Federal Register of Legislation - Australian Government

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ASIC Class Order [CO 02/172]

Authoritative Version
CO 02/172 Orders/ASIC Class Orders as made
This Class Order gives conditional relief from managed investment, licensing, sharehawking and disclosure provisions of the Corporations Act for private broodmare sydications. These schemes are not required to be registered when interests are issued or sold by a promoter or seller who has not issued or sold more than 20 interests in a horse breeding scheme in the previous 12 months.
Administered by: Treasury
General Comments: This instrument was published in the Australian Securities and Investments Commission Gazette on 26 February 2002.
Registered 02 May 2007
Gazetted 26 Feb 2002
Date of repeal 30 Aug 2016
Repealed by ASIC Corporations (Repeal) Instrument 2016/791

Australian Securities and Investments Commission

Corporations Act 2001- Paragraphs 601QA(1)(a), 741(1)(a), 911A(2)(1), 992B(1)(a) and 1020F(l)(a) - Revocation and Exemption

 

1.         Under paragraphs 601QA(1)(a) and 741(1)(a) of the Corporations Act 2001 (the "Act") the Australian Securities and Investments Commission ("ASIC") hereby revokes Class Order [00/205].

 

2.         Under paragraphs 601QA(1)(a), 992B(1)(a) and 1020F(l)(a) of the Act, ASIC hereby exempts any person who operates a Broodmare Scheme ("Operator") from Chapter 5C, sections 992A and 992AA and Part 7.9 (other than sections 1017E, 1017F, 1020D and 1021O) of the Act in relation to:

 

(a)        the operation of a managed investment scheme the principal purpose of which is to breed horses out of broodmares to which the scheme relates (a "Broodmare Scheme");

 

(b)        the making of offers for issue or sale of, or recommendations to acquire, interests in a Broodmare Scheme; and

 

(c)        issuing or selling interests in a Broodmare Scheme,

 

where:

 

(d)        each interest in the Broodmare Scheme is issued as the result of.

 

(i)                    an issue to which section 1477 of the Corporations Law (as continued in force by section 1408 of the Act) applies; or

 

(ii)                     an offer made before the Effective Date which assuming that interests in a Broodmare Scheme were securities to which Part 6D.2 of the Act applied at the time the offer was made, would not have required disclosure to investors because of a provision of section 708 of the Act; or

 

(iii)                 acceptance of a personal offer as defined in subsection 1012E(5) of the Act whether made before or after the Effective Date; or

 

(iv)                 an offer made on or after the Effective Date which does not need a Product Disclosure Statement; and

 

(e)        the Operator together with any of its associates (as defined in Division 2 of Part 1.2 of the Act) have not, at the same time or during the previous 12 months, issued or sold more than 20 interests in aggregate in managed investment schemes, the principal purpose of which is to breed horses.

3.         Under paragraph 911A(2)(1) of the Act, ASIC hereby exempts each person who is an Operator from the requirement to hold an Australian financial


services licence for the provision of financial services in relation to interests in a Broodmare Scheme operated on a basis which meets the requirements in paragraph 2 of this instrument.

 

4.          Under paragraphs 911A(2)(l) and 1020F(1)(a) of the Act, ASIC hereby exempts each person other than an Operator from:

 

(a)                the requirement to hold an Australian financial services licence for the provision of financial services in relation to, and

 

(b)              Part 7.9 of the Act in relation to a recommendation that a client acquires and an offer to arrange the issue of an interest in,

 

a Broodmare Scheme offered on a basis which appears to meet the requirements in paragraph 2 of this instrument except where the person is aware, or reasonably ought to be aware, that those requirements have not been met.

 

 

Interpretation

 

For the purposes of this instrument:

 

"Commencement Date" means the date of the commencement of Schedule 1 to the Financial Services Reform Act 2001; and

 

"Effective Date" means:

 

(a)                  for interests in a Broodmare Scheme in a class which were first issued on or after the Commencement Date - the Commencement Date; and

 

(b)                  for any other interests in a Broodmare Scheme - the date on which the new product disclosure provisions (as defined in section 1438 of the Act) first apply to interests in the Broodmare Scheme.

 

 

Commencement

 

This instrument takes effect on the Commencement Date.

 

 

Dated the 12th day of February 2002

 

 

 

Signed by Brendan Byrne

as a delegate of the Australian Securities and Investments Commission