Document ID: chunk:federal_register_of_legislation:F2024C00757:front:0:p11
Version: federal_register_of_legislation:F2024C00757
Segment Type: other
Provision Reference: 
Character Range: 27185–30337

licensee reasonably believes that:
                  (c) had the client invested directly in the scheme, the scheme would not have been required to have been registered; and
                  (d) had all interests in the scheme held in custodial arrangements been held by the clients (as defined in section 1012IA) of those arrangements, the scheme would not have been required to be registered.
                  Note: Under section 601ED, a managed investment scheme does not generally need to be registered if it has no more than 20 members. If interests held through custodial arrangements such as IDPSs, IDPS-like schemes and nominee and custody services had been acquired directly, the scheme may have required registration as it may have had more than 20 members.
           Acquisitions under direction from client
              (26) The licensee must not, and must ensure that any custodian acting on its behalf does not, acquire accessible securities for a client under a direction of a client as part of the IDPS unless:
                  (a) in relation to acquisitions of accessible securities:
                     (i) for an acquisition of shares resulting from a CSF offer—subsection (26H) is satisfied; and
                     (ii) otherwise—subsection (26A) or (26E) is satisfied; and
                  (b) in relation to acquisitions of accessible financial products:
                     (i) subsection (26B), (26C), (26D), (26E) or (26F) is satisfied; and
                     (ii) subsection (26G) is satisfied.
              (26A) This subsection is satisfied if:
                  (a) both of the following are satisfied:
                     (i) the licensee reasonably believes that the client has been given a copy of the disclosure document for the accessible securities that would have been required had the accessible securities been offered to the client directly at the time of the acquisition of the accessible securities;
                     (ii) the licensee has no reason to believe that the disclosure document is defective as if it were prepared at that time; or
                  (b) the licensee reasonably believes that the accessible securities could lawfully have been offered and issued or sold, as the case may be, to the client directly without the client being required to be given a disclosure document other than because of subsection 708(1).
              (26B)  This subsection is satisfied if:
                  (a) the licensee reasonably believes that the client has been given a copy of the Product Disclosure Statement for the accessible financial product that would have been required had the financial product been offered to the client directly at the time of the acquisition of the financial product; and
                  (b) the licensee has no reason to believe that the Product Disclosure Statement is defective as if it were prepared at the time of the acquisition.
              (26C)  This subsection is satisfied if:
                  (a) the licensee reasonably believes that the accessible financial product could lawfully have been offered and issued or sold, as the case may be,