Document ID: chunk:federal_register_of_legislation:F2023C00850:body:0:p4
Version: federal_register_of_legislation:F2023C00850
Segment Type: other
Provision Reference: 
Character Range: 7865–10733

on its behalf does not, acquire accessible financial products for a client as part of a nominee and custody service that are:
           (a) interests in a managed investment scheme that is not a registered scheme; or
           (b) interests in a scheme that would be a managed investment scheme but for paragraph (e) of the definition of managed investment scheme in section 9;
           unless the licensee reasonably believes that:
           (c) had the client invested directly in the scheme, the scheme would not have been required to have been registered; and
           (d) had all interests in the scheme held in custodial arrangements been held by the clients (as defined in section 1012IA) of those arrangements, the scheme would not have been required to be registered.
              Note: Under section 601ED a managed investment scheme does not generally need to be registered if it has no more than 20 members. If interests held through an IDPS, an IDPS-like scheme or a nominee and custody service had been acquired directly, the scheme may have required registration as it may have had more than 20 members.
Acquisition of accessible securities under direction from client
(3) The licensee must not, and must ensure that any custodian acting on its behalf does not, acquire accessible securities for a client as part of a nominee and custody service under a direction from the client unless:
           (a)     for an acquisition of shares resulting from a CSF offer—subsection (3A) is satisfied; and
           (b) otherwise:
              (i) both of the following are satisfied:
                  (A)    the licensee reasonably believes that the client has been given a disclosure document for the accessible securities that would have been required had the accessible securities been offered to the client directly at the time of the acquisition of the accessible securities;
                  (B)    the licensee has no reason to believe that the disclosure document is defective as if it were prepared at that time; or
              (ii)    the licensee reasonably believes that the accessible securities could lawfully have been offered and issued or sold, as the case may be, to the client directly without the client being required to be given a disclosure document other than because of subsection 708(1).
(3A) This subsection is satisfied if the licensee reasonably believes that:
(a) the client:
(i) has accessed the platform of a CSF intermediary containing the CSF offer document for the CSF offer and the licensee has no reason to believe the document is defective as at the time of the acquisition of the shares; and
 (ii) has completed the acknowledgement that would be required under paragraph 738ZA(3)(b) if the client had applied as a retail client; and
(iii) was able to use the relevant communication facility for the CSF offer