Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS

[ CCH Note: Pursuant to the Corporations Amendment Regulations 2001 (No 4) (SR 2001 No 319) effective 11 March 2002, Chapter 7 (Securities) comprising reg 7.1.01 - 7.15.01 and Chapter 8 (The futures industry) comprising reg 8.1.01 - 8.7.03 are replaced by a new Chapter 7 (Financial services and markets) comprising reg 7.1.01 - 7.12.01. As the subject matter of the new Chapter 7 relates to the new financial services reform regime, " inserted " has been used in the history notes for each provision, and all references to the former provisions have been removed.]

PART 7.11 - TITLE AND TRANSFER

Division 3 - Transfer of Division 3 securities effected otherwise than through a prescribed CS facility

REGULATION 7.11.19 INDEMNITIES BY MARKET LICENSEE AND BROKER IF TRANSFER DOCUMENT PURPORTS TO BEAR THEIR STAMPS

7.11.19(1) [ Application]

This regulation applies if:

(a) a transfer document (the first document ) relating to Division 3 assets or Division 3 rights:

(i) has been duly completed in accordance with Part 1 of Form 1 or Form 5; and

(ii) bears a stamp that purports to be the stamp of the transferor's broker; and

(b) another transfer document:

(i) relates to any or all of the Division 3 assets or Division 3 rights; and

(ii) has been duly completed in accordance with Part 1 of Form 3 or Form 7; and

(iii) bears a stamp that purports to be the stamp of a market licensee.

7.11.19(2) [ Market licensee]

The market licensee is liable to indemnify:

(a) the issuer in relation to the Division 3 assets or Division 3 rights; and

(b) the transferor in relation to the other document; and

(c) the transferee in relation to the other document; and

(d) the broker of the transferee in relation to the other document;

against any loss or damage arising if:

(e) the stamp mentioned in subparagraph (1)(a)(ii) is not the stamp of the transferor's broker; or

(f) apart from paragraph 7.11.17(4) (a), the designated broker was not authorised to execute the first document on behalf of the transferor in relation to the first document.

7.11.19(3) [ Associate of transferor's broker]

Each associate (if any) of the transferor's broker is liable to indemnify the market licensee against any loss or damage arising as mentioned in subregulation (2).

7.11.19(4) [ Transferor's broker who is not broker's agent]

If the transferor's broker is not a broker's agent, the transferor's broker is liable to indemnify the market licensee against any loss or damage arising as mentioned in subregulation (2).

7.11.19(5) [ Operation]

Nothing in this regulation limits the operation of anything in regulation 7.11.17 or 7.11.18 or of anything else in this regulation.

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