Document ID: chunk:federal_register_of_legislation:F2021C01045:body:0:p3
Version: federal_register_of_legislation:F2021C01045
Segment Type: other
Provision Reference: 
Character Range: 5150–7771

management rights or to cause another person to become the holder of those rights or rights substantially the same as those rights.

Part 2—Exemptions for management rights schemes

5 Exemption for operators from requirement to register the scheme, hold a financial services licence and the share hawking provisions
(1) An operator of a strata scheme does not have to comply with any of:
(a) subsection 601ED(5) of the Act in relation to the scheme;
(b) subsection 911A(1) of the Act to the extent that it requires the operator to hold an Australian financial services licence covering the provision of general advice in relation to, and dealing in, interests in the strata scheme;

              Note:  ASIC Corporations (Miscellaneous Technical Relief) Instrument 2015/1115 provides relief from subsections 911A(1) and 911B(1) of the Act to a person who provides financial services on behalf of a person who does not need an Australian financial services licence because of an exemption made under section 926A of the Act.
(c) sections 992A of the Act in relation to an offer for issue of interests in the strata scheme.
(2) This exemption may be relied on where all of the following are satisfied:
(a) either:
(i) each strata unit to which the scheme relates can be lawfully used as a residence; or
(ii) the operator has given to ASIC a written statement from an independent real estate agent that, in relation to each strata unit to which the scheme relates, the agent:
(A) would be willing and able to offer the unit for letting at a reasonable rate having regard to the value of the unit; and
(B) would expect that there would be a reasonable degree of occupancy of the unit at that rate;
(b) each investor and the operator may withdraw from the scheme on no more than 90 days' notice;
(c) an investor who withdraws from the scheme will not be bound after their notice under paragraph (b) expires to allow use of their strata unit except for occupation of the unit:
(i) by a person other than the operator or an associate of the operator; and
(ii) under an agreement that the operator made with that person before the notice was given;
(d) each investor may, if they withdraw from the scheme, appoint another person to manage their strata unit;
(e) if the operator is managing the letting of the strata units, the operator has not agreed after the commencement of this section to:
(i) make payments to investors (whether by way of guarantee or otherwise); or
(ii) cover or reimburse in whole or in part (whether under an indemnity or otherwise) payments that are made by any other person to investors,
in relation