8 Meaning of direct interest holder
An entity is a direct interest holder in relation to an asset if the entity:
together with any associates of the entity, holds an interest of at least 10% in the asset (including if any of the interests are held jointly with one or more other entities); or
holds an interest in the asset that puts the entity in a position to directly or indirectly influence or control the asset.
Note: For interests held by trusts, partnerships, superannuation funds and unincorporated foreign companies, see section 53A.
Exemption for moneylenders etc.
Subsection (1) does not apply to an interest in an asset held by an entity if:
the entity holds the interest in the asset:
solely by way of security for the purposes of a moneylending agreement; or
solely as a result of enforcing a security for the purposes of a moneylending agreement; and
the entity is:
the entity (the first entity) that entered into the moneylending agreement; or
a subsidiary or holding entity of the first entity; or
a person who is (alone or with others) in a position to determine the investments or policy of the first entity; or
a security trustee who holds or acquires the interest on behalf of the first entity; or
a receiver, or a receiver and manager, appointed by, or appointed on instructions from, a person or entity mentioned in any of subparagraphs (i) to (iv).
A moneylending agreement is:
an agreement entered into in good faith, on ordinary commercial terms and in the ordinary course of carrying on a business (a moneylending business) of lending money or otherwise providing financial accommodation, except an agreement dealing with any matter unrelated to the carrying on of that business; or
if the entity:
is carrying on a moneylending business; or
is a subsidiary or holding entity of a corporate entity that is carrying on a moneylending business;
an agreement to acquire an interest arising from a moneylending agreement (within the meaning of paragraph (a)).
Exemption for providers of custodial or depository services
Subsection (1) does not apply to an interest in an asset held by an entity if:
the entity is the provider of a custodial or depository service; and
the entity holds the interest in the asset solely in the entity’s capacity as the provider of a custodial or depository service; and
the holding of the interest does not put the entity in a position to directly or indirectly influence or control the asset.
Exemption for providers of services specified in the rules
Subsection (1) does not apply to an interest in an asset held by an entity if:
the entity is the provider of a service specified in the rules; and
the entity holds the interest in the asset solely in the entity’s capacity as the provider of the service; and
the holding of the interest does not put the entity in a position to directly or indirectly influence or control the asset.