Document ID: chunk:federal_register_of_legislation:F2018L00204:body:0:p2
Version: federal_register_of_legislation:F2018L00204
Segment Type: other
Provision Reference: 
Character Range: 2820–5625

in conjunction with a sale facility, through which persons (participating holders) who hold financial products in the class of financial products to which the sale facility relates can acquire, by way of transfer, additional financial products in that class.
       sale facility means a facility through which persons (participating holders) who hold financial products in a class of financial products and who have elected to participate in the facility can dispose of financial products in that class.

       Part 2—Exemption

5 Exemptions for sale facility and related purchase facility
Operation of a sale facility or a related purchase facility
(1) A person (the operator) who operates a sale facility or related purchase facility does not have to comply with subsection 601ED(5) of the Act in relation to the facility.
    Provision of financial services in relation to a sale facility or related purchase facility
(2) An operator providing financial services in relation to a sale facility or related purchase facility does not have to comply with:
(a) subsection 911A(1) of the Act for the provision of the following  financial services:
(i) dealing in an interest in the facility;
              (ii) the provision of general advice in relation to an interest in the facility; and
           (b) Divisions 2 to 5 of Part 7.9 of the Act in relation to an interest in the facility; and
           (c) where the facility is  a sale facility—Division 5A of Part 7.9 in relation to an invitation to participate in the facility.
Where exemptions apply
(3) The exemptions in subsections (1) and (2) apply where all of the following are satisfied:
(a) the financial products that may be acquired or disposed of through the facility:
(i)  are shares, or interests in a managed investment scheme, that are admitted to quotation on a licensed market (the relevant market) or approved foreign market (the relevant market); and
(ii) are issued by the operator or a related body corporate of the operator;
(b) where the facility is a sale facility—under the terms of the facility all of the following apply:
(i) the financial products (the relevant financial products) of participating holders to be disposed of through the facility are pooled;
(ii) a broker disposes of the relevant financial products in the ordinary course of trading on the relevant market;
(iii)  each participating holder is paid their proportion of the proceeds of the disposal, net of expenses, as soon as practicable and in any event within eight weeks after the date on which the operator received the participating holder's election to participate in the facility;
(c) where the facility is a related purchase facility—under the terms of the facility all of the following apply:
(i) the money of the participating holders to be used