Corporations Regulations 2001
View history note
Hide history note[ CCH Note: Pursuant to the Corporations Amendment Regulations 2001 (No 4) (SR 2001 No 319) effective 11 March 2002, Chapter 7 (Securities) comprising reg 7.1.01 - 7.15.01 and Chapter 8 (The futures industry) comprising reg 8.1.01 - 8.7.03 are replaced by a new Chapter 7 (Financial services and markets) comprising reg 7.1.01 - 7.12.01. As the subject matter of the new Chapter 7 relates to the new financial services reform regime, " inserted " has been used in the history notes for each provision, and all references to the former provisions have been removed.]
This regulation applies to a person (the selling client ) if:
(a) a dealer enters into a reportable transaction on behalf of the selling client; and
(b) the reportable transaction is a sale of securities; and
(c) a transfer of the securities concerned pursuant to the sale would not be an ASTC-regulated transfer; and
(d) at the end of the prescribed period for the transaction:
(i) if subparagraph (ii) does not apply - the selling client has supplied to the dealer settlement documents for the purposes of the sale; and
(ii) if the dealer has been suspended by the participating market licensee concerned or ACH, and that suspension has not been removed - the selling client has supplied, or is ready, willing and able to supply, to the dealer settlement documents for the purposes of the sale; and
(iii) the dealer's obligations to the selling client in respect of the sale, in so far as they relate to the consideration for the sale, have not been discharged.
The selling client may make a claim in respect of the sale.
The selling client may make a single claim under this regulation in respect of 2 or more sales.
A claim made under subregulation (3) is to be treated for subregulation (5) as if it consisted of a separate claim in respect of each of the sales to which it relates.
The SEGC must allow the claim if the SEGC is satisfied that:
(a) subregulation (1) entitles the selling client to make the claim; and
(b) the selling client has:
(i) supplied to the dealer settlement documents in relation to the sale under the agreement for the sale; or
(ii) supplied to the SEGC settlement documents in relation to the sale for the purposes of the claim; and
(c) the dealer's obligations to the selling client in respect of the sale, in so far as they relate to the consideration for the sale, have not been discharged.
If the SEGC allows a claim, the SEGC must pay to the selling client the amount of the consideration less so much (if any) of the total of any brokerage fees and other charges, and any stamp duty and other duties and taxes, payable by the selling client in connection with the sale as has not already been paid by the selling client.
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