Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:201:p6
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 201 (pt 6/26)
Character Range: 1620756–1623522

Part 9.12—Matters relating to regulations

9.12.01  Exemptions from Chapter 7
  Subsection 1043A(1) of the Act does not have effect in relation to the following:
 (a) the obtaining by a director of a share qualification;
 (b) the application for, and acquisition under that application of, financial products of a body corporate by, or by a trustee for, employees of that body, or of a body corporate that is related to the first‑mentioned body under a superannuation scheme, pension fund or other scheme established solely or primarily for the benefit of the employees;
 (c) a transaction entered into by a person in accordance with his or her obligations under an underwriting agreement;
 (d) a person holding the office of:
 (i) personal representative of a deceased person; or
 (ii) liquidator; or
 (iii) trustee under Parts IV, X and XI of the Bankruptcy Act 1966;
  in respect of a transaction entered into by the person in good faith in the performance of the functions of the office;
 (e) a sale of financial products under:
 (i) a mortgage or charge of the financial products; or
 (ii) a mortgage, charge, pledge or lien of documents of title to the financial products.

9.12.02  Exemption from provisions of Chapter 7—CLS Bank
 (1) For section 1368 of the Act, the following provisions of Chapter 7 of the Act do not have effect in relation to the following transactions by CLS participants in the facility operated CLS Bank International:
 (a) section 794E—settlement of non‑cash payments between CLS participants;
 (b) Part 7.3—settlement of non‑cash payments between CLS participants in relation to the provision or transfer of:
 (i) a security, or a managed investment product; or
 (ii) a financial product mentioned in paragraph 764A(1)(ba), (c), (j) or (k) of the Act.
 (2) Subregulation (1) is subject to the conditions set out in this regulation.
 (3) CLS Bank International must:
 (a) operate under section 25A of the Federal Reserve Act of the United States of America; and
 (b) be regulated as a bank by the Board of Governors of the Federal Reserve System of the United States of America.
 (4) An Australian entity that is a CLS participant in the facility operated by CLS Bank International:
 (a) must be regulated by APRA; and
 (b) must not use the services of CLS Bank International as a retail client.
 (5) CLS Bank International must tell the Reserve Bank of Australia in writing as soon as practicable after any of the following circumstances happen:
 (a) CLS Bank International receives a request for an Australian entity to become a CLS participant in the facility it operates;
 (b) CLS Bank International proposes approving an additional Australian entity or Australian resident as a shareholder;
 (c) CLS Bank International notifies