Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p6
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 6/39)
Character Range: 153299–156224

230‑335(1) or (3).

Proportionate hedges
 (4) A specified proportion of a *financial arrangement may be treated as a hedging financial arrangement to the extent to which that proportion of the arrangement satisfies the requirements of subsection 230‑335(1) or (3).

Separate financial arrangements if partial or proportionate hedge
 (5) If a part (or parts), or a proportion (or proportions), of a *financial arrangement is (or are) treated as a *hedging financial arrangement under subsection (2), (3) or (4):
 (a) the part (or each of the parts), or the proportion (or each of the proportions), of the arrangement that is (or are) treated as a hedging financial arrangement is taken to be a separate financial arrangement for the purposes of this Division; and
 (b) the remaining part or proportion (if any) of the arrangement is taken to be a separate financial arrangement for the purposes of this Division.
 (6) Subsection (5) has effect even if there would not be separate *arrangements under subsection 230‑55(4).

230‑345  Requirements not satisfied because of honest mistake or inadvertence
  If a *derivative financial arrangement, or a *foreign currency hedge, that you have would not be a *hedging financial arrangement only because the requirements of paragraph 230‑335(1)(b) or (c), or both, are not satisfied because of an honest mistake or inadvertence, it is nevertheless a hedging financial arrangement if the Commissioner considers this appropriate having regard to:
 (a) your documented risk management practices and policies; and
 (b) your record keeping practices; and
 (c) your accounting systems and controls; and
 (d) your internal governance processes; and
 (e) the circumstances surrounding the mistake or inadvertence (including the steps (if any) taken to correct or address the mistake or inadvertence and the steps (if any) taken to prevent a recurrence); and
 (f) the extent to which the requirements of paragraphs 230‑335(1)(b) and (c) have been met; and
 (g) the objects of this Subdivision.

230‑350  Derivative financial arrangement and foreign currency hedge

Derivative financial arrangement
 (1) A derivative financial arrangement is a *financial arrangement that you have where:
 (a) its value changes in response to changes in a specified variable or variables; and
 (b) there is no requirement for a net investment, or there is such a requirement but the net investment is smaller than would be required for other types of financial arrangement that would be expected to have a similar response to changes in market factors.
Note: Paragraph (a)—a specified variable includes an interest rate, foreign exchange rate, credit rating, index or commodity or financial instrument price.

Foreign currency hedge
 (2) A foreign currency hedge is a *financial arrangement that you have if:
 (a) paragraph (1)(a) is satisfied but paragraph (1)(b) is not; and
 (b) the arrangement hedges a risk