Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.11 - TITLE AND TRANSFER  

Division 4 - Transfer of financial products effected through prescribed CS facility  

SECTION 1074E   REGULATIONS MAY GOVERN TRANSFER OF FINANCIAL PRODUCTS IN ACCORDANCE WITH OPERATING RULES OF PRESCRIBED CS FACILITY  

1074E(1)   Transfers that regulations may deal with.  

The regulations may make provision in relation to transfers of financial products effected:

(a) through a prescribed CS facility; and

(b) in accordance with the operating rules of the facility.

1074E(2)   Regulations may make provision in relation to the transfer of financial products.  

The regulations may specify:

(a) the legal effect of a transfer of a financial product through the facility in accordance with its operating rules; and

(b) the rights, liabilities and obligations of a person in relation to the transfer of a financial product through the facility, including the rights, liabilities and obligations of:

(i) the transferor and transferee; and

(ii) any other person involved in the transfer; and

(c) the circumstances in which a person will be taken to be involved in the transfer of a financial product for the purposes of the regulations; and

(d) the circumstances in which a person is required not to register, or give effect to, a transfer through the facility; and

(e) the circumstances in which a person is required not to refuse or fail to register, or give effect to, a transfer through the facility; and

(f) the circumstances in which a transfer through the facility will be taken to have been made in accordance with the rules of a prescribed CS facility; and

(g) the circumstances in which a person will be taken to be the holder of a financial product for the purposes of:

(i) a meeting; or

(ii) paying or transferring money or property to a person because the person holds or held a financial product; or

(iii) issuing a financial product to a person because the person holds or held a financial product; or

(iv) conferring a right on a person because the person holds or held a financial product.

1074E(3)   Rights and liabilities in relation to transfer.  

Without limiting paragraph (2)(b), the regulations may provide that a person:

(a) is taken to have:

(i) agreed to do, to accept or to be bound by a particular thing; or

(ii) done a particular thing; or

(iii) given particular warranties; or

(iv) done particular things on behalf of another person; or

(b) is taken to be authorised to do particular things on behalf of another person (even if the person has died); or

(c) is taken to be bound by a particular act; or

(d) is liable to indemnify another person against particular loss or damage; or

(e) is entitled to assume a particular matter without inquiry.

1074E(4)   Person involved in transfer.  

Without limiting paragraph (2)(c), the regulations may provide for any of the following to be taken to be involved in a transfer of a financial product:

(a) a person who carries on a financial services business and who arranges for the transfer;

(b) a person who operates a financial market on which the financial product is sold;

(c) a person who operates a licensed CS facility through which the product is transferred;

(d) the issuer of the product;

(e) an associate of a person who is involved in the transfer.

The regulations may specify the circumstances in which a person will be taken to be an associate of another person for the purposes of the regulations.

1074E(5)   Offences.  

Without limiting subsection (2), the regulations may provide for offences in relation to:

(a) the lodgment of a transfer document or title document for a financial product with the issuer of the product; or

(b) the use of identifying codes in relation to transfers of financial products; or

(c) contraventions of the operating rules of a prescribed CS facility.

1074E(6)   Civil liability.  

The regulations may also:

(a) provide for the liability of a person who contravenes the operating rules of a prescribed CS facility to compensate a person for loss or damage the person suffers because of the conduct engaged in in contravention of those rules; and

(b) specify the period within which an action for compensation must be begun.

1074E(7)   [ Liability under any other law]  

The regulations do not affect a liability that a person has under any other law.

1074E(8)   Jurisdiction.  

The regulations may apply to conduct engaged in in this jurisdiction or elsewhere.