed Draft Regulation inserts new section 40A into the Foreign Acquisitions and Takeovers Regulation 2015 (Principal Regulations).

Life Funds utilising interfunding may not be adequately covered by the proposed new section 40A. The application to Life Funds is presumably uncontroversial so the application should be expressly covered.

Life Funds utilising interfunding will not be covered by the proposed new section 40A as they do not utilise registered managed investment schemes or registered superannuation funds in their funding structure. As matter of policy, the application to Life Funds should be uncontroversial. However, as Life Funds are statutory funds for the benefit of owners of policies (and not trusts) we suggest this be done by way of an expansion to section 36 of the Principal Regulations, which already deals with Life Funds.

Read the full submission below.

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