Australian Securities and Investments Commission Corporations (Margin Lending Relief for Exchange-Traded Instalment Warrants) Instrument 2021/194 (Cth)

ASIC Corporations (Margin Lending Relief for Exchange-Traded Instalment Warrants) Instrument 2021/194

I, Anthony Graham, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.

Date    24 March 2021

Anthony Graham

Contents

Part 1—Preliminary

1    Name of legislative instrument

2    Commencement

3    Authority

4    Definitions

Part 2—Declaration

5    Terms of the Declaration

Part 3—Repeal

6    Repeal

Part 1—Preliminary

1        Name of legislative instrument

This is the ASIC Corporations (Margin Lending Relief for Exchange-Traded Instalment Warrants) Instrument 2021/194.

2        Commencement

This instrument commences on the later of:

(a)     the day after it is registered on the Federal Register of Legislation; and

(b)     1 April 2021.

Note:    The register may be accessed at Authority

This instrument is made under subsection 761EA(9) of the Corporations Act 2001 (the Act).

4        Definitions

In this instrument:

Australian domestic market licensee means a person who is a market licensee because of subsection 795B(1) or 1413(2) of the Act.

instalment warrant means a financial product that is a security or an interest in a managed investment product under the terms of which:

(a)     credit is provided by the issuer to the person (the client) acquiring the financial product; and

(b)     the credit is applied to acquire one or more marketable securities (the underlying asset), which may include applying the credit to pay for expenses incurred in connection with providing the credit or acquiring the underlying asset; and

(c)     the underlying asset is held on trust so that the client acquires a beneficial interest in the underlying asset; and

(d)     the client has a right to acquire legal ownership of the underlying asset by making one or more payments after acquiring the beneficial interest; and

(e)     the rights of the issuer, or any other person, against the client are limited to rights relating to the underlying asset.

Part 2—Declaration

5     Terms of the Declaration

ASIC declares that a facility that is an instalment warrant:

(a)     that is in a class of financial products that are admitted to quotation on a licensed market operated by an Australian domestic market licensee; and

(b)     that is issued by a financial services licensee; and

(c)     that is a standard margin lending facility;

is not a margin lending facility.

Note:    This declaration does not have the effect that an instalment warrant covered by this declaration is not a financial product.

Part 3—Repeal

6     Repeal

This instrument is repealed on 1 April 2026.