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CORPORATIONS ACT 2001 - SECT 1222K

Retail CCIV test

  (1)   A CCIV satisfies the retail CCIV test in this section if any of the following apply:

  (a)   at least one member of the CCIV is covered by subsection   (2) (about protected retail clients);

  (b)   at least one member of the CCIV is covered by subsection   (3) (about protected clients under custodial arrangements);

  (c)   at least one member of the CCIV is covered by subsection   (4) (about protected members of passport funds).

When a person is a protected retail client of a CCIV

  (2)   For the purposes of paragraph   (1)(a), a person is covered by this subsection in relation to a CCIV if all of the following apply:

  (a)   the person acquires a security (within the meaning of Chapter   7) issued by the CCIV, by way of:

  (i)   an issue of the security to the person (rather than a transfer of the security to the person); or

  (ii)   a transfer of the security to the person in circumstances described in subsection   1012C(5), (6) or (8) (secondary sales that require a Product Disclosure Statement);

  (b)   the person acquired the security as a retail client for the purposes of Chapter   7;

  (c)   the person is not associated (within the meaning of subsection   1241S(3)) with the CCIV;

  (d)   if the person acquired the security by way of an issue--the issue was not made in a situation, or pursuant to an offer made in a situation, to which section   1012E (about small scale offerings) applies.

Note:   Section   1012E applies to financial products that are securities in a CCIV: see subsection   1241S(6).

When a person is a protected client under a custodial arrangement

  (3)   For the purposes of paragraph   (1)(b), a person is covered by this subsection in relation to a CCIV if all of the following apply:

  (a)   an acquisition of a security (within the meaning of Chapter   7) in the CCIV occurs pursuant to an instruction given by the person under a custodial arrangement (within the meaning of section   1012IA);

  (b)   if there were an equivalent direct acquisition (within the meaning of subsection   1012IA(2)) by the person, the person would acquire the security as a retail client for the purposes of Chapter   7;

  (c)   the person is not associated (within the meaning of subsection   1241S(3)) with the CCIV.

When a person is a protected passport fund member

  (4)   For the purposes of paragraph   (1)(c), a person is covered by this subsection in relation to a CCIV if:

  (a)   a sub - fund of the CCIV is an Australian passport fund; and

  (b)   the person became a member of the sub - fund (whether in this jurisdiction or any host economy for the fund):

  (i)   on the expectation that the sub - fund would become an Australian passport fund; or

  (ii)   after the sub - fund became an Australian passport fund; and

  (c)   the person:

  (i)   is not, and has not at any time been, the corporate director of the CCIV; and

  (ii)   is not a related party of an entity that is, or has at any time been, the corporate director of the CCIV.

Note:   See section   1216B for the circumstances in which a person becomes a member of a fund on the expectation that it would become an Australian passport fund.

Regulations

  (5)   The regulations may do either or both of the following:

  (a)   prescribe additional circumstances in which a person is covered by subsection   (2), (3) or (4) in relation to a CCIV;

  (b)   provide that a particular class of person is not covered by subsection   (2), (3) or (4) in relation to a CCIV.


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