CORPORATIONS REGULATIONS 2001 - REG 7.8.06B Wholesale client property

CORPORATIONS REGULATIONS 2001 - REG 7.8.06B

    For the purposes of paragraph   984A(2)(a) of the Act, property given as mentioned in subsection   984A(1) of the Act is exempt from Division   3 of Part   7.8 of the Act at a time if:

  (a)   at that time the licensee has the client's written agreement to the property being dealt with other than in accordance with that Division; and

Note 1:   It is not necessary for the agreement to mention that Division explicitly.

Note 2:   If the licensee obtains the agreement after the property is given, that Division ceases to apply to the property when the licensee obtains the agreement.

  (b)   either:

  (i)   the financial service referred to in subparagraph   984A(1)(a)(i) of the Act is or relates to a dealing in a derivative; or

  (ii)   the financial product referred to in subparagraph   984A(1)(a)(ii) of the Act is a derivative; and

  (c)   the entry into of the derivative was not or will not be cleared through a clearing and settlement facility; and

  (d)   the financial service or product would have been provided to the client as a wholesale client if:

  (i)   the service or product were provided to the client when the property was given; and

  (ii)   section   761GA of the Act (about sophisticated investors) did not apply.