Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A CCIV satisfies the retail CCIV test in this section if any of the following apply:
(a) at least one member of the CCIV is covered by subsection (2) (about protected retail clients);
(b) at least one member of the CCIV is covered by subsection (3) (about protected clients under custodial arrangements);
(c) at least one member of the CCIV is covered by subsection (4) (about protected members of passport funds).
When a person is a protected retail client of a CCIV
(2) For the purposes of paragraph (1)(a), a person is covered by this subsection in relation to a CCIV if all of the following apply:
(a) the person acquires a security (within the meaning of Chapter 7) issued by the CCIV, by way of:
(i) an issue of the security to the person (rather than a transfer of the security to the person); or
(ii) a transfer of the security to the person in circumstances described in subsection 1012C(5), (6) or (8) (secondary sales that require a Product Disclosure Statement);
(b) the person acquired the security as a retail client for the purposes of Chapter 7;
(c) the person is not associated (within the meaning of subsection 1241S(3)) with the CCIV;
(d) if the person acquired the security by way of an issue--the issue was not made in a situation, or pursuant to an offer made in a situation, to which section 1012E (about small scale offerings) applies.
Note: Section 1012E applies to financial products that are securities in a CCIV: see subsection 1241S(6).
When a person is a protected client under a custodial arrangement
(3) For the purposes of paragraph (1)(b), a person is covered by this subsection in relation to a CCIV if all of the following apply:
(a) an acquisition of a security (within the meaning of Chapter 7) in the CCIV occurs pursuant to an instruction given by the person under a custodial arrangement (within the meaning of section 1012IA);
(b) if there were an equivalent direct acquisition (within the meaning of subsection 1012IA(2)) by the person, the person would acquire the security as a retail client for the purposes of Chapter 7;
(c) the person is not associated (within the meaning of subsection 1241S(3)) with the CCIV.
When a person is a protected passport fund member
(4) For the purposes of paragraph (1)(c), a person is covered by this subsection in relation to a CCIV if:
(a) a sub - fund of the CCIV is an Australian passport fund; and
(b) the person became a member of the sub - fund (whether in this jurisdiction or any host economy for the fund):
(i) on the expectation that the sub - fund would become an Australian passport fund; or
(ii) after the sub - fund became an Australian passport fund; and
(c) the person:
(i) is not, and has not at any time been, the corporate director of the CCIV; and
(ii) is not a related party of an entity that is, or has at any time been, the corporate director of the CCIV.
Note: See section 1216B for the circumstances in which a person becomes a member of a fund on the expectation that it would become an Australian passport fund.
Regulations
(5) The regulations may do either or both of the following:
(a) prescribe additional circumstances in which a person is covered by subsection (2), (3) or (4) in relation to a CCIV;
(b) provide that a particular class of person is not covered by subsection (2), (3) or (4) in relation to a CCIV.