Australian Securities and Investments Commission
Corporations Act 2001 — Paragraphs 601QA(1)(b) and 741(1)(a) —  Variation
 
Enabling legislation
 
1.       The Australian Securities and Investments Commission (ASIC) makes the variations set out in this instrument under paragraphs 601QA(1)(b) and 741(1)(a) of the Corporations Act 2001.
 
Title
 
2.         This instrument is ASIC Class Order [CO 07/88].
 
Commencement
           
3.         This instrument commences on the later of:
 
(a)        1 October 2007; and
 
(b)        the date it is registered under the Legislative Instruments Act 2003.
 
Note:       An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register). The FRLI may be accessed at http://www.frli.gov.au/.
 
 
 
Variation
 
4.         Class Order [CO 02/315] is varied by:
 
(a)        in the heading:
 
(i)         omitting “601QA(1)(a)” and substituting “601QA(1)(b)”; and
 
(ii)        omitting “Revocation, Declaration and Exemption” and substituting “Revocation and Declaration”; and
 
 [Don't think we need to say "of the Act" 3 times in a sentence]
(b)        omitting paragraph 2  and substituting:
 
“2.       after subsection (1) inserting:
     
"(1A)   The constitution of a registered scheme that is a time-sharing scheme need not make adequate provision for the consideration that is to be paid to acquire an interest in the scheme to the extent that the constitution contains provisions to the effect that interests in the scheme may be issued at a price disclosed in the Product Disclosure Statement for the interests and provided that all of [as discussed at some length in yesterday’s drafting session] the following requirements are satisfied:
 
(a)       the responsible entity operating the time-sharing scheme (operator) [as "responsible entity" is not capitalised it is preferable to not capitalise "operator" in the legislation either,] must ensure that any application for an investment in the scheme is voidable at the option of the applicant during a period of not less than 14 calendar days commencing on the date on which the applicant acknowledges receipt of the Product Disclosure Statement (including, where applicable, a loose-leaf price list) and the cooling-off statement referred to in paragraph (c);
 
(b)       the operator must not issue or sell any interest in the time-sharing scheme, or allow any other person to issue or sell an interest in the scheme, unless the applicant has provided the acknowledgment of receipt referred to in paragraph (a);
 
(c)       each application form relating to an interest in the time-sharing scheme must be accompanied by a separate statement in a form approved by ASIC which:
 
(i)        describes the effect of the cooling-off period referred to in paragraph (a); and
 
(ii)       states that a signed application form will be of no effect unless the applicant also signs an acknowledgment of receipt of such a cooling-off statement;
 
(d)       the rights referred to in paragraph (a) must be disclosed prominently in the Product Disclosure Statement and application form which relate to the offer of interests in the time-sharing scheme;
 
(e)       the operator must ensure that the rights referred to in paragraph (a) are provided to the applicant, and the obligations in paragraphs (c) and (d) are complied with, by any other person who:
 
(i)        offers an interest in the time-sharing scheme for issue; or
 
(ii)       offers an interest in the time-sharing scheme for sale where such offer needs disclosure because of section 1012A or 1012C;
 
(f)        the operator must maintain written records relating to the issue by it of all cooling-off statements referred to in paragraph (c),which include:
 
(i)        each person's signed acknowledgment of receipt of such a statement; and
 
(ii)       the date of issue of each statement; and
 
(iii)      the identity of persons to whom each statement has been issued;
 
(g)       the operator must pay any continuing charges and levies payable with respect to any unsold interests in the time-sharing scheme calculated on the same basis that applies to holders of interests in the time-sharing scheme;
 
(h)       the operator must provide to the holders of interests in the time-sharing scheme, at least annually, a statement containing full details of the composition and calculation of the continuing  charges and levies to be imposed on members;
 
(i)        if the operator receives a deposit for an interest in the time-sharing scheme and that interest relates to a property development or a part of a property development that has not been completed to the stage at which it is ready for occupation, the operator must:
 
(i)        immediately refund to the applicant any part of the deposit money in excess of 30% of the price payable for the interest; and
 
(ii)       hold the balance of the deposit money in a trust account on trust for the applicant until the operator complies with subparagraph (iii) below; and
 
 
(iii)      if the relevant property development or part of the property development has not been completed to the stage at which it is ready for occupation by the date specified in the Product Disclosure Statement — return to the applicant the deposit money and any income earned on the deposit money (less any fees and disbursements properly chargeable against the income)."”; and
 
(c)        omitting all of the text between paragraph 2 and “Commencement”.
 
 
Dated the 8thth 7th day of February 2007
 
 
 
 
Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission