Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_2:p5
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 5/21)
Character Range: 65996–68903

short term basis;

(b) acquiring the right or obligation, or similar rights or obligations, and managing the resulting risk by entering into offsetting arrangements that provide a profit margin.

250‑170  Financial arrangement (equity interest or right or obligation in relation to equity interest)

 (1) You also have a financial arrangement if you have an *equity interest. The equity interest constitutes the financial arrangement.

 (2) You also have a financial arrangement if:
 (a) you have, under an *arrangement:
 (i) a legal or equitable right to receive something that is a *financial arrangement under this section; or
 (ii) a legal or equitable obligation to provide something that is a financial arrangement under this section; or
 (iii) a combination of one or more such rights and/or obligations; and
 (b) the right, obligation or combination does not constitute a financial arrangement under section 250‑165.
The right, obligation or combination referred to in paragraph (a) constitutes the financial arrangement.

250‑175  Rights, obligations and arrangements (grouping and disaggregation rules)

Single right or obligation or multiple rights or obligations?

 (1) If you have a right to receive 2 or more *financial benefits, you are taken, for the purposes of this Division, to have a separate right to receive each of those financial benefits.

 (2) If you have an obligation to provide 2 or more *financial benefits, you are taken, for the purposes of this Division, to have a separate obligation to provide each of those financial benefits.

 (3) Subsections (1) and (2) apply for the avoidance of doubt.

Matters relevant to determining what rights and/or obligations comprise particular arrangements

 (4) For the purposes of this Division, whether a number of rights and/or obligations are themselves an *arrangement or are 2 or more separate arrangements is a question of fact and degree that you determine having regard to the following:
 (a) the nature of the rights and/or obligations;
 (b) their terms and conditions (including those relating to any payment or other consideration for them);
 (c) the circumstances surrounding their creation and their proposed exercise or performance (including what can reasonably be seen as the purposes of one or more of the persons involved);
 (d) whether they can be dealt with separately or must be dealt with together;
 (e) normal commercial understandings and practices in relation to them (including whether they are regarded commercially as separate things or as a group or series as whole);
 (f) the objects of this Division.
In applying this subsection, have regard to the matters referred to in paragraphs (a) to (f) both in relation to the rights and/or obligations separately and in relation to the rights and/or obligations in combination with each other.

Example 1: Your rights and obligations under a typical convertible