Document ID: chunk:federal_register_of_legislation:F2021C00160:body:0:p12
Version: federal_register_of_legislation:F2021C00160
Segment Type: other
Provision Reference: 
Character Range: 30423–33437

Subject to subclause (4D), an entity is also an interposed vehicle in relation to a product or investment option if:

                (a) the Product Disclosure Statement for the product or investment option or any other information issued by the responsible person relating to the product or investment option that has been given or may be reasonably expected to be given to retail clients refers to the product or option as being directly or indirectly invested in or through an entity (whether specified or not) other than an infrastructure entity which the responsible person believes has a majority of its assets invested in physical infrastructure referred to in paragraphs (a) to (j) of the definition of infrastructure entity in subclause (6); and

                (b) the reference relates to the entity.

            (4D) An entity is not an interposed vehicle because of subclause (4C) if:

                (a) either of the following is satisfied:

                    (i) the entity is admitted to the official list of a prescribed financial market or a financial market operated outside of this jurisdiction that is regulated by a foreign government or an agency of a foreign government;

                    (ii) the issuer of the securities or financial products of the entity has applied, or stated in a regulated disclosure that they will apply, for such admission; and

                (b) the securities or financial products of the entity are, or are to be, held under an investment strategy for the product or investment option that:

                    (i) relates to, or is publicly measured by the responsible person by reference to, a widely used index (reference index) of securities or financial products of entities that satisfy subparagraph (a)(i); and

                    (ii) is a strategy of holding directly or indirectly securities or financial products:

                         (A) of entities that satisfy paragraph (a); and

                         (B) that represent at least 80% by value of the net assets attributable to the investment strategy; and

                (c) the value of all the securities or financial products of the entity that are in the same class as the securities or financial products held under the investment strategy does not exceed 30% of the value of the reference index.

                 Note: If paragraphs (a) to (c) are satisfied in relation to an entity, the entity may still be an interposed vehicle because of provisions of clause 101B other than subclause (4C).

        Platform test

            (5) Despite anything in subclauses (1) to (4D), an entity will not be an interposed vehicle in relation to a product or investment option if all of the following apply:

                (a) the Product Disclosure Statement for the product or an investment option states that a holder of the product may give instructions, directions or requests for financial products to be acquired;

                (b) the responsible person for the