Document ID: chunk:federal_register_of_legislation:F2017C00585:body:0:p2
Version: federal_register_of_legislation:F2017C00585
Segment Type: other
Provision Reference: 
Character Range: 2794–5807

the Explanatory Memorandum to the Taxation Laws Amendment Bill (No 5) 2003.
Further requirements for relying on the licensing exemption
(2)  The exemption applies where any of the following are satisfied:
           (a) the service consists of issuing a securitisation product where all of the following apply:
              (i) both of the following apply:
                  (A) the securitisation product relates to a securitisation transaction for managing some or all of the economic risk associated with assets held by the securitisation entity;
                  (B)  each other securitisation product issued by the securitisation entity relates to that securitisation transaction or another securitisation transaction for managing some or all of the economic risk associated with assets held by the securitisation entity;
              (ii) the issue is to a person who either:
(A) holds an Australian financial services licence; or
(B) is exempt from holding an Australian financial services licence under this instrument or ASIC Corporations (Repeal and Transitional) Instrument 2016/396 or any exemption under paragraph 911A(2)(h) or (l) or subsection 926A(2) of the Act that includes reference to the exempted person complying with or reasonably believing that they comply with the regulatory requirements of a foreign jurisdiction;
(iii) at the time of issuing the product the securitisation entity has taken all reasonable steps to ensure that:
(A) the securitisation product; and
                  (B) any other securitisation product that has been issued by the securitisation entity since 11 January 2005,
are not subsequently acquired by a person as a retail client;
(b) the service consists only of dealing in derivatives or foreign exchange contracts (or both) and all of the following apply:
(i) the service does not involve the making of a market for derivatives or foreign exchange contracts;
              (ii) the dealing is entered into for the purpose of managing a financial risk that arises in the ordinary course of the securitisation business;
              (iii)  the counterparty for the dealing is a person as a wholesale client;
(c) the service is providing a custodial or depository service in relation to financial products held by the securitisation entity as trustee for the holders of the securitisation products and both the following apply:
(i) the securitisation entity has not issued any of the securitisation products to a person as a retail client;
              (ii) the entity has from the later of 1 July 2005 and when the entity first issues a securitisation product, taken all reasonable steps to ensure that the securitisation products are not acquired by a person as a retail client;
           (d) the service:
(i) is dealing on behalf of the holders of the securitisation products in financial products held by the securitisation entity as trustee for those holders of the securitisation products; and
              (ii) is not dealing by issuing or acquiring