“1019BA Cooling-off for IDPS-like scheme“1019BA Cooling-off for IDPS-like schemes

“1019BA Cooling-off for IDPS-like schemes

(1) The responsible entity of an IDPS-like scheme must: (a) take all reasonable steps to comply with a request made during the cooling-off period by a member of the scheme to: (i) realise an accessible financial product that has been acquired under a direction given by the member in relation to the IDPS interest acquired by the member; or (ii) return any moneys held for the member in relation to the IDPS interest acquired; unless the responsible entity reasonably considers that it would not be fair to all members; and (b) pay to the member upon a realisation of an accessible financial product under subparagraph (1)(a)(i) the amount paid by the member in connection with the acquisition, including any fees payable to the responsible entity in connection with the acquisition but excluding any moneys returned under subparagraph (1)(a)(ii) (the member’s investment amount) less: (i) the amount, if any, by which the member’s investment amount (net of any fees payable to the responsible entity) exceeds the amount received upon a realisation of the accessible financial product under subparagraph (1)(a)(i) (net of any fees payable to the responsible entity); and (ii) any amount that would be permitted by subregulation 7.9.67(7) of the Corporations Regulations 2001 to be deducted if it applied to the realisation of the accessible financial product under subsection (1) as being an exercise by the member of a right to return the accessible financial product; and (c) inform members of the requirements imposed on the responsible entity under paragraph (a) and (b) in any confirmation of a transaction involving an interest in the scheme and in any Product Disclosure Statement of the scheme. (2) In this section: accessible financial product has the same meaning as in subsection 1013DAB(19); and cooling-off period means the period of 14 days starting on the earlier of: (a) the time when the confirmation requirement (if applicable) for the IDPS interest is complied with; or (b) the end of the 5th day after the day on which the IDPS interest was issued or sold to the member; and IDPS interest means an interest in an IDPS-like scheme; and IDPS-like scheme has the same meaning as in subsection 1013DAB(19).”.

9 Withdrawals

Chapter 5C of the Act applies in relation to a responsible entity of an IDPS-like scheme as if the provisions of that Chapter were varied or modified as follows:

(a) omit subsection 601GA(4), substitute:

“(4) If members are to have a right to withdraw from the scheme, the scheme’s constitution must: (a) specify the right; and (b) set out how a withdrawal request will be dealt with where that request relates to an investment which is subject to a minimum holding requirement or the realisation of which might otherwise adversely affect members other than the requesting member. The right to withdraw, and any provisions in the constitution setting out procedures for making and dealing with withdrawal requests, must be fair to all members.”; and