• General entities, financial entities and ADI entities

    A general entity is an entity that is neither a financial entity nor an ADI entity.

    A financial entity is an entity, other than an ADI, that is any of the following:

    • a registered corporation under the Financial Sector (Collection of Data) Act 2001
    • a securitisation vehicle
    • an entity that is either
      • a financial services licensee, within the meaning of the Corporations Act 2001, whose licence covers dealings in at least one of the financial products mentioned in paragraphs 764A(1)(a), (b) and (j) of that Act or dealings in derivatives
      • both of the following
        • exempt under paragraph 911A(2)(h) or (l) of the Corporations Act 2001 from the requirement to hold an Australian financial services licence for dealings in at least one of those financial products or dealings in such derivatives
        • carrying on a business of dealings in securities or such derivatives, but not predominantly for the purposes of dealing in securities or such derivatives with, or on behalf of, the entity's associates.
         
       

    See also:

    Certain financial entities can elect to be treated as an ADI under the thin capitalisation rules. The conditions for making this election are explained in Electing to use the ADI rules.

    An ADI entity is a body corporate that is an authorised deposit taking institution for the purposes of the Banking Act 1959.

    An entity is a securitisation vehicle if all of the following apply:

    • It is established for the purposes of acquiring, funding and holding securitised assets.
    • It acquired the securitised assets from another entity and funded that acquisition wholly by debt.
    • It does not receive any guarantee, security or other form of credit support from any of its associate entities or from the entity it acquired the securitised assets from, or that entity's associate entities.
    • It has issued debt interests; that is, borrowed money, for the sole purpose of acquiring the securitised assets.
    • It has not been issued with any debt interests by any of its associate entities, by the entity it acquired the securitised assets from or by that entity's associate entities.
    • Any arrangements between the entity and its associate entities, the entity it acquired the securitised assets from and that entity's associate entities are reasonably expected to be on arm's length terms.

    See also:

    Last modified: 09 Mar 2016QC 48186