Document ID: chunk:federal_register_of_legislation:F2023C00841:body:0:p9
Version: federal_register_of_legislation:F2023C00841
Segment Type: other
Provision Reference: 
Character Range: 20557–23609

disposal of the products; or

                         (IV) two or more of the interposed entities;

                  (For the purposes of sub-subparagraph (B), the calculation of the number of interposed entities through which a retail CCIV (in respect of a sub-fund) acquires an economic interest in a financial product is to be performed by reference to each separate vertical stream of interposed entities);
                  (ii) the retail CCIV (in respect of the sub-fund) acquires any of the following for the dominant purpose of making a financial investment:
                     (A) a credit facility;
                     (B) a margin lending facility;
                     (C) a financial product (other than partly-paid securities) the acquisition of which is likely to result in a debt, whether actual, contingent or prospective, owed by the holder of the product to another person;
                  (iii) the retail CCIV (in respect of the sub-fund) deals in derivatives excluding dealings covered by one or more of the following sub-subparagraphs:
                     (A) the dealing is for the dominant purpose of managing foreign exchange or interest rate risk associated with the holding of some or all of the assets of the sub-fund; or
                     (B) both of the following apply:
                         (I) the dealing takes place on a financial market;
                         (II) the dealing is for the dominant purpose of managing the financial risk arising from deferring a proposed dealing in another financial product that is not a derivative for a period of less than 28 days; or
                     (C) both of the following apply:
                         (I) the dealing takes place on a financial market;
                         (II) the notional derivatives exposure of the retail CCIV (in respect of the sub-fund) (excluding derivatives covered by sub-subparagraph (A) or (B)) at any point in time does not exceed 10% of the net asset value of the sub-fund at that time unless the exposure is attributable to circumstances that were not  reasonably foreseeable by the corporate director of the retail CCIV and the exposure is for a period of no more than 3 consecutive business days;

                            (For the purposes of sub-subparagraph (B):

                       (a) a dealing in a derivative for the dominant purpose of managing the financial risk arising from deferring a proposed dealing in another financial product that is not a derivative is taken to be for a period of deferral of 28 days or more if the dealing, and any previous dealing in derivatives that takes place on a financial market, together are for the dominant purpose of managing the financial risk arising from deferring the same proposed dealing in the other financial product for a period of 28 days or more; and

                       (b) a dealing in a derivative for the dominant purpose of managing the financial risk arising from deferring a proposed dealing in another financial product is not taken to