Document ID: chunk:federal_register_of_legislation:C2025C00012:clause:1_1222k:p1
Version: federal_register_of_legislation:C2025C00012
Segment Type: clause
Provision Reference: sch 1 cl 1222K (pt 1/2)
Character Range: 17231–19828

1222K  Retail CCIV test
 (1) A CCIV satisfies the retail CCIV test in this section if any of the following apply:
 (a) at least one member of the CCIV is covered by subsection (2) (about protected retail clients);
 (b) at least one member of the CCIV is covered by subsection (3) (about protected clients under custodial arrangements);
 (c) at least one member of the CCIV is covered by subsection (4) (about protected members of passport funds).

When a person is a protected retail client of a CCIV
 (2) For the purposes of paragraph (1)(a), a person is covered by this subsection in relation to a CCIV if all of the following apply:
 (a) the person acquires a security (within the meaning of Chapter 7) issued by the CCIV, by way of:
 (i) an issue of the security to the person (rather than a transfer of the security to the person); or
 (ii) a transfer of the security to the person in circumstances described in subsection 1012C(5), (6) or (8) (secondary sales that require a Product Disclosure Statement);
 (b) the person acquired the security as a retail client for the purposes of Chapter 7;
 (c) the person is not associated (within the meaning of subsection 1241S(3)) with the CCIV;
 (d) if the person acquired the security by way of an issue—the issue was not made in a situation, or pursuant to an offer made in a situation, to which section 1012E (about small scale offerings) applies.
Note: Section 1012E applies to financial products that are securities in a CCIV: see subsection 1241S(6).

When a person is a protected client under a custodial arrangement
 (3) For the purposes of paragraph (1)(b), a person is covered by this subsection in relation to a CCIV if all of the following apply:
 (a) an acquisition of a security (within the meaning of Chapter 7) in the CCIV occurs pursuant to an instruction given by the person under a custodial arrangement (within the meaning of section 1012IA);
 (b) if there were an equivalent direct acquisition (within the meaning of subsection 1012IA(2)) by the person, the person would acquire the security as a retail client for the purposes of Chapter 7;
 (c) the person is not associated (within the meaning of subsection 1241S(3)) with the CCIV.

When a person is a protected passport fund member
 (4) For the purposes of paragraph (1)(c), a person is covered by this subsection in relation to a CCIV if:
 (a) a sub‑fund of the CCIV is an Australian passport fund; and
 (b) the person became a member of the sub‑fund (whether in this jurisdiction or any host economy for the fund):
 (i) on the expectation that the sub‑fund would become an