• Widely held requirement

    The 'widely held' requirements differ depending on whether the MIT is:

    Registered MIS that is a retail trust

    A registered MIS that is a retail trust is widely held if it:

    • is listed on an approved securities exchange in Australia
    • has at least 50 members, or
    • has one or more specified widely held entities that together hold more than 25% of the participation interests in the trust and no other type of single entity holds more that 60% of the participation interests.

    Registered MIS that is a wholesale trust

    A registered MIS that is wholesale trust is widely held if it has:

    • at least 25 members, or
    • one or more specified widely held entities that together hold more than 25% of the participation interests in the trust and no other type of single entity holds more that 60% of the participation interests.

    Unregistered MIS that is a wholesale trust

    An unregistered MIS that is a wholesale trust is widely held if it has at least 25 members.

    Specified widely held entity

    A registered MIT can also qualify as widely held if:

    • one or more of the member entities of the trust is a 'specified widely held entity' that holds more than 25% of participation interests in the trust, and
    • no other single entity holds more than a 60% equivalent interest in the trust.

    Broadly, 'participation interest' refers to the greater percentage held by the entity of:

    • the interests (by value) in the trust
    • the control of rights attaching to membership interests
    • the rights to distributions from the trust.

    Specified widely held entities can include:

    • a foreign collective investment trust with at least 50 members
    • a life insurance company or foreign life insurance company
    • a complying super fund, complying approved deposit fund or foreign super fund with at least 50 members
    • a limited partnership, if at least 95% of its membership interests are directly or indirectly held by specified widely held entities and the remaining membership interests are beneficially owned by a general partner that manages the limited partnership
    • a directly or indirectly wholly-owned subsidiary of a specified widely held entity.
      Last modified: 06 Oct 2016QC 47436