Document ID: chunk:federal_register_of_legislation:F2024L00305:body:0:p5
Version: federal_register_of_legislation:F2024L00305
Segment Type: other
Provision Reference: 
Character Range: 9699–12429

exemption in subsection (1) applies where the responsible entity or CCIV (in respect of the sub-fund):
(a) complies with section 675 of the Act as if the scheme or CCIV were an unlisted disclosing entity; and
(b) includes statements in any Product Disclosure Statement for interests or shares in the ETF to the effect that the responsible entity or CCIV (in respect of the sub-fund) will comply with the continuous disclosure requirements of the Act as if the scheme or CCIV were an unlisted disclosing entity.

Note 1: Section 1017B of the Act applies to a CCIV subject to the modifications set out in Division 4 of Part 8B.7: see sections 1241 and 1241Z of the Act.

Note 2: Section 675 of the Act has a modified operation in relation to securities in a CCIV: see section 1240F of the Act.

Part 3—Declaration

8 Relevant interest
Chapters 6 and 6C of the Act apply to all persons as if section 609 were modified or varied by, in the appropriate position in section 609, inserting:

           "ETFs
           (10A) A member of an ETF who is an authorised participant in relation to the ETF does not have a relevant interest in securities that form part of ETF property merely because the ETF has an acquisition and withdrawal facility, provided that the current PDS requirement in subsection (10B) is satisfied.
           (10B) The current PDS requirement is satisfied in relation to an ETF if the current PDS contains a statement to the effect that at the time the investment strategy for the ETF disclosed in the current PDS was first published in a Product Disclosure Statement for interests or shares (as applicable) in the ETF, there were reasonable grounds to believe that implementation of the investment strategy would not be likely to lead to ETF property including securities in a class of securities that:
              (a) would represent more than 10% by value of ETF property; and
              (b) were, or would result in the responsible entity or CCIV having a relevant interest in, securities in:
                  (i) a listed company; or
                  (ii) an unlisted company, other than a CCIV, with more than 50 members; or
Note: The prohibitions in subsections 606(1) and (2) only apply to the acquisition of a relevant interest in an issued voting share in a CCIV if the CCIV is a listed company: see section 1240A.
                  (iii) a listed body that is formed or incorporated in Australia; or
                  (iv) a listed scheme.
Note: The responsible entity or CCIV may have a relevant interest in securities that do not form part of ETF property because of paragraph 608(3)(b).
           (10C) If subsection (10A) applies in relation to a member and the member makes a withdrawal