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Australian Business Growth Fund

Competitive neutrality investigation report

This investigation report was released on 11 February 2022.

The Australian Government Competitive Neutrality Complaints Office (AGCNCO) received a complaint from OnMarket BookBuilds Pty Ltd relating to alleged breaches of competitive neutrality connected with the Australian Business Growth Fund (ABGF).

The AGCNCO found that the capital treatment of investments in the ABGF does not represent a breach of the Australian Government’s competitive neutrality policy.

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  • Contents
  • Related documents
  • Cover, Copyright and publication detail, Letter of transmittal, Competitive neutrality policy and Contents
  • Overview
  • 1. About the complaint
    • The Australian Business Growth Fund
    • Nature of the complaint
    • What did APRA do?
    • Jurisdiction of the AGCNCO
  • 2. Competitive neutrality issues associated with the Australian Business Growth Fund
    • A breach or not?
    • Did APRA comply with its legislative requirement to balance competitive neutrality?
    • Australian Government joint ventures present a unique challenge for competitive neutrality
  • A. International prudential treatment of equity investment
    • Basel Framework
    • UK Business Growth Fund
    • Canadian Business Growth Fund
  • References

On 21 December 2020, OnMarket Bookbuilds lodged a formal complaint against the Australian Business Growth Fund (ABGF). That complaint alleged that ABGF was not complying with its obligations for regulatory neutrality, as required under the Australian Government’s competitive neutrality policy.

On 18 June 2021, the AGCNCO requested information from the Australian Prudential Regulation Authority (APRA) concerning their regulatory treatment of investments in the ABGF. APRA provided a response on 25 June 2021.

On 5 August 2021, APRA provided a letter in response to additional questions put to it by the AGCNCO.

On 24 August 2021, OnMarket Bookbuilds submitted a letter which responds to APRA's letter and provides new evidence.

Annex 7 is cited in the letter from OnMarket BookBuilds and relates to an email from RBA. It has not been published given its non public status, but its contents confirm the cited observation made in the letter.

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