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CORPORATIONS REGULATIONS 2001 2001 No. 193 - REG 7.4.01A

Exemption from certain requirements in relation to contract notes
(1)
In this regulation:

"order" means an instruction to buy or sell securities.

(2)
Section 842 of the Act has effect in relation to a dealer to the extent that the requirements of the section are subject to this regulation.

Sending a contract note electronically

(3)
The requirement of subsection 842 (2) of the Act that, in respect of a transaction of sale or purchase of securities, a dealer immediately give a contract note that complies with subsection 842 (3) of the Act to the person for whom the dealer entered into the transaction (the client ) is satisfied if, in respect of the transaction, the following conditions are satisfied:

(a)
the client has given to the dealer prior authorisation to send any contract note electronically to the client in relation to that transaction or all transactions (or all transactions included in a class in which that transaction is included) entered into for the client by the dealer;

(b)
the dealer sends the contract note electronically to the client in accordance with the authorisation.

Giving a single contract note for multiple transactions

(4)
The requirement of subsection 842 (2) of the Act that, in respect of a transaction of sale or purchase of securities, a dealer immediately give a contract note that complies with subsection 842 (3) of the Act to the person for whom the dealer entered into the transaction (the client ) is satisfied if, in respect of the transaction, the following conditions are satisfied:

(a)
the dealer is a member of a securities exchange;

(b)
the transaction takes place in accordance with the business rules of the securities exchange;

(c)
the transaction forms part of a series of transactions made to complete an order placed with the dealer;

(d)
the client has given to the dealer, in relation to that order or all orders (or all orders included in a class in which that order is included) placed with the dealer by the client, prior authorisation to give to the client a single contract note in respect of a series of transactions carried out under the order instead of an individual contract note in respect of each transaction in the series;

(e)
the dealer gives to the client a single contract note in respect of a series of transactions in which the transaction is included that:

(i)
is in accordance with the authorisation; and
(ii)
subject to subregulation (5), complies with subsection 842 (3) of the Act;
(f)
the contract note is given:

(i)
before the end of the business day on which that series of transactions was carried out; or
(ii)
otherwise as permitted by the business rules of the securities exchange.

Price averaging

(5)
The requirement of paragraph 842 (3) (g) of the Act that a contract note in respect of a transaction of sale or purchase of securities given to a person (the client ) by a dealer specify the price per unit of the securities to which the transaction relates is satisfied if the following conditions are satisfied:

(a)
the dealer is a member of a securities exchange;

(b)
the transaction takes place in accordance with the business rules of the securities exchange;

(c)
the transaction forms part of a series of transactions made to complete an order placed with the dealer;

(d)
the client has, in accordance with the business rules of the securities exchange, given to the dealer, in relation to that order or all orders (or all orders included in a class in which that order is included) placed with the dealer by the client, prior authorisation to give to the client a single contract note in respect of the series of transactions that specifies the average price per unit of securities sold or purchased in the series of transactions, instead of an individual contract note in respect of each transaction in the series that specifies the price per unit of the securities bought or sold in the transaction to which each contract note relates;

(e)
the dealer gives the contract note to the client in accordance with the authorisation;

(f)
unless otherwise provided by the business rules of the securities exchange, the dealer, if requested to do so by the client, also gives to the client a document that specifies the price per unit of the securities sold or bought in each transaction in the series.

Authorisations

(6)
For this regulation, an authorisation given by a person to a dealer:

(a)
must be given orally, or in writing, by the person; and

(b)
is effective until it is revoked, either orally or in writing, by the person.

(7)
If a person gives an oral authorisation to a dealer, or revokes an authorisation orally, the dealer must:

(a)
make a written record of the authorisation or revocation; and

(b)
send a copy of the written record to the person.



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