7. Conditions of exemption7. Conditions of exemption

7. Conditions of exemption

The exemption from compliance with the modifiable provisions identified in section 6 of this instrument is subject to the following conditions specified under subsection 330(2) of the Act:

(a) the person holds a direct control interest in the RSE licensee at a particular time of 15% or less; and

(b) the person holds a stake in the RSE licensee at a particular time of more than 15% only as a result of the aggregation of:

(i) the direct control interest in the RSE licensee that the person holds at that time; and

(ii) the direct control interests in the RSE licensee held at that time by associates of the person; and

(c) the associates of the person referred to in paragraph (b)(ii) are associates only by operation of clause 4(1)(e) of Schedule 1 of the FSS Act and are a director of the RSE licensee; and

(d) the person acquires the controlling stake in the RSE licensee on or after the date of commencement of this instrument; and

(e) the person is not entitled to any financial benefit directly arising from the person’s shareholding in the RSE licensee; and

(f) the person must as soon as practicable after ceasing to be a director of the RSE licensee transfer or forfeit the person’s shareholding in the RSE licensee subject to the terms of the RSE licensee’s constituent document.