Document ID: chunk:federal_register_of_legislation:C2017A00017:clause:1_738zb
Version: federal_register_of_legislation:C2017A00017
Segment Type: clause
Provision Reference: sch 1 cl 738ZB
Character Range: 48922–51538

738ZB  Responsible intermediary's obligations relating to application money

Usual obligations of financial services licensees apply subject to this section
 (1) Subdivision A of Division 2 of Part 7.8, and the other relevant provisions in Part 7.8, apply in relation to money (application money) that is received by the responsible intermediary for a CSF offer in respect of applications made pursuant to the offer, subject to the following provisions of this section.

Obligation to pay application money to company if offer is complete and securities have been issued
 (2) If the CSF offer is complete and the company making the offer has issued securities pursuant to the offer, the responsible intermediary must, as soon as practicable, pay to the company the application money it received for the issue of those securities, less any amount that the intermediary is entitled to retain under the hosting arrangement.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).

Obligation to repay application money to applicants in certain circumstances
 (3) If:
 (a) the CSF offer is closed otherwise than because of paragraph 738N(4)(a), (b) or (c); or
 (b) the CSF offer is closed because of paragraph 738N(4)(a), (b) or (c) and the following conditions are met:
 (i) all periods within which people could withdraw applications made pursuant to the offer have ended;
 (ii) the applications that have been received by the intermediary and that have not been withdrawn or rejected do not represent at least the minimum subscription amount for the offer;
the responsible intermediary must, as soon as practicable, return to the applicants who made applications that have not been withdrawn or rejected all application money received in respect of those applications.
Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1)).
Note 2: For when applications can be withdrawn, see section 738T.
 (4) If:
 (a) a person who has made an application pursuant to the CSF offer withdraws that application; or
 (b) an application made by a person pursuant to the CSF offer is rejected, or is unsuccessful, for any other reason;
the responsible intermediary must, as soon as practicable, return to the applicant the application money received in respect of the application.
Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1)).
Note 2: For when applications can be withdrawn, see section 738T.
 (5) An offence based on subsection (2), (3) or (4) is an offence of strict liability.

Division 6—Additional protections for retail clients