ASIC Class Order [CO 02/0237]

ASIC Class Order [CO 02/237]

About this compilation

Compilation No. 3

This is a compilation of ASIC Class Order [CO 02/237] as in force on 20 December 2016. It includes any commenced amendment affecting the legislative instrument to that date.

This compilation was prepared by the Australian Securities and Investments Commission.

The notes at the end of this compilation (the endnotes) include information

about amending instruments and the amendment history of each amended provision.

Australian Securities and Investments Commission
Corporations Act 2001— Paragraphs 601QA(1)(a), 741(1)(a), 911A(2)(l) and 1020F(1)(a) — Revocation and Exemption

Under paragraphs 601QA(1)(a) and 741(1)(a) of the Corporations Act 2001 (“the Act”) the Australian Securities and Investments Commission (“ASIC”) hereby revokes Class Order [01/179].

First Exemption — Rental pools operated by operators of time-sharing schemes that are exempt from the managed investment provisions

1 Under paragraphs 601QA(1)(a), 911A(2)(l) and 1020F(1)(a) of the Act ASIC hereby exempts each person (“Operator”) that operates a rental pool from:

(a) section 601ED and Division 3 of Part 7.9 of the Act in relation to the operation of that rental pool if the Operator is exempted from section 601ED of the Act in operating a time-sharing scheme to which the rental pool relates by another ASIC instrument (whether dated before or after the date of this instrument) which specifically names the Operator (the “Relevant Exemption Instrument”); and

(b) the requirement to hold an Australian financial services licence for the provision of financial services in relation to interests in the rental pool, for as long as and on condition that:

(c) the Operator complies with each condition set out in the Relevant Exemption Instrument;

(d) the Operator maintains an account designated as a trust account into which all gross income of the rental pool is paid to be held on trust for members of the rental pool and money is disbursed from that account only in accordance with the terms of the contractual agreement which governs each member’s participation in the rental pool;

(e) the Operator ensures that the trust account is audited at least once every 6 months by a registered company auditor; 

(f) the Operator ensures that a copy of the auditor’s report is given to all members of the rental pool within 3 months after each audit;

(g) the Operator complies with section 1017D of the Act as if an interest in the scheme were a managed investment product; and

(h) the Operator keeps for at least 7 years at the address of the registered office or the principal place of business in this jurisdiction of the Operator a copy of each agreement referred to in subparagraph 1(d) and provides ASIC with a copy of any such agreement on request.

2 Under paragraph 911A(2)(l) of the Act ASIC hereby exempts all other persons from the requirement to hold an Australian financial services licence for the provision of financial services in relation to interests in a rental pool of the kind referred to in paragraph 1 which appears to be operated on a basis which complies with the conditions in paragraph 1 except where the person is aware, or ought reasonably to be aware, that those requirements have not been met.

Second Exemption — Disclosure relief for rental pools forming part of registered time-sharing schemes

Under paragraph 1020F(1)(a) of the Act ASIC hereby exempts each person (“Operator”) that operates a rental pool that is related to a registered time-sharing scheme for which there is no current Product Disclosure Statement from and Division 3 of Part 7.9 of the Act (except section 1017D) in the case of an offer of interests in and the operation of that rental pool for as long as and on condition that:

(a) the Operator maintains an account designated as a trust account into which all gross income of the rental pool is paid to be held on trust for members of the rental pool and money is disbursed from that account only in accordance with the terms of the contractual agreement which governs each member’s participation in the rental pool;

(b) the Operator ensures that the trust account is audited at least once every 6 months by a registered company auditor;

(c) the Operator ensures that a copy of the auditor’s report is given to all members of the rental pool within 3 months after each audit; and

(d) the Operator keeps for at least 7 years at the address of the registered office or the principal place of business in this jurisdiction of the Operator a copy of each agreement referred to in paragraph (a) of this Second Exemption.

Note: In this instrument, “this jurisdiction” means Australia: Act, ss 5 and 9 (definition of “this jurisdiction”).

Interpretation

In this instrument “rental pool” means any arrangement conducted by the Operator (including by an agent engaged by the Operator) whereby owners of interests in a time-sharing scheme authorise the Operator or its agent to manage and rent to third parties the rights of use of owners under the scheme and to pool the rental income received for pro-rata distribution to each owner.

Commencement

This instrument takes effect on the commencement of Schedule 1 to the Financial Services Reform Act 2001.

Notes to ASIC Class Order [CO 02/237]

Note 1

ASIC Class Order [CO 02/237] (in force under s601QA(1)(a), 741(1)(a), 911A(2)(l) and 1020F(1)(a) of the Corporations Act 2001) as shown in this compilation comprises that Class Order amended as indicated in the tables below.

Table of Instruments

Table of Amendments

ad. = added or inserted     am. = amended     rep. = repealed     rs. = repealed and substituted