ASIC Corporations (Securities Lending Arrangements) Instrument 2021/821 (Cth)

ASIC Corporations (Securities Lending Arrangements) Instrument 2021/821 I, Anthony Graham, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.

Date 27 September 2021

Anthony Graham

Contents

Part 1—Preliminary 1 Name of legislative instrument 2 Commencement 3 Repeal 4 Authority 5 Definitions Part 2—Declaration 6 Securities lending—relevant interests 7 Securities lending—situations not giving rise to relevant interests 8 Securities lending—substantial holding information

Part 1—Preliminary

1 Name of legislative instrument This is the ASIC Corporations (Securities Lending Arrangements) Instrument 2021/821.

2 Commencement This instrument commences on the day after it is registered on the Federal Register of Legislation. Note: The register may be accessed at www.legislation.gov.au.

3 Repeal This instrument is repealed on 1 October 2026.

4 Authority This instrument is made under subsection 673(1) of the Corporations Act 2001.

5 Definitions In this instrument: Act means the Corporations Act 2001.

Part 2—Declaration

6 Securities lending—relevant interests Part 6C.1 of the Act applies to all persons as if section 608 were modified or varied by, after subsection (8), inserting: "Securities lending arrangements (8A) If securities are subject to: (a) an arrangement (the securities lending arrangement) under which: (i) one entity (the lender) agrees that it will: (A) deliver the securities to another entity (the borrower) or to an entity nominated by the borrower; and (B) vest title in those securities in the entity to which they are delivered; and (ii) the borrower agrees that it will, after the lender does the things mentioned in subparagraph (i): (A) deliver the securities (or equivalent securities) to the lender or to an entity nominated by the lender; and (B) vest title in those securities (or those equivalent securities) in the entity to which they are delivered; or (b) an arrangement (the securities lending arrangement) under which: (i) the securities are held by one entity (the borrower) or an entity nominated by the borrower, on behalf of another entity (the lender); and (ii) the lender agrees that the borrower may deal in the securities on its own behalf or on behalf of a person; and (iii) the borrower agrees that it will at some future time: (A) deliver the securities (or equivalent securities) to the lender or to an entity nominated by the lender; and (B) vest title in those securities (or those equivalent securities) in the entity to which they are delivered; and the securities are subsequently disposed of by the borrower or an entity nominated by the borrower, resulting in that entity ceasing to have a relevant interest in the securities, the lender of the securities under the securities lending arrangement is taken to have a relevant interest in the securities (or equivalent securities) that the borrower has agreed to deliver to, and vest title in, the lender or an entity nominated by the lender. (8B) If: (a) an agent lender is authorised under an authorisation agreement to act on behalf of a lender in relation to a securities lending arrangement between the lender and a borrower; and (b) in the case of a securities lending arrangement referred to in paragraph (8A)(a)—the agent lender, acting under the authorisation agreement, delivers and vests title in securities the subject of the securities lending arrangement to the borrower or an entity nominated by the borrower; and (c) the securities are subsequently disposed of by the borrower or an entity nominated by the borrower, resulting in that entity ceasing to have a relevant interest in the securities; the agent lender is taken to have a relevant interest in the securities (or equivalent securities) that the borrower has agreed to deliver to, and vest title in, the lender or an entity nominated by the lender. (8C) In subsection (8B): agent lender: see the definition of authorisation agreement. authorisation agreement means an agreement between a lender and another entity (agent lender) under which the lender authorises the agent lender to act on the lender's behalf in relation to securities lending arrangements, including by: (a) negotiating and arranging securities lending arrangements for the lender with a borrower (which may be the agent lender itself acting in the capacity as borrower under a securities lending arrangement); and (b) transferring securities held by or on behalf of the lender to the borrower on the terms of a securities lending arrangement without giving further notice of such transfer to the lender; and (c) terminating securities lending arrangements (including without prior instructions from the lender). borrower the same meaning as in paragraphs 608(8A)(a) and (b). lender has the same meaning as in paragraphs 608(8A)(a) and (b). securities lending arrangement has the same meaning as in paragraphs 608(8A)(a) and (b).".