Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.2 - REGISTRATION OF CCIVs  

Division 1 - Registering a CCIV  

Subdivision D - Retail CCIVs and wholesale CCIVs  

SECTION 1222K   RETAIL CCIV TEST  

1222K(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

1222K(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

1222K(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

1222K(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

1222K(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.