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CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS    View history reference

PART 7.9 - FINANCIAL PRODUCT DISCLOSURE AND OTHER PROVISIONS RELATING TO ISSUE, SALE AND PURCHASE OF FINANCIAL PRODUCTS    View history reference

Division 5B - Disclosure etc. in relation to short sales covered by securities lending arrangement of listed section 1020B products    View history reference

Note: Section 1020B prohibits certain short sales of section 1020B products.

SECTION 1020AA  DEFINITIONS  

 View history reference

1020AA(1)  [ Definitions]  


In this Division:

crossing : a crossing of section 1020B products is a sale of section 1020B products made by a financial services licensee:


(a) on behalf of both the buyer and the seller of the products; or


(b) on behalf of the buyer of the products and on its own behalf as seller of the products; or


(c) on behalf of the seller of the products and on its own behalf as buyer of the products.

section 1020B products  has the meaning given by subsection 1020B(1) .

securities lending arrangement  means an arrangement under which:


(a) one entity (the lender ) agrees that it will:


(i) deliver particular securities, managed investment products or other financial products to another entity (the borrower ) or to an entity nominated by the borrower; and

(ii) vest title in those products in the entity to which they are delivered; and


(b) the borrower agrees that it will, after the lender does the things mentioned in paragraph (a):


(i) deliver the products (or equivalent products) to the lender or to an entity nominated by the lender; and

(ii) vest title in those products (or those equivalent products) in the entity to which they are delivered.

1020AA(2)  [ Treating agreement to sell as the sale]  


To avoid doubt, for the purposes of this Division, treat the entering into of an agreement to sell section 1020B products as the sale of the products.

1020AA(3)  [ Treating sales made by licensee for a person]  


To avoid doubt, for the purposes of this Division, treat a financial services licensee as making a sale on behalf of a person if the sale is, in economic substance, made by the licensee for the person.

Example:

A request that the sale be made is passed from the person to the financial services licensee through a chain of intermediaries.

1020AA(4)  [ Crossing of section 1020B products treated as being on a licensed market]  


For the purposes of this Division, treat a crossing of section 1020B products as being made on a licensed market.


 



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