Commonwealth Consolidated Acts

FINANCIAL SERVICES REFORM ACT 2001 - SCHEDULE 2

Corporations Act 2001

1  Section 9 (paragraph (a) of the definition of continuous disclosure notice )

Repeal the paragraph, substitute:

                     (a)  a document used to notify a market operator of information relating to a body under provisions of the market’s listing rules referred to in subsection 674(1); or

2  Section 9 (paragraph (b) of the definition of continuous disclosure notice )

Omit “1001B”, substitute “675”.

3  Section 9

Insert:

"listing market" , in relation to a listed disclosing entity, has the meaning given by subsection 111AE(1) or (1A).

4  Section 9 (definition of listing rules )

Repeal the definition, substitute:

"listing rules" of a financial market, when used in a provision outside Chapter 7, has the same meaning as it has in Chapter 7.

5  Section 9

Insert:

"managed investment product" , when used in a provision outside Chapter 7, has the same meaning as it has in Chapter 7.

6  Section 9

Insert:

"Product Disclosure Statement" , when used in a provision outside Chapter 7, has the same meaning as it has in Chapter 7.

7  Section 9

Insert:

"Supplementary Product Disclosure Statement" , when used in a provision outside Chapter 7, has the same meaning as it has in Chapter 7.

8  Subsection 92(3)

Omit “6 to 6D (inclusive)”, substitute “ 6 to 6CA (inclusive) and Part 1.2A”.

9  Paragraph 111AD(1)(a)

After “111AF,”, insert “111AFA,”.

10  Subsection 111AE(1)

Repeal the subsection, substitute:

             (1)  If:

                     (a)  a body corporate is, with its agreement, consent or acquiescence, included in the official list of a prescribed financial market; and

                     (b)  the market’s listing rules (according to their terms) apply to the body in relation to a class (which may be some or all) of securities issued by the body;

securities issued by the body in that class are ED securities , and that market is a listing market in relation to that body.

          (1A)  If:

                     (a)  an undertaking to which interests in a registered scheme relates is, with the agreement, consent or acquiescence of the responsible entity, included in the official list of a prescribed financial market; and

                     (b)  the market’s listing rules (according to their terms) apply to the undertaking in relation to a class (which may be some or all) of managed investment products that relate to the scheme;

managed investment products in that class that relate to the scheme are ED securities , and that market is a listing market in relation to the undertaking.

Note:       The heading to section 111AE is replaced by the heading “ Securities of body or undertaking that is included in a licensed market’s official list ”.

11  Subsection 111AE(2)

Omit “Subsection (1) does”, substitute “Subsections (1) and (1A) do”.

12  Paragraph 111AE(2)(b)

Repeal the paragraph, substitute:

                     (b)  the only securities issued by the body that would otherwise be ED securities because of subsection (1) or (1A) are debentures; and”.

13  Subsection 111AE(3)

Omit “Subsection (1) does”, substitute “Subsections (1) and (1A) do”.

14  Section 111AF

After “debentures”, insert “or managed investment products”.

Note        The heading to section 111AF is altered by inserting “ (except debentures and managed investment products) ” after “ Securities ”.

15  After section 111AF

Insert:

111AFA   Managed investment products held by 100 or more persons

                   Managed investment products in a class of managed investment products issued by a body are ED securities if 100 or more people hold managed investment products in that class as a result of offers that gave rise to obligations to give Product Disclosure Statements (whether or not all in the same terms) under Chapter 7.

16  Subsection 111AH(1)

After “111AF”, insert “, 111AFA”.

Note:       The heading to section 111AH is altered by inserting “ , 111AFA ” after “ 111AF ”.

17  Subsection 111AH(2)

After “111AF”, insert “, 111AFA”.

18  Subsection 111AP(1)

Omit “1001A and 1001B”, substitute “674 and 675”.

19  Subsections 111AP(2) and (3)

Repeal the subsections.

20  After section 111AQ

Insert in Division 3 of Part 1.2A:

111AQA   Product Disclosure Statement relief

                   Obligations that apply to disclosing entities can be taken into account in deciding what information should be included in a Product Disclosure Statement—see paragraph 1013F(2)(d).

21  Paragraph 111AR(1)(d)

Omit “1001A and 1001B”, substitute “674 and 675”.

22  Section 256E (table item 4)

Repeal the item, substitute:

23  Section 257J (table item 8)

Repeal the item, substitute:

24  After Chapter 6C

Insert: