In addition, this stricter approach was supplemented by a slight increase in the penalty (by 5 penalty units) for non-compliance with the investment strategy rules. Consequences of non-compliance with FAP guidelines Practically, this means that the agent must review and document these issues each year in his investment strategy. The agent must examine and act on these issues and on a broader investment strategy. If the Commissioner is unable to present the investment strategy on demand or implement the investment strategy, this is a sanction under both guidelines. As a result, the amendments adapt the issues that directors must consider in developing and maintaining their fund`s investment strategy, which must reflect the purpose and circumstances of the Fund. In addition to current mandatory considerations (such as the risk, composition and liquidity of the Fund`s investments), the strategy must be taken into account: we can help your organization review your administrative documents to ensure that your fund complies with FAP guidelines. Please contact our office on (07) 3837 3600 for information or assistance. Only properly equipped and managed resources will prosper under the new regime. As part of the 2009 euro transition, all current PFPs are approved by the Australian Tax Office (ATO) as AFP and approve the FAP guidelines. An important change is that FAPs and ancillary public funds are unable to allocate their resources. Transitional provisions that allowed a PPF transformed with non-corporate agents to transfer its funds to another FAP with only corporate agents will no longer apply.
The approved form is the agreement on compliance with the guidelines of the Auxiliary Public Fund (NAT 74032). To apply for the exercise of the Commissioner`s discretion, a Puaf or FAP must meet all of its annual submission obligations and submit a written application to the Commissioner, which contains the necessary details of the Fund. In the case of the FAP, the Commissioner can now accept the transfer of a paf asset to another auxiliary fund, provided certain requirements are met. This provides more flexibility for FAPs who may want to dissolve, but instead of transferring their net assets to a DGR, they can now be transferred to another PAF or PuAF.