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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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