Document ID: chunk:federal_register_of_legislation:F2021C01045:body:0:p5
Version: federal_register_of_legislation:F2021C01045
Segment Type: other
Provision Reference: 
Character Range: 9796–12352

units, the operator has entered into a written agreement with each investor which includes provisions to the effect of those set out in section 10;
(i) either:
(i) on 1 March 2000 there was no person who had bought or agreed to buy a strata unit in relation to the scheme and who, before agreeing to buy, had been offered an interest in the scheme; or
(ii) a majority of scheme members have agreed in writing that the operator may rely on this exemption;
           (j) the operator has not failed to comply with section 7 in relation to the strata scheme, unless ASIC has notified the operator in writing after the failure that that this paragraph does not apply in relation to the breach the subject of the failure.
(3) In working out if there is a majority of scheme members for the purposes of subparagraph (2)(i)(ii):
           (a) the operator and its associates are not be counted; and
           (b) a majority is based on the entitlement of scheme members to vote at body corporate meetings if there is a body corporate for the property to which the scheme relates, and otherwise is based on each member having one vote.

6 General conditions on operators other than promoter developers
(1) The operator must ensure that:
(a) any part of the property of the scheme that is cash is promptly deposited with an Australian ADI on trust for investors in a trust account; and
(b)  the account is subject to audit as to whether the money has been dealt with in accordance with the terms of the trust by a registered company auditor at least annually.
(2) Where a FFE Fund has been established for an investor, the operator must ensure that:
(a) the money comprising the Fund is held on trust for the investor in a trust account with an Australian ADI and subject to audit as to whether the money has been dealt with in accordance with the terms of the trust by a registered company auditor at least annually; and
(b) the balance of the Fund is promptly returned to the investor at the termination of the scheme or upon the investor's withdrawal from the Scheme, whichever occurs first.
       (3) If the operator is managing the letting of the strata units, the operator must, as soon as practicable, and in any event within 6 months after, the end of a reporting period, give each investor who was issued an interest in the scheme as a retail client, a written statement for the reporting period which details any transactions in relation to the investor's interest in the scheme.
       (4) If the operator is managing the letting of the strata units,