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 7.11.17 TRANSFER DOCUMENT THAT PURPORTS TO BEAR STAMP OF TRANSFEROR'S BROKER

7.11.17(1) [ Application]

This regulation applies if a transfer document relating to Division 3 assets or Division 3 rights:

(a) is a duly completed Part 1; and

(b) bears a stamp that purports to be a stamp of the transferor's broker (the designated broker ).

7.11.17(2) [ Warranties: associate of designated broker]

Each associate (if any) of the designated broker is taken to have warranted:

(a) that the statements in the transfer document that purport to be certified by the designated broker are accurate; and

(b) that the transferor is:

(i) the registered holder of, or entitled to be registered as the holder of, the Division 3 assets; or

(ii) is entitled to the Division 3 rights;

and is legally entitled or authorised to sell or dispose of the Division 3 assets or Division 3 rights.

7.11.17(3) [ Warranties: designated broker not broker's agent]

If the designated broker is not a broker's agent, the designated broker is taken to have warranted:

(a) that the statements in the transfer document that purport to be certified by the designated broker are accurate; and

(b) that the transferor is:

(i) the registered holder of, or entitled to be registered as the holder of, the Division 3 assets; or

(ii) is entitled to the Division 3 rights;

and is legally entitled or authorised to sell or dispose of the Division 3 assets or Division 3 rights.

7.11.17(4) [ Additional arrangements]

The following additional arrangements apply if the transfer document has been duly completed in accordance with Part 1 of Form 1 or Form 5:

(a) if, when the transfer document was stamped with the stamp mentioned in paragraph (1)(b), the designated broker had authority to sell the Division 3 assets or Division 3 rights, on the transferor's behalf, to:

(i) the transferee; or

(ii) particular persons who include, or particular classes of persons at least one of which includes, the transferee; or

(iii) any person at all;

the designated broker is taken to have been authorised to execute, and to have executed, the transfer document on the transferor's behalf;

(b) each associate (if any) of the designated broker is liable to indemnify:

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

(ii) the transferor; and

(iii) the transferee; and

(iv) the transferee's broker;

against any loss or damage arising if:

(v) the stamp mentioned in paragraph (1)(b) is not the designated broker's stamp; or

(vi) apart from paragraph (a), the designated broker was not authorised to execute the transfer document on the transferor's behalf;

(c) if the designated broker is not a broker's agent, the designated broker is liable to indemnify:

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

(ii) the transferor; and

(iii) the transferee; and

(iv) the transferee's broker;

against any loss or damage arising if:

(v) the stamp mentioned in paragraph (1)(b) is not the designated broker's stamp; or

(vi) apart from paragraph (a), the designated broker was not authorised to execute the transfer document on the transferor's behalf.

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