CORPORATIONS REGULATIONS 2001 - REG 10.2.215 Winding up of fidelity funds if market ceases to operate

CORPORATIONS REGULATIONS 2001 - REG 10.2.215

  (1)   For subsection   1416(1) of the Act, section   886B of the Act applies in relation to a fidelity fund kept by the operator of a financial market that, at a time in the transition period for the market, ceases to operate (otherwise than because of a merger).

  (2)   For paragraph   886B(c) of the Act, subsection   (3) applies if, at a time during the transition period for a financial market on which derivatives are traded, a person (the first person ) ceases to operate the market (other than because of a merger), and another person (the second person ) that is a related body corporate operates a financial market:

  (a)   in relation to which, or a segment of which, there are required, after the end of the transition period, to be compensation arrangements approved in accordance with Division   3 of Part   7.5 of the Act; and

  (b)   on which derivatives are also traded.

  (3)   The assets of the fidelity fund held by the first person for the market it had operated may be:

  (a)   transferred to the fidelity fund held by the second person for the market, or segment of the market, that it operates; or

  (b)   held as, or as part of, the fidelity fund held for the market, or segment of the market, operated by the second person.