Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.5.29

Cash settlement of claim: transfer other than ASTC-regulated transfer

             (1)  This regulation applies if:

                     (a)  the SEGC allows a claim under subregulation 7.5.27(5) in respect of a purchase of securities by a dealer on behalf of a buying client; and

                     (b)  it is not reasonably practicable for the SEGC to obtain from the dealer settlement documents in relation to the purchase before the end of:

                              (i)  if the operating rules of a participating market licensee of which the dealer is a participant, being those operating rules as in force when the SEGC allows the claim, prescribe a period, for this regulation, in relation to a class of claims that includes the claim--that period; or

                             (ii)  in any other case--such period as the SEGC, having regard to all the circumstances of the claim, considers reasonable; and

                     (c)  it is not reasonably practicable for the SEGC to obtain otherwise than from the dealer settlement documents in relation to the purchase before the end of that period because:

                              (i)  there exists at no time during that period an orderly market in those securities, whether because that dealing in those securities is suspended or for any other reason; or

                             (ii)  the total number of those securities offered for sale on financial markets of participating market licensees or Exchange bodies at times during that period when there exists an orderly market in those securities is insufficient.

             (2)  The SEGC must satisfy the claim by paying to the claimant the amount that, when the claimant became entitled to make the claim, was the amount of the actual pecuniary loss suffered by the claimant in respect of the purchase.



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