CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.5 - COMPENSATION REGIMES FOR FINANCIAL MARKETS  

Division 3 - Approved compensation arrangements  

Subdivision D - Are compensation arrangements adequate?  

SECTION 885D   CERTAIN LOSSES THAT ARE NOT DIVISION 3 LOSSES  

885D(1)   [ Excluded loss]  

If, in relation to a loss suffered by a person:


(a) the requirements of subsection 885C(1) are satisfied in relation to a participant and 2 or more financial markets; and


(b) the person did not (expressly or impliedly) instruct the participant to use a particular one of those markets; and


(c) it is not reasonably apparent from the usual business practice of the participant which of those markets the participant would use when acting for the person;

the loss is taken not to be a Division 3 loss .

885D(2)   [ Excluded loss - loss connected to financial market]  

If, in relation to a loss suffered by a person:


(a) the requirements of subsection 885C(1) are satisfied in relation to a participant and a financial market; and


(b) the loss is also connected (see section 888A ) with a financial market to which Division 4 applies; and


(c) the person did not (expressly or impliedly) instruct the participant to use a particular one of those markets; and


(d) it is not reasonably apparent from the usual business practice of the participant which of those markets the participant would use when acting for the person;

the loss is taken not to be a Division 3 loss .

885D(3)   [ Excluded loss - transaction effected otherwise that through financial market]  

If, in relation to a loss suffered by a person:


(a) the transaction referred to in paragraph 885C(1) (b) could have been effected otherwise than through a financial market; and


(b) the person did not (expressly or impliedly) instruct the participant concerned to effect the transaction through a financial market; and


(c) it is not reasonably apparent from the usual business practice of the participant that the transaction would be effected through a financial market;

the loss is taken not to be a Division 3 loss .


 

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