Document ID: chunk:federal_register_of_legislation:F2024L00305:body:0:p3
Version: federal_register_of_legislation:F2024L00305
Segment Type: other
Provision Reference: 
Character Range: 4799–7449

fee that is payable in relation to a withdrawal from the ETF divided by the number of shares in the ETF to which the withdrawal relates.

       Part 2—Exemption

5 Unequal treatment in withdrawal from an ETF
(1) The responsible entity of an ETF that is a registered scheme and the corporate director of an ETF that is a sub-fund of a CCIV do not have to comply with paragraph 601FC(1)(d) or 1224D(2)(b) of the Act (as applicable) to the extent that it would prevent the responsible entity or the corporate director from permitting only authorised participants to withdraw from the ETF.
(2) The exemption in subsection (1) applies where both the following are satisfied:
(a) there is a Product Disclosure Statement in relation to interests or shares in the ETF that are or will be able to be traded on a financial market operated by ASX or Cboe that contains statements to the effect that:
(i) the responsible entity or corporate director will not treat members of the same class equally to the extent that it restricts withdrawal from the ETF to authorised participants; and
(ii) except in exceptional circumstances, only authorised participants may withdraw from the ETF, but other members may sell their interests or shares on the financial market operated by ASX or Cboe; and
(iii) when interests or shares in the ETF are suspended from trading on the financial market operated by ASX or Cboe for more than 5 consecutive trading days, members have a right to withdraw from the ETF and receive payment for their interests or shares in money within a reasonable time of a request unless any of the following apply:
(A) the ETF is being wound-up;
(B) the ETF is not liquid;
(C) the responsible entity or the CCIV suspends withdrawals in accordance with the constitution of the ETF;
(b) the constitution of the ETF does not permit a withdrawal fee per security to be payable by a member who is not an authorised participant that is greater than the withdrawal fee per security that would generally be payable by an authorised participant receiving redemption proceeds in cash while interests or shares in the ETF are quoted when withdrawing the minimum parcel.

              Note: Paragraph 5(2)(b) applies regardless of whether the withdrawal fees for the ETF are calculated on a per interest or a per share basis or otherwise.

6 Unequal treatment in provision of information to authorised participants
(1) The responsible entity of an ETF that is a registered scheme and the corporate director of an ETF that is a sub-fund of a CCIV does not have to comply with paragraph 601FC(1)(d) or 1224D(2)(b) of the Act (as applicable) to the extent that