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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Requirements

HM 15: Maximum investor interests

You could also call this:

“Limit on how much you can invest in a fund class”

You are not allowed to hold more than 20% of the total investor interests in an investor class. This means that if you’re an investor, you can’t own more than one-fifth of all the investments in a particular group.

However, there are some exceptions to this rule. These exceptions are explained in other parts of the law, specifically in Sections HM 21(2) to (4) and HM 22. These sections might allow you to hold more than 20% in some special cases.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2888735.

Topics:
Money and consumer rights > Savings and retirement
Money and consumer rights > Banking and loans
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Part H Taxation of certain entities
Portfolio investment entities: Requirements

HM 15Maximum investor interests

  1. An investor in an investor class must not hold more than 20% of the total investor interests in the class.

  2. Sections HM 21(2) to (4) and HM 22 override this section.

Compare
  • s HL 9(1), (6)
Notes
  • Section HM 15: inserted, on (applying for the 2010–11 and later income years), by section 292(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section HM 15 heading: amended (with effect on 1 April 2010), on , by section 89(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
  • Section HM 15(1): amended (with effect on 1 April 2010), on , by section 89(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
  • Section HM 15(2): amended, on (applying for the 2010–11 and later income years), by section 47(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
  • Section HM 15 list of defined terms investor interest: inserted (with effect on 1 April 2010), on , by section 89(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).