Corporations Amendment Regulations 2002 (No. 2) (16 of 2002)

Schedule 1   Amendments commencing at 12.01 am (in the Australian Capital Territory) on 11 March 2002

[76]   After regulation 7.9.07

insert

Division 2A Product Disclosure Statement for warrants

7.9.07A Warrants

(1) This regulation applies in relation to warrants.

(2) For paragraph 1020G (2) (a) of the Act, section 1010A of the Act is modified by adding after subsection 1010A (1):

'(1A) Despite subsection (1), this Part applies in relation to a financial product to which regulation 7.9.07A of the Corporations Regulations 2001 applies.'.

(3) For paragraph 761E (7) (a) of the Act, if the financial product is entered into, or acquired, on a financial market through an arrangement made by a financial services licensee acting on behalf of another person:

(a) the financial services licensee is not taken to be the issuer of the financial product; and

(b) the warrant issuer is taken to be the issuer of the financial product.

(4) For paragraph 761E (7) (a) of the Act, if the financial product is entered into, or acquired, on a financial market through an arrangement made by an authorised representative of a financial services licensee acting on behalf of another person (not being the licensee):

(a) the financial services licensee is not taken to be the issuer of the financial product; and

(b) the warrant issuer is taken to be the issuer of the financial product.

(5) For paragraph 1013F (2) (f) of the Act:

(a) information that is, or is required to be, disclosed to the market in relation to the underlying thing from which a warrant derives its value, including information published by a market operator in relation to financial products (including warrants and types of warrants) in the form of market data or educational material which is generally made available to the public by the market operator is a matter that may be taken into account for section 1013F of the Act; and

(b) other information that a market operator is required to disclose to the market, in accordance with the Act, including:

(i) information that was required to be disclosed to the market operator; and

(ii) information that the operator was required to disclose in order to meet its obligations under the Act;

is a matter that may be taken into account for section 1013F of the Act; and

(c) information that is generally made available to the public by a market operator in relation to financial products, including information published about a warrant that is entered into or acquired on a financial market in the form of market data or educational material, is a matter that may be taken into account for section 1013F of the Act.

(6) For paragraph 1017B (3) (c) of the Act, a way in which the warrant issuer may notify a holder of a matter to which that paragraph applies is by giving the relevant information to the operator of the financial market on which the warrant was entered into or acquired.

(7) For paragraph 1020G (1) (c) of the Act, Part 7.9 of the Act applies in relation to a warrant as if the words 'but not more than 3 months after, the change or event occurs' in item 1 of the table in subsection 1017B (5) of the Act were omitted.

(8) In this regulation:

warrant issuer , in relation to a warrant, means the person who:

(a) determines the terms of the warrant, including the rights and conditions of the warrant; and

(b) is responsible for obligations owed under the terms of the warrant.

Division 2B Product Disclosure Statement for market-traded derivatives

7.9.07B Product Disclosure Statements for certain market-traded derivatives

(1) For paragraph 1020G (1) (c) of the Act, subregulations (2) and (3) apply if:

(a) the standard terms and conditions relating to a type of derivative are:

(i) specified by the market operator; and

(ii) made generally available to the public; and

(b) the financial services licensee in relation to the derivative is taken to be the issuer of the derivative under subsection 761E (6) of the Act; and

(c) a retail client for the derivative has agreed to the terms and conditions as applicable to the financial product or products that are the subject of the transaction.

(2) Subsection 1013D (1) of the Act is modified in its application to the derivative as if the information required by paragraphs 1013D (1) (b), (c), (d) and (f) were required to be included as general information about the type of derivative, including, for example:

(a) general information about exercise prices for the type of derivative; and

(b) general information about expiry dates for the type of derivative; and

(c) general information about exercise styles for the type of derivative.

(3) For paragraph 1013F (2) (f) of the Act:

(a) information that is, or is required to be, disclosed to the market in relation to the underlying thing from which a derivative derives its value, including information published by a market operator in relation to financial products (including derivatives and types of derivatives) in the form of market data or educational material which is generally made available to the public by the market operator is a matter that may be taken into account for section 1013F of the Act; and

(b) other information that a market operator is required to disclose to the market, in accordance with the Act, including:

(i) information that was required to be disclosed to the market operator; and

(ii) information that the operator was required to disclose in order to meet its obligations under the Act;

is a matter that may be taken into account for section 1013F of the Act; and

(c) information that is generally made available to the public by a market operator in relation to financial products, including information published about derivatives and types of derivatives in the form of market data or educational material, is a matter that may be taken into account for section 1013F of the Act.

7.9.07C Remedies for Product Disclosure Statements for certain market-traded derivatives

For paragraph 1016F (7) (a) of the Act, financial products that are derivatives are excluded from section 1016F if the rules of a licensed market or a licensed CS facility permit the closing out of the derivatives by the matching up of the arrangement with another arrangement of the same kind under which a person has assumed an offsetting position.