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.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).