Corporations Amendment Regulations 2004 (No. 3) (26 of 2004)

Schedule 1   Amendments commencing on gazettal

[2]   Part 10.2, after Division 51

insert

Division 52 Winding up of fidelity funds if market ceases to operate

10.2.215 ? Winding up of fidelity funds if market ceases to operate

(1) For subsection 1416 (1) of the Act, section 886B of the Act applies in relation to a fidelity fund kept by the operator of a financial market that, at a time in the transition period for the market, ceases to operate (otherwise than because of a merger).

(2) For paragraph 886B (c) of the Act, subsection (3) applies if, at a time during the transition period for a financial market on which derivatives are traded, a person (the first person ) ceases to operate the market (other than because of a merger), and another person (the second person ) that is a related body corporate operates a financial market:

(a) in relation to which, or a segment of which, there are required, after the end of the transition period, to be compensation arrangements approved in accordance with Division 3 of Part 7.5 of the Act; and

(b) on which derivatives are also traded.

(3) The assets of the fidelity fund held by the first person for the market it had operated may be:

(a) transferred to the fidelity fund held by the second person for the market, or segment of the market, that it operates; or

(b) held as, or as part of, the fidelity fund held for the market, or segment of the market, operated by the second person.