Federal Register of Legislation - Australian Government

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ASIC Class Order [CO 05/737]

Authoritative Version
CO 05/737 Orders/ASIC Class Orders as made
In Class Order [CO 05/737], the Australian Securities and Investments Commission declares that loyalty schemes constituting non-cash payment facilities are not financial products for the purposes of Chapter 7 of the Corporations Act. [CO 05/737] also grants unconditional relief from the registration requirement under Chapter 5C of the Corporations Act where a loyalty scheme constitutes a managed investment scheme.
Administered by: Treasury
General Comments: This instrument was gazetted in the Australian Securities and Investments Commission Gazette on 15 November 2005.
Registered 21 Nov 2005
Tabling HistoryDate
Tabled HR28-Nov-2005
Tabled Senate28-Nov-2005
Date of repeal 23 Mar 2016
Repealed by ASIC Corporations (Repeal) Instrument 2016/212

Australian Securities and Investments Commission
Corporations Act 2001 — Paragraph 601QA(1)(a) and Subsection 765A(2) — Exemption and Declaration

 

Enabling legislation

1.         The Australian Securities and Investments Commission makes this instrument under paragraph 601QA(1)(a) and subsection 765A(2) of the Corporations Act 2001 (the Act).

Title

2.         This instrument is ASIC Class Order [CO 05/737].

 

Commencement

3.         This instrument commences on the date it is registered under the Legislative Instruments Act 2003.

Note:   An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register). The FRLI may be accessed at http://www.frli.gov.au/.

 

Declaration—Loyalty schemes

4.         A facility through which, or through the acquisition of which, a person makes non-cash payments in relation to which all of the following apply is not a financial product for the purposes of Chapter 7 of the Act:

(a)        the facility is issued as part of a scheme the sole or main purpose of which is to promote the purchase of goods from, or the use of the services of, the issuer of the facility or another person;

(b)        a person who holds the facility is allocated credits (however described and whether or not a monetary value is expressly attributed to the credits) as a result of the purchase of goods from, or the use of the services of, the issuer of the facility or the other person;

(c)        the credits allocated under the facility can be used to make a payment or part payment for goods or services or to obtain some other benefit;

(d)        the facility is not part of another financial product.

Exemption—Registration as managed investment scheme

5.         A person does not have to comply with subsection 601ED(1) of the Act in relation to a facility covered by paragraph 4.

 

Interpretation

6.       In this instrument:

 

          facility has a meaning affected by section 762C of the Act.

 

issuer has the meaning given by subsection 761E(4) of the Act.

 

makes non-cash payments has the meaning given by section 763D of the Act.

 

 

Dated this 14th day of November 2005
Signed by Brendan Byrne

as a delegate of the Australian Securities and Investments Commission