Document ID: chunk:federal_register_of_legislation:C2024C00719:section:15
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 15
Character Range: 79710–82226

15  Meaning of intermediated security and related terms

Meaning of intermediated security
 (1) An intermediated security is the rights of a person in whose name an intermediary maintains a securities account.

Meaning of intermediary
 (2) An intermediary is:
 (a) a person (including a central securities depository) who holds an Australian financial services licence (within the meaning of the Corporations Act 2001) permitting the person, in the course of business or other regular activity, to maintain securities accounts:
 (i) on behalf of others; or
 (ii) on behalf of others as well as on the person's own behalf; or
 (b) a person who operates a clearing and settlement facility under an Australian CS facility licence (within the meaning of the Corporations Act 2001), other than such a person prescribed by regulations made for the purposes of this paragraph; or
 (c) a person (including a central securities depository) who holds a licence issued under the law of a foreign jurisdiction permitting the person, in the course of business or other regular activity, to maintain securities accounts:
 (i) on behalf of others; or
 (ii) on behalf of others as well as on the person's own behalf.
 (3) An intermediary does not include a central bank.
 (4) An intermediary (including a central securities depository) is an intermediary only while acting in the capacity of an intermediary.
 (5) A person is not an intermediary for the purposes of paragraph (2)(a) or (c) merely because the person maintains a securities account on behalf of the issuer of the financial products to which the account relates.
 (6) Without limiting subsection (5), a person is not an intermediary for the purposes of paragraph (2)(a) or (c) merely because the person:
 (a) acts as a central securities depository, registrar or transfer agent for an issuer of a financial product; or
 (b) records details of interests in financial products in the person's own books, being interests credited to securities accounts in the names of other persons for whom the person acts as manager or agent or otherwise in a purely administrative capacity.

Meaning of securities account
 (7) In this Act:
securities account means:
 (a) an account to which interests in financial products may be credited or debited; or
 (b) in the case of an intermediary mentioned in paragraph 15(2)(b)—a record of holdings and transfers of interests in financial products.

Chapter 2—General rules relating to security interests

Part 2.1—Guide to this Chapter