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ASIC Class Order [CO 03/1110]

Authoritative Version
CO 03/1110 Orders/ASIC Class Orders as made
This Class Order exempts an Australian financial services licensee who is an Australian authorised deposit-taking institution (ADI) from the obligation to hold a client's property on trust where: -the property consists of securities; - the licensee holds the securities under a prime brokerage agreement; - the client is a wholesale client; and - the licensee and client agree in writing.
Administered by: Treasury
General Comments: This instrument was published in the Australian Securities and Investments Commission Gazette on 6 January 2004.
Registered 01 May 2007
Gazetted 06 Jan 2004
Date of repeal 27 Sep 2017
Repealed by ASIC (Amendment, Repeal and Transitional) Instrument 17/0839

Australian Securities and Investments Commission

Corporations Act 2001 — Paragraph 992B(1)(a) — Exemption

 

Under paragraph 992B(1)(a) of the Corporations Act 2001 (the “Act”), the Australian Securities and Investments Commission exempts each person who is an Australian ADI (the “prime broker”) from paragraph 984B(1)(a) of the Act to the extent that that paragraph requires the prime broker to hold property to which Division 3 of Part 7.8 of the Act applies on trust for the benefit of a person (the “client”) who is entitled to it where:

(a)        the property consists of securities; and

(b)        the client is a wholesale client; and

(c)        the prime broker holds the property under the terms of a prime brokerage agreement between the prime broker and the client; and

(d)        the prime broker and the client have agreed in writing that the prime broker does not hold the property on trust for the client. 

 

Interpretation

 

In this instrument:

 

“prime brokerage agreement” means a written agreement under which the prime broker makes all of the following services available to the client:

(a)        taking money on deposit and making advances of money in the ordinary course of its banking business as an Australian ADI; and

(b)        disposing of securities to the client subject to an arrangement to reacquire the same or similar securities from the client at a later time; and

(c)        custodial or depository services;

 

“securities” has the meaning given by subsection 92(1) of the Act; and

 

“wholesale client” has the meaning given by subsection 761G(4) of the Act.

 

 

Dated this 16th day of December 2003

 

 

 

 

Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission