Document ID: chunk:federal_register_of_legislation:C2025C00185:section:609:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 609 (pt 1/3)
Character Range: 2438328–2441067

609  Situations not giving rise to relevant interests

Money lending and financial accommodation
 (1) A person does not have a relevant interest in securities merely because of a security interest taken or acquired by the person if:
 (a) the security interest is taken or acquired:
 (i) in the ordinary course of the person's business of the provision of financial accommodation by any means and on ordinary commercial terms; or
 (ii) for the benefit of one or more other persons in relation to financial accommodation provided by them in the ordinary course of their business of the provision of financial accommodation by any means and on ordinary commercial terms; and
 (b) the person whose property is subject to the security interest is not an associate of any other person mentioned in this subsection.
In this subsection, a reference to a security interest includes a reference to a negative pledge.
Note: Sections 11 to 17 define associate.

Nominees and other trustees
 (2) A person who would otherwise have a relevant interest in securities as a bare trustee does not have a relevant interest in the securities if a beneficiary under the trust has a relevant interest in the securities because of a presently enforceable and unconditional right of the kind referred to in subsection 608(8).
Note: This subsection will often apply to a person who holds securities as a nominee.

Holding of securities by financial services licensee
 (3) A financial services licensee does not have a relevant interest in securities merely because they hold securities on behalf of someone else in the ordinary course of their financial services business.

Disposal of securities by financial services licensees
 (3A) A financial services licensee does not have a relevant interest in securities merely because, in the ordinary course of the licensee's financial services business, a person specifically instructs the licensee to:
 (a) dispose of the securities on behalf of the person; or
 (b) enter into a position on behalf of the person under which the licensee has an obligation to make delivery of the securities by dealing in:
 (i) a warrant within the meaning of the regulations; or
 (ii) a financial product that, but for the product not being transferable, would be a warrant within the meaning of the regulations.

Shares covered by buy‑backs
 (4) A person does not have a relevant interest in a company's shares if the relevant interest would arise merely because the company has entered into an agreement to buy back the shares.

Proxies
 (5) A person does not have a relevant interest in securities merely because the person has been appointed to vote as a proxy or representative at a meeting of members, or of a class of members, of