Federal Register of Legislation - Australian Government

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ASIC Class Order [CO 10/1037]

Authoritative Version
  • - F2011L00059
  • No longer in force
CO 10/1037 Orders/ASIC Class Orders as made
This Class Order amends ASIC Class Order [CO 10/29] clarifying how a person should calculate their short position in a product in circumstances where the person, acting in more than one capacity, has products and has obligations to deliver products.
Administered by: Treasury
Registered 06 Jan 2011
Tabling HistoryDate
Tabled HR08-Feb-2011
Tabled Senate08-Feb-2011
Date of repeal 09 Aug 2013
Repealed by Treasury (Spent and Redundant Instruments) Repeal Regulation 2013

Australian Securities and Investments Commission
Corporations Act 2001 — Paragraph 1020F(1)(c) — Variation

 

Enabling legislation

1.       The Australian Securities and Investments Commission makes this instrument under paragraph 1020F(1)(c) of the Corporations Act 2001 (the Act).

 

Title

 

2.       This instrument is ASIC Class Order [CO 10/1037].

 

Commencement

 

3.       This instrument commences on the later of:

 

(a)           17 January 2011; and

 

(b)          the day the instrument 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/.

 

Variation

 

4.       ASIC Class Order [CO 10/29] is varied as follows:

 

(a)     after subparagraph 4(a) insert:

 

“(aaa)     omit subregulation 7.9.99(2), substitute:

 

“(2)        In this Division, a short position is a position in relation to a section 1020B product in a listed entity where the quantity of the product which a person, acting in a particular capacity, has is less than the quantity of the product which the person, acting in the same capacity, has an obligation to deliver.

 

Note:   A person may have more than one position in relation to the product on a particular day. For example, a person will have two positions in relation to the product if the person, acting in a particular capacity, has a position and the person, acting in a different capacity, also has a position.”;

 

(b)     after subparagraph 4(ab) insert:

 

“(ac)    after subregulation 7.9.99(4) insert:

 

“(4A)   In subregulation (2), the person has the product or has an obligation to deliver the product only if the person is acting in one or more of the following capacities:

 

(a)     the person is acting on their own behalf; or

 

(b)     the person is acting on behalf of another person except where that other person has the sole discretion to decide whether the product will be sold; or

 

(c)     another person is acting on behalf of the person but only where the person has the sole discretion to decide whether the product will be sold.

 

(4B)     For the purposes of subregulation (2):

 

(a)     subject to paragraph (b), the capacities referred to in each of the paragraphs in subregulation (4A) are taken to be separate capacities;

 

(b)     where a person is acting on their own behalf under paragraph (4A)(a) and another person is acting on the person’s behalf under paragraph (4A)(c), the person is taken to be acting in the same capacity; and

 

(c)     in paragraph (4A)(b), where a person is acting on behalf of a person under an arrangement and is acting on behalf of another person under a different arrangement, the person is taken to be acting in a different capacity for each arrangement.”;”.

 

 

 

 

Dated this 24th day of December 2010

 

 

 

 

 

Signed by Andrew Fawcett

as a delegate of the Australian Securities and Investments Commission