Document ID: chunk:federal_register_of_legislation:F2024C01108:front:0:p53
Version: federal_register_of_legislation:F2024C01108
Segment Type: other
Provision Reference: 
Character Range: 140905–143718

is precluded from giving the Client advice will not be regarded as giving advice.

Part 3.7 Dealing in Cash Market Products

3.7.1 Disclosure of shortfall—Must disclose to Client

A Market Participant, an Employee or a director of a Market Participant or a company which is a partner of a Market Participant who or which will be required to acquire Cash Market Products as underwriter or sub-underwriter must not offer such Cash Market Products to clients unless:

 1.         they first inform the clients concerned of the closing date of the issue or offering of the Cash Market Products and the reasons for the acquisition; or

(b)       the offer to the client is made more than 90 days from the closing date.

3.7.2 Expenses—Reimbursement for out-of-pocket expenses

Where a Trading Participant seeks out-of-pocket expenses involved in the purchase or sale of Cash Market Products, the Trading Participant must not cover that charge by an increase or reduction in the price of the Cash Market Products.

3.7.3 Nominee holdings—Restrictions on when an Equity Security can be recorded in the name of a nominee company

(1) A Market Participant must not cause the ownership of an Equity Security of which it is not the beneficial owner to be registered in its own name or in the name of its partners, directors or Employees.

(2) A Market Participant may only cause the ownership of an Equity Security referred to in subrule (1) to be registered in the name of a nominee company which:

 1.         unless otherwise agreed by ASIC, is incorporated in Australia with a name which contains the word "nominee";

(b)       has a constitution which precludes the nominee company from owning any Equity Security or other property except cash beneficially; and
(c)        is a directly legally and beneficially wholly owned subsidiary of the Market Participant which is operated by the Market Participant unless the Market Participant is a Clearing Participant who appoints a Settlement Participant as its agent in accordance with the Clearing Rules.

Part 3.8 Best execution obligation

3.8.1AA Application of Part

This Part applies to:
(a)        Participants of a Market on or through which offers to acquire or dispose of Equity Market Products are made or accepted;
(b)       Participants of a CGS Market;
(c)        Orders (including Client Orders) in relation to Equity Market Products and CGS Depository Interests.

3.8.1 Best execution obligation—Best outcome

(1) Subject to subrules (3) and (4), when handling and executing an Order for a client a Market Participant must take reasonable steps to obtain the best outcome for that client.

(2) For the purposes of subrule (1), when handling and executing an Order for:
(a)        a retail client who has not given an instruction under subrule (3), the