Commonwealth Numbered Regulations

FOREIGN ACQUISITIONS AND TAKEOVERS REGULATION 2015 (SLI NO 217 OF 2015) - REG 27

             (1)  The Act does not (subject to subsections (2) and (3)) apply in relation to an interest in securities, assets, a trust, Australian land or a tenement if:

                     (a)  the interest is:

                              (i)  held solely by way of security for the purposes of a moneylending agreement; or

                             (ii)  acquired by way of enforcement of a security held solely for the purposes of a moneylending agreement; and

                     (b)  the entity that holds or acquires the interest is:

                              (i)  the entity (the first entity ) that entered the moneylending agreement; or

                             (ii)  a subsidiary or holding entity of the first entity; or

                            (iii)  a person who is (alone or with others) in a position to determine the investments or policy of the first entity; or

                            (iv)  a security trustee who holds or acquires the interest on behalf of the first entity; or

                             (v)  a receiver, or a receiver and manager, appointed in relation to a person or entity mentioned in any of subparagraphs (i) to (iv).

Interests relating to residential land

             (2)  For an interest in residential land where the first entity is not a foreign government investor, the Act does not apply in relation to the interest only if:

                     (a)  an entity (the key entity ) that is:

                              (i)  the first entity; or

                             (ii)  a holding entity of the first entity;

                            is an ADI, or otherwise licensed (whether or not in Australia) as a financial institution; and

                     (b)  if the key entity is not an ADI:

                              (i)  there are at least 100 holders of securities in the key entity; or

                             (ii)  the key entity is listed for quotation in the official list of a stock exchange (whether or not in Australia).

Interests acquired by foreign government investors

             (3)  For an interest acquired by a foreign government investor by way of enforcement of a security as mentioned in subparagraph (1)(a)(ii), the Act does not apply in relation to the interest only if:

                     (a)  for a foreign government investor that is an ADI or a subsidiary of an ADI:

                              (i)  12 months have not passed since the acquisition of the interest; or

                             (ii)  at least 12 months have passed since the acquisition of the interest and the foreign government investor is making a genuine attempt to dispose of the interest; or

                     (b)  otherwise:

                              (i)  6 months have not passed since the acquisition of the interest; or

                             (ii)  at least 6 months have passed since the acquisition of the interest and the foreign government investor is making a genuine attempt to dispose of the interest.

Note 1:       Examples of the kinds of actions that may constitute a genuine attempt to dispose of an interest include deciding on the method of disposal, and complying with any requirements of a law that apply before the interest can be disposed of.

Note 2:       The effect of this section is that:

(a)    acquisitions of interests mentioned in this section are not significant actions or notifiable actions; and

(b)    such interests are to be disregarded for other purposes, such as in determining whether a person holds a substantial interest in an entity or is a subsidiary of another entity.