Document ID: chunk:federal_register_of_legislation:C2015C00151:clause:3_1017be
Version: federal_register_of_legislation:C2015C00151
Segment Type: clause
Provision Reference: sch 3 cl 1017BE
Character Range: 56181–57906

1017BE  Obligations relating to investment of assets of registrable superannuation entities—giving notice to acquirers under custodial arrangements
 (1) This section applies if:
 (a) a person (the first party) enters into an arrangement (the core arrangement) with another person (the second party); and
 (b) under the terms of the core arrangement, the second party is the acquirer in relation to a custodial arrangement under which the first party is the provider; and
 (c) the first party knows, or reasonably ought to know that, under the core arrangement, the second party may acquire a financial product in this jurisdiction; and
 (d) the first party knows, or reasonably ought to know, that an asset that is the subject of the core arrangement is, or is derived from, an asset of a registrable superannuation entity; and
 (e) the core arrangement is not of a kind prescribed by the regulations as an arrangement to which this section does not apply.
 (2) The first party must, at the time the core arrangement is entered into, notify the second party of the following:
 (a) that an asset that is the subject of the core arrangement is, or is derived from, the assets of a registrable superannuation entity;
 (b) details of the trustee, or the trustees, of the registrable superannuation entity.
Note: Section 1017BC may apply in relation to an arrangement under which the second party actually acquires the financial product.
 (3) In this section:
acquirer, in relation to a custodial arrangement, has the same meaning as in subsection 1012IA(1).
custodial arrangement has the same meaning as in subsection 1012IA(1).
provider, in relation to a custodial arrangement, has the same meaning as in subsection 1012IA(1).