Document ID: chunk:federal_register_of_legislation:F2023C00841:body:0:p4
Version: federal_register_of_legislation:F2023C00841
Segment Type: other
Provision Reference: 
Character Range: 7857–10533

the scheme acquires any of the following for the dominant purpose of making a financial investment:

(A) a credit facility;

(B) a margin lending facility;

(C) a financial product (other than partly-paid securities) the acquisition of which is likely to result in a debt, whether actual, contingent or prospective, owed by the holder of the product to another person;

(iii) the scheme deals in derivatives excluding dealings covered by one or more of the following sub-subparagraphs:

(A) the dealing is for the dominant purpose of managing foreign exchange or interest rate risk associated with the holding of some or all of the scheme property; or

(B) both of the following apply:

(I) the dealing takes place on a financial market;

(II) the dealing is for the dominant purpose of managing the financial risk arising from deferring a proposed dealing in another financial product that is not a derivative for a period of less than 28 days; or
(C) both of the following apply:

(I) the dealing takes place on a financial market;

(II) the notional derivatives exposure of the scheme (excluding derivatives covered by sub-subparagraph (A) or (B)) at any point in time does not exceed 10% of the net asset value of the scheme at that time unless the exposure is attributable to circumstances that were not  reasonably foreseeable by the responsible entity and the exposure is for a period of no more than 3 consecutive business days;

(For the purposes of sub-subparagraph (B):

(a) a dealing in a derivative for the dominant purpose of managing the financial risk arising from deferring a proposed dealing in another financial product that is not a derivative is taken to be for a period of deferral of 28 days or more if the dealing, and any previous dealing in derivatives that takes place on a financial market, together are for the dominant purpose of managing the financial risk arising from deferring the same proposed dealing in the other financial product for a period of 28 days or more; and

(b) a dealing in a derivative for the dominant purpose of managing the financial risk arising from deferring a proposed dealing in another financial product is not taken to satisfy the sub-subparagraph merely because the derivative has a term of 28 days or more.)

(iv) the scheme sells financial products, whether in or outside this jurisdiction, in relation to which, at the time of the sale:

(A) the seller does not have a presently exercisable and unconditional right to vest the products in a buyer; or

(B) the seller has a presently exercisable and unconditional right to vest the products in a buyer only because of a securities lending arrangement;
(v) both of