ASIC Corporations (Division 3 Securities and Division 4 Financial Products) Instrument 2015/1030 About this compilation Compilation No. 2 This is a compilation of ASIC Corporations (Division 3 Securities and Division 4 Financial Products) Instrument 2015/1030 as in force on 5 March 2019. It includes any commenced amendment affecting the legislative instrument to that date. This compilation was prepared by the Australian Securities and Investments Commission. The notes at the end of this compilation (the endnotes) include information about amending instruments and the amendment history of each amended provision. Contents Part 1—Preliminary 1 Name of legislative instrument 3 Authority 4 Definitions Part 2—Declaration 5 Application of Division 4 of Part 7.11 of the Act 6 Application of Part 7.11 of the Act to interests in a registered scheme Endnotes Endnote 1—Instrument history Endnote 2—Amendment history Part 1—Preliminary 1 Name of legislative instrument This instrument is ASIC Corporations (Division 3 Securities and Division 4 Financial Products) Instrument 2015/1030. 3 Authority This instrument is made under subsection 1075A(1) of the Corporations Act 2001. 4 Definitions In this instrument: Act means the Corporations Act 2001. AQUA Quote Display Board has the meaning given by the operating rules of ASX. ASX means ASX Limited. Chi-X means Chi-X Australia Pty Ltd. depositary interests means units of beneficial ownership in financial products of the following kind that are issued for the purpose of enabling the financial products to be recorded and transferred in accordance with the operating rules of ASX Settlement Pty Limited: (a) securities issued by a foreign company; or (b) foreign scheme products. Division 4 financial product has the meaning given by subregulation 7.11.03(1) of the Regulations. eligible products means: (a) warrants that are: (i) able to be traded on the financial market operated by ASX or Chi-X; or (ii) admitted to the AQUA Quote Display Board. (b) interests in a managed investment scheme that is not required to be registered under Chapter 5C of the Act because of an instrument made under section 601QA of the Act and that are: (i) able to be traded on the financial market operated by ASX or Chi-X; or (ii) admitted to the AQUA Quote Display Board. (c) shares in, or debentures of, a foreign company that are quoted on the financial market operated by ASX or Chi-X; (d) shares and debentures quoted on the financial market operated by ASX that are issued by a body referred to in section 1073C of the Act; (da) transferable custody receipts; (e) depository interests in relation to financial products held by CHESS Depositary Nominees Pty Limited in accordance with the operating rules of ASX Settlement Pty Limited. foreign quoted shares, in relation to transferable custody receipts, means shares of a foreign company that is listed on the New York Stock Exchange, NASDAQ Global Market or NASDAQ Global Select Market, where the shares are in a class of shares that are able to be traded on at least one of those financial markets. foreign scheme product means a financial product that: (a) is referred to in paragraph 764A(1)(ba) of the Act; and (b) relates to a managed investment scheme which is: (i) operated by a foreign company; and (ii) included in the official list of the financial market operated by ASX. Regulations means the Corporations Regulations 2001. transferable custody receipts means units of beneficial ownership in foreign quoted shares where the units: (a) arise from a custodial and sub-custodial arrangement under which: (i) a custodian holds, directly or indirectly, the foreign quoted shares on behalf of, or in trust for, a financial services licensee that holds an Australian financial services licence that covers the provision of a custodial or depository service; and (ii) the financial services licensee holds their equitable rights or interests in the shares arising from the custodial arrangement mentioned in subparagraph (i) on behalf of, or in trust for, a person; and (b) are issued without the involvement of the issuer of the foreign quoted shares; and (c) are able to be traded on the financial market operated by Chi-X. warrant has the meaning given by subregulation 1.0.02(1) of the Regulations. Part 2—Declaration 5 Application of Division 4 of Part 7.11 of the Act Division 4 financial products (1) Part 7.11 of the Act applies to eligible products as if Division 4 of that Part were modified or varied by, after section 1074B, inserting: "1074BB Transfers effected through ASX Settlement (1) The following financial products are financial products the transfer of which will be effected through ASX Settlement Pty Limited under the regulations: (a) warrants that are: (i) able to be traded on the financial market operated by ASX Limited or Chi-X Australia Pty Ltd; or (ii) admitted to the AQUA Quote Display Board; (b) interests in a managed investment scheme that is not required to be registered under Chapter 5C because of an instrument made under section 601QA and that are: (i) able to be traded on the financial market operated by ASX Limited or Chi-X Australia Pty Ltd; or (ii) admitted to the AQUA Quote Display Board. (c) shares in, or debentures of, a foreign company that are quoted on the financial market operated by ASX Limited or Chi-X Australia Pty Ltd; (d) shares and debentures quoted on the financial market operated by ASX Limited that are issued by a body referred to in section 1073C; (da) transferable custody receipts; (e) depository interests in relation to financial products held by CHESS Depositary Nominees Pty Limited in accordance with the operating rules of ASX Settlement Pty Limited. (2) In this section: depositary interests means units of beneficial ownership in financial products of the following kind that are issued for the purpose of enabling the financial products to be recorded and transferred in accordance with the operating rules of ASX Settlement Pty Limited: (a) securities issued by a foreign company; or (b) foreign scheme products. foreign quoted shares, in relation to transferable custody receipts, means shares of a foreign company that is listed on the New York Stock Exchange, NASDAQ Global Market or NASDAQ Global Select Market, where the shares are in a class of shares that are able to be traded on at least one of those financial markets. foreign scheme product means a financial product that: (a) is referred to in paragraph 764A(1)(ba); and (b) relates to a managed investment scheme which is: (i) operated by a foreign company; and (ii) included in the official list of the financial market operated by ASX Limited. transferable custody receipts means units of beneficial ownership in foreign quoted shares where the units: (a) arise from a custodial and sub-custodial arrangement under which: (i) a custodian holds, directly or indirectly, the foreign quoted shares on behalf of, or in trust for, a financial services licensee that holds an Australian financial services licence that covers the provision of a custodial or depository service; and (ii) the financial services licensee holds their equitable rights or interests in the shares arising from the custodial arrangement mentioned in subparagraph (i) on behalf of, or in trust for, a person; and (b) are issued without the involvement of the issuer of the foreign quoted shares; and (c) are able to be traded on the financial market operated by Chi-X Australia Pty Ltd. warrant has the meaning given by subregulation 1.0.02(1) of the regulations.". Note 1: Paragraph 7.11.03(1)(b) of the Regulations provides that a financial product is a Division 4 financial product if the financial product is declared by ASIC, under section 1075A of the Act, to be a financial product the transfer of which will be effected through ASTC under the Regulations. Note 2: ASX Settlement Pty Limited was previously known as ASX Settlement and Transfer Corporation Pty Limited (ASTC). Transferable custody receipts and warrants (2) Part 7.11 of the Act applies to: (aa) transferable custody receipts; (a) warrants that are able to be traded on the financial market operated by ASX or Chi-X; and (b) warrants that are admitted to the AQUA Quote Display Board; as if subregulations 7.11.03(4) and (5) of the Regulations were omitted. Rights (3) Part 7.11 of the Act applies to Division 4 financial products that are rights (within the meaning of subregulation 7.11.28(4) of the Regulations) as if regulation 7.11.28 of the Regulations were modified or varied as follows: (a) before subregulation (1) insert: "(1A) If a proper ASTC transfer of a Division 4 financial product that is a right takes effect at a particular time, the transferee is taken to have agreed at that time to accept the right subject to the terms and conditions on which the transferor held the right immediately before that time, being the terms and conditions that are applicable as between the issuer in relation to, and the holder for the time being of, the right."; (b) in subregulation (1) omit "takes effect at a particular time", substitute "has taken effect, and at that time (the payment time) or at a later time (the payment time) the transferee makes payment to the issuer in relation to the rights of the application money or, in the case of company options, the exercise price"; (c) in subregulations (1), (2) and (3) omit "at that time" (wherever occurring), substitute "at the payment time"; (d) in subregulation (4) before the definition of right, insert: "company option means a right that is an assignable option to acquire by way of issue shares or debentures in a company on payment of an exercise price.". 6 Application of Part 7.11 of the Act to interests in a registered scheme Part 7.11 of the Act applies to interests in a registered scheme as if paragraph 7.11.08(b) of the Regulations were modified or varied by omitting "the Australian Stock Exchange Limited." and substituting "ASX Limited or Chi-X Australia Pty Ltd.". Endnotes Endnote 1—Instrument history Instrument number Date of FRL registration Date of commencement Application, saving or transitional provisions 2015/1030 10/11/2015 (see F2015L01771) 11/11/2015 2017/571 9/11/2017 (see F2017L01458) 10/11/2017 - 2019/45 4/3/2019 (see F2019L00236) 5/3/2019 - Endnote 2—Amendment history ad. = added or inserted am. = amended LA = Legislation Act 2003 rep. = repealed rs. = repealed and substituted Provision affected How affected Section 1 am. 2019/45 Section 2 rep. s48D LA Section 4 am. 2017/571 Subsection 5(1) am. 2017/571 Subsection 5(2) am. 2017/571 Subsection 5(2)(a) am. 2017/571 Section 6 ad. 2019/45