Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) For paragraph 992C(1)(a) of the Act, a person is exempt from the requirement in paragraph 985E(1)(c) of the Act to make an assessment if the margin lending facility mentioned in paragraph 985E(1)(a) or (b) of the Act is a facility mentioned in subregulation (2):
(a) in respect of the full amount of the loan, including any interest, fees and charges; and
(b) in relation to which the client has not taken out a loan to fund the secured property contributed by the client for establishing the margin lending facility.
(2) For subregulation (1), the facility is a standard margin lending facility under the terms of which:
(a) the credit provided must be applied wholly:
(i) to acquire one or more marketable securities, or a beneficial interest in one or more marketable securities; or
(ii) to repay another credit facility, under the terms of which the credit provided was applied wholly to acquire one or more marketable securities, or a beneficial interest in one or more marketable securities; and
(b) the secured property mentioned in paragraphs (c) and (d) of that subsection:
(i) consists wholly of one or more marketable securities, or a beneficial interest in one or more marketable securities; or
(A) partly of one or more marketable securities, or a beneficial interest in one or more marketable securities; and
(B) partly of cash given to the provider and held in trust for the client for the sole purpose of servicing obligations under the facility; and
(c) the liability of the client to the provider is limited to
the rights relating to the secured property.