(c) the ADI uses money so deposited in t
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Commonwealth legislation
This Act has been repealed and is no longer in force. It is retained for historical reference.
This Class Order permits responsible entities of managed investment schemes to use prime brokerage arrangements with Australian ADIs to hold scheme money and assets, enabling banks to provide deposit-taking, lending, securities‑lending and custodial services and to deal with deposits in the ordinary course of banking business. It applies to responsible entities, their schemes and the ADIs they engage, and requires appropriate conflict‑of‑interest protections to be in place.
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Direct links to the current provisions in ASIC Class Order [CO 03/1111].
Where:
(a) the scheme property consists of money; and
(b) the scheme property is held by a person (the “prime broker”) who is an Australian ADI under the terms of a prime brokerage agreement between the prime broker and the responsible entity; and
(c) the responsible entity takes reasonable steps to ensure the prime broker has in place adequate arrangements for the management of conflicts of interest that may arise wholly, or partially, in connection with its holding the scheme property on behalf of the responsible entity.
In this instrument:
“prime brokerage agreement” means a written agreement under which the prime broker makes all of the following services available to the responsible entity:
(a) taking money on deposit and making advances of money in the ordinary course of its banking business as an Australian ADI; and
(b) disposing of securities to the responsible entity subject to an arrangement to reacquire the same or similar securities from the responsible entity at a later time; and
(c) holding scheme property on behalf of the responsible entity; and
“securities” has the meaning given by subsection 92(1) of the Act.
Dated this 16th day of December 2003
Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Where:
(a) the scheme property consists of money; and
(b) the scheme property is held by a person (the “prime broker”) who is an Australian ADI under the terms of a prime brokerage agreement between the prime broker and the responsible entity; and
(c) the responsible entity takes reasonable steps to ensure the prime broker has in place adequate arrangements for the management of conflicts of interest that may arise wholly, or partially, in connection with its holding the scheme property on behalf of the responsible entity.
In this instrument:
“prime brokerage agreement” means a written agreement under which the prime broker makes all of the following services available to the responsible entity:
(a) taking money on deposit and making advances of money in the ordinary course of its banking business as an Australian ADI; and
(b) disposing of securities to the responsible entity subject to an arrangement to reacquire the same or similar securities from the responsible entity at a later time; and
(c) holding scheme property on behalf of the responsible entity; and
“securities” has the meaning given by subsection 92(1) of the Act.
Dated this 16th day of December 2003
Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission