Document ID: chunk:federal_register_of_legislation:F2016L01946:body:0:p1
Version: federal_register_of_legislation:F2016L01946
Segment Type: other
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Character Range: 0–2921

ASIC Corporations (ASX-listed Schemes On-market Buy-backs) Instrument 2016/1159
I, Stephen Yen PSM, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.
Date: 9 December 2016

Stephen Yen

Contents

Part 1—Preliminary
1 Name of legislative instrument
2 Commencement
3 Authority
4 Definitions
Part 2—Declaration
5 Requirements for on-market buy-backs
6 Takeovers

Part 1—Preliminary

1 Name of legislative instrument
This instrument is ASIC Corporations (ASX-listed Schemes On-market Buy-backs) Instrument 2016/1159.

2 Commencement
This instrument commences on the day after it is registered on the Federal Register of Legislation.
Note: The register may be accessed at www.legislation.gov.au.

3 Authority
This instrument is made under subsections 601QA(1) and 655A(1) of the Corporations Act 2001.

4 Definitions
In this instrument:
Act means the Corporations Act 2001.

       Part 2—Declaration

5 Requirements for on-market buy-backs
 Chapter 5C of the Act applies to a responsible entity as if Part 5C were modified or varied by, after Part 5C.6, inserting:

"Part 5C.6A—On-market buy-backs by listed schemes

Division 1—Preliminary

601KF Application of this Part
           This Part applies to the purchase of interests in a listed managed investment scheme by the responsible entity of the scheme where the purchase takes place in the ordinary course of trading on the financial market of ASX Limited (ASX) and the purchase price is paid from scheme property. For the purposes of this Part, such a purchase is referred to as a buy-back.

              Division 2—Requirements for buy-backs

601KG Constitutional provisions about buy-backs
           If the responsible entity of the scheme is to have the power to buy back an interest in the scheme, the power must be specified in the scheme's constitution.

601KH Procedural requirements for buy-backs
(1) A responsible entity must not buy back an interest in the scheme otherwise than in accordance with the scheme's constitution and this section.
(2) A responsible entity may buy back an interest if it does not materially prejudice the responsible entity's ability to pay its creditors in relation to liabilities incurred or acquired by it as responsible entity of the scheme.
(3) A responsible entity that buys back an interest in the scheme:
(a) must only buy the interest:
(i) in the ordinary course of trading on the financial market of ASX; and
(ii) if the buy-back is covered by subsections (5) to (7) or subsection (8); and
Note: A purchase by way of a special or priority crossing, among other types of transactions, is not in the ordinary course of trading.
(b) if it reasonably believes that it complies with the listing rules of the ASX that apply to buy-backs as if:
(i) the scheme were a company included in the official list of the financial market of ASX; and
(ii) interests in