Turn the raw legal text into a practical explanation grounded in ASIC Corporations (Division 3 Securities and Division 4 Financial Products) Instrument 2026/32.
This instrument is made under subsection 1075A(1) of the Corporations Act 2001.
4 Schedules
Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
5 Simplified outline of this instrument
This instrument:<br>(a) declares certain classes of financial products for the purposes of regulations that regulate and facilitates transfers of financial products through ASX Settlement Pty Limited; and<br>(b) disapplies the application to certain warrants of certain subregulations that deal with circumstances under which such warrants would be taken to have ceased quotation on a financial market; and<br>(c) clarifies the operation of the regulations which deal with the effect on a transferee of a transfer through ASX Settlement Pty Limited of financial products that are rights; and<br>(d) expands the operation of the transfer provisions in Division 3 and 4 of Part 7.11 of the Act to cover interests in registered schemes that are quoted on the financial market operated by Cboe Australia Pty Ltd.
6 Definitions
In this instrument:
Act means the Corporations Act 2001.
AQUA Quote Display Board has the meaning given by the operating rules of ASX.
ASX means ASX Limited.
Cboe means Cboe Australia Pty Ltd.
CDN means CHESS Depositary Nominees Pty Limited.
depositary interests means units of beneficial ownership in financial products that are securities issued by a foreign company or foreign scheme products where:
(a) the securities or foreign scheme products are held by CDN; and
(b) the operating rules of ASX Settlement Pty Limited apply to:
(i) the holding of the securities or foreign scheme products by CDN; and
(ii) the recording and transfer of the units of beneficial ownership.
Division 4 financial product has the meaning given by subregulation 7.11.03(1) of the Regulations.
eligible products means each of the following:
(a) warrants that are:
(i) able to be traded on the financial market operated by ASX or Cboe; or
(ii) admitted to the AQUA Quote Display Board;
(b) interests in a managed investment scheme that is not required to be registered under Chapter 5C of the Act because of an instrument made under section 601QA of the Act and that are:
(i) able to be traded on the financial market operated by ASX or Cboe; or
(ii) admitted to the AQUA Quote Display Board;
(c) shares in, or debentures of, a foreign company that are quoted on the financial market operated by ASX or Cboe;
(d) shares and debentures quoted on the financial market operated by ASX that are issued by a body referred to in section 1073C of the Act;
(e) transferable custody receipts;
(f) depository interests.
foreign quoted shares, in relation to transferable custody receipts, means shares in a foreign company that is listed on the New York Stock Exchange, NASDAQ Global Market or NASDAQ Global Select Market, where the shares are in a class of shares that are able to be traded on at least one of those financial markets.
foreign scheme product means a financial product that:
(a) is referred to in paragraph 764A(1)(ba) of the Act; and
(b) relates to a managed investment scheme which is:
(i) operated by a foreign company; and
(ii) included in the official list of the financial market operated by ASX.
Regulations means the Corporations Regulations 2001.
transferable custody receipts means units of beneficial ownership in foreign quoted shares where the units:
(a) arise from a custodial and sub-custodial arrangement under which:
(i) a custodian holds, directly or indirectly, the foreign quoted shares on behalf of, or in trust for, a financial services licensee that holds an Australian financial services licence that covers the provision of a custodial or depository service; and
(ii) the financial services licensee holds its equitable rights or interests in the shares arising from the custodial arrangement mentioned in subparagraph (i) on behalf of, or in trust for, a person; and
(b) are issued without the involvement of the issuer of the foreign quoted shares; and
(c) are able to be traded on the financial market operated by Cboe.
warrant has the meaning given by subregulation 1.0.02(1) of the Regulations.
Part 2—Declaration
7 Application of Division 4 of Part 7.11 of the Act
Division 4 financial products
(1) Part 7.11 of the Act applies to eligible products as if Division 4 of that Part were modified or varied by, after section 1074A, inserting:
“1074AA Transfers effected through ASX Settlement
(1) The following financial products are financial products the transfer of which will be effected through ASX Settlement Pty Limited under the regulations:
(a) warrants that are:
(i) able to be traded on the financial market operated by ASX Limited or Cboe Australia Pty Ltd; or
(ii) admitted to the AQUA Quote Display Board;
(b) interests in a managed investment scheme that is not required to be registered under Chapter 5C because of an instrument made under section 601QA and that are:
(i) able to be traded on the financial market operated by ASX Limited or Cboe Australia Pty Ltd; or
(ii) admitted to the AQUA Quote Display Board;
(c) shares in, or debentures of, a foreign company that are quoted on the financial market operated by ASX Limited or Cboe Australia Pty Ltd;
(d) shares and debentures quoted on the financial market operated by ASX Limited that are issued by a body referred to in section 1073C;
(e) transferable custody receipts;
(f) depository interests.
(2) In this section:
CDN means CHESS Depositary Nominees Pty Limited.
depositary interests means units of beneficial ownership in financial products that are securities issued by a foreign company or foreign scheme products where:
(a) the securities or foreign scheme products are held by CDN; and
(b) the operating rules of ASX Settlement Pty Limited apply to:
(i) the holding of the securities or foreign scheme products by CDN; and
(ii) the recording and transfer of the units of beneficial ownership.
foreign quoted shares, in relation to transferable custody receipts, means shares in a foreign company that is listed on the New York Stock Exchange, NASDAQ Global Market or NASDAQ Global Select Market, where the shares are in a class of shares that are able to be traded on at least one of those financial markets.
foreign scheme product means a financial product that:
(a) is referred to in paragraph 764A(1)(ba); and
(b) relates to a managed investment scheme which is:
(i) operated by a foreign company; and
(ii) included in the official list of the financial market operated by ASX Limited.
transferable custody receipts means units of beneficial ownership in foreign quoted shares where the units:
(a) arise from a custodial and sub-custodial arrangement under which:
(i) a custodian holds, directly or indirectly, the foreign quoted shares on behalf of, or in trust for, a financial services licensee that holds an Australian financial services licence that covers the provision of a custodial or depository service; and
(ii) the financial services licensee holds its equitable rights or interests in the shares arising from the custodial arrangement mentioned in subparagraph (i) on behalf of, or in trust for, a person; and
(b) are issued without the involvement of the issuer of the foreign quoted shares; and
(c) are able to be traded on the financial market operated by Cboe Australia Pty Ltd.
warrant has the meaning given by subregulation 1.0.02(1) of the regulations.”.
Note 1: Paragraph 7.11.03(1)(b) of the Regulations provides that a financial product is a Division 4 financial product if the financial product is declared by ASIC, under section 1075A of the Act, to be a financial product the transfer of which will be effected through ASTC under the Regulations.
Note 2: ASX Settlement Pty Limited was previously known as ASX Settlement and Transfer Corporation Pty Limited (ASTC).
Transferable custody receipts and warrants
(2) Part 7.11 of the Act applies to:
(a) transferable custody receipts; and
(b) warrants that are able to be traded on the financial market operated by ASX or Cboe; and
(c) warrants that are admitted to the AQUA Quote Display Board;
as if subregulations 7.11.03(4) and (5) of the Regulations were omitted.
Rights
(3) Part 7.11 of the Act applies to Division 4 financial products that are rights (within the meaning of subregulation 7.11.28(4) of the Regulations) as if regulation 7.11.28 of the Regulations were modified or varied as follows:
(a) before subregulation (1) insert:
“(1A) If a proper ASTC transfer of a Division 4 financial product that is a right takes effect at a particular time, the transferee is taken to have agreed at that time to accept the right subject to the terms and conditions on which the transferor held the right immediately before that time, being the terms and conditions that are applicable as between the issuer in relation to, and the holder for the time being of, the right.”;
(b) in subregulation (1) omit “takes effect at a particular time”, substitute “has taken effect, and at that time (the payment time) or at a later time (the payment time) the transferee makes payment to the issuer in relation to the rights of the application money or, in the case of company options, the exercise price”;
(c) in subregulations (1), (2) and (3) omit “at that time” (wherever occurring), substitute “at the payment time”;
(d) in subregulation (4) before the definition of right, insert:
“company option means a right that is an assignable option to acquire by way of issue shares or debentures in a company on payment of an exercise price.”.
8 Application of Part 7.11 of the Act to interests in a registered scheme
Part 7.11 of the Act applies to interests in a registered scheme as if paragraph 7.11.08(b) of the Regulations were modified or varied by omitting “the Australian Stock Exchange Limited” and substituting “ASX Limited or Cboe Australia Pty Ltd”.
Part 4—Repeal
9 Repeal
This instrument is repealed at the start of 1 April 2031.