Section 1222K — Corporations Act 2001: Retail CCIV test

(1) A CCIV satisfies the retail CCIV test in this section if any of the following apply: (a) at least one member of the CCIV is covered by subsection (2) (about protected retail clients); (b) at least one member of the CCIV is covered by subsection (3) (about protected clients under custodial arrangements); (c) at least one member of the CCIV is covered by subsection (4) (about protected members of passport funds). When a person is a protected retail client of a CCIV (2) For the purposes of paragraph (1)(a), a person is covered by this subsection in relation to a CCIV if all of the following apply: (a) the person acquires a security (within the meaning of Chapter 7) issued by the CCIV, by way of: (i) an issue of the security to the person (rather than a transfer of the security to the person); or (ii) a transfer of the security to the person in circumstances described in subsection 1012C(5), (6) or (8) (secondary sales that require a Product Disclosure Statement); (b) the person acquired the security as a retail client for the purposes of Chapter 7; (c) the person is not associated (within the meaning of subsection 1241S(3)) with the CCIV; (d) if the person acquired the security by way of an issue—the issue was not made in a situation, or pursuant to an offer made in a situation, to which section 1012E (about small scale offerings) applies. Note: Section 1012E applies to financial products that are securities in a CCIV: see subsection 1241S(6). When a person is a protected client under a custodial arrangement (3) For the purposes of paragraph (1)(b), a person is covered by this subsection in relation to a CCIV if all of the following apply: (a) an acquisition of a security (within the meaning of Chapter 7) in the CCIV occurs pursuant to an instruction given by the person under a custodial arrangement (within the meaning of section 1012IA); (b) if there were an equivalent direct acquisition (within the meaning of subsection 1012IA(2)) by the person, the person would acquire the security as a retail client for the purposes of Chapter 7; (c) the person is not associated (within the meaning of subsection 1241S(3)) with the CCIV. When a person is a protected passport fund member (4) For the purposes of paragraph (1)(c), a person is covered by this subsection in relation to a CCIV if: (a) a sub-fund of the CCIV is an Australian passport fund; and (b) the person became a member of the sub-fund (whether in this jurisdiction or any host economy for the fund): (i) on the expectation that the sub-fund would become an Australian passport fund; or (ii) after the sub-fund became an Australian passport fund; and (c) the person: (i) is not, and has not at any time been, the corporate director of the CCIV; and (ii) is not a related party of an entity that is, or has at any time been, the corporate director of the CCIV. Note: See section 1216B for the circumstances in which a person becomes a member of a fund on the expectation that it would become an Australian passport fund. Regulations (5) The regulations may do either or both of the following: (a) prescribe additional circumstances in which a person is covered by subsection (2), (3) or (4) in relation to a CCIV; (b) provide that a particular class of person is not covered by subsection (2), (3) or (4) in relation to a CCIV.