ASIC Class Order [CO 02/315]

ASIC Class Order [CO 02/315]

Time-sharing schemes — use of loose-leaf price list

This instrument has effect under s601QA(1)(b) and  741(1)(a) of the Corporations Act 2001.

This compilation was prepared on 2 October 2007 taking into account amendments up to [CO 07/642]. See the table at the end of this class order.

Prepared by the Australian Securities and Investments Commission.

Australian Securities and Investments Commission
Corporations Act 2001 — Paragraphs  601QA(1)(b) and  741(1)(a) — Revocation and Declaration

Under paragraphs 601QA(1)(b) and 741(1)(a) of the Corporations Act 2001 (“the Act”) the Australian Securities and Investments Commission (“ASIC”) hereby revokes Class Order [01/180].

Under paragraph 601QA(1)(b) of the Act ASIC hereby declares that Chapter 5C of the Act applies to each responsible entity of a registered time-sharing scheme (“Operator”) as if paragraph 601GA(1)(a) were modified or varied by:

1 at the beginning of subsection (1), replacing the word “The” with the words:

“Subject to subsection (1A) the”; and

2. after subsection (1) inserting:

“(1A)  The constitution of a registered scheme that is a time-sharing scheme need not make adequate provision for the consideration that is to be paid to acquire an interest in the scheme to the extent that the constitution contains provisions to the effect that interests in the scheme may be issued at a price disclosed in the Product Disclosure Statement for the interests and provided that all of the following requirements are satisfied:

(a) the responsible entity operating the time-sharing scheme (operator) must ensure that any application for an investment in the scheme is voidable at the option of the applicant during a period of:

(i) if the operator is a member of the Australian Timeshare & Holiday Ownership Council Limited ACN 065 260 095 and has not been notified in writing by ASIC that it cannot continue to rely on this subparagraph—not less than 7 days; or

(ii) otherwise—not less than 14 days,

commencing on the date on which the applicant acknowledges receipt of the Product Disclosure Statement (including, where applicable, a loose-leaf price list) and the cooling-off statement referred to in paragraph (c);

 (b) the operator must not issue or sell any interest in the time-sharing scheme, or allow any other person to issue or sell an interest in the scheme, unless the applicant has provided the acknowledgment of receipt referred to in paragraph (a);

(c) each application form relating to an interest in the time-sharing scheme must be accompanied by a separate statement in a form approved by ASIC which:

(i)  describes the effect of the cooling-off period referred to in paragraph (a); and

(ii)  states that a signed application form will be of no effect unless the applicant also signs an acknowledgment of receipt of such a cooling-off statement;

(d) the rights referred to in paragraph (a) must be disclosed prominently in the Product Disclosure Statement and application form which relate to the offer of interests in the time-sharing scheme;

(e) the operator must ensure that the rights referred to in paragraph (a) are provided to the applicant, and the obligations in paragraphs (c) and (d) are complied with, by any other person who:

(i) offers an interest in the time-sharing scheme for issue; or

(ii) offers an interest in the time-sharing scheme for sale where such offer needs disclosure because of section 1012A or 1012C;

(f) the operator must maintain written records relating to the issue by it of all cooling-off statements referred to in paragraph (c),which include:

(i)  each person's signed acknowledgment of receipt of such a statement; and

(ii)  the date of issue of each statement; and

(iii)  the identity of persons to whom each statement has been issued;

(fa)  the operator must keep a written record in relation to a cooling-off statement referred to in paragraph (f) for 7 years after the relevant cooling-off statement is issued;

 (g) the operator must pay any continuing charges and levies payable with respect to any unsold interests in the time-sharing scheme calculated on the same basis that applies to holders of interests in the time-sharing scheme;

(h) the operator must provide to the holders of interests in the time-sharing scheme, at least annually, a statement containing full details of the composition and calculation of the continuing  charges and levies to be imposed on members;

(i) if the operator receives a deposit for an interest in the time-sharing scheme and that interest relates to a property development or a part of a property development that has not been completed to the stage at which it is ready for occupation, the operator must:

(i) immediately refund to the applicant any part of the deposit money in excess of 30% of the price payable for the interest; and

(ii) hold the balance of the deposit money in a trust account on trust for the applicant until the operator complies with subparagraph (iii) below; and

(iii) if the relevant property development or part of the property development has not been completed to the stage at which it is ready for occupation by the date specified in the Product Disclosure Statement — return to the applicant the deposit money and any income earned on the deposit money (less any fees and disbursements properly chargeable against the income).”

Commencement

This instrument takes effect on the commencement of Schedule 1 to the Financial Services Reform Act 2001 (the “Commencement Date”).

Notes to ASIC Class Order [CO 02/315]

Note 1

ASIC Class Order [CO 02/315] (in force under s601QA(1)(b) and 741(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