ch 4 - financial services - legal services

Question 1

what is not a specified investment?

Answer 1

Land and certain National savings products

Question 2

what is the four stage test to determine if an activity is regulated?

Answer 2

Business?
Specified investment?
Specified activity?
Exclusion?

Question 3

what is the general prohibition?

there is also financial promotions restriction.

Answer 3

can’t carry out a regualted activity unless authorised or exempt.

penalty = 2 year imprisonment or unlimited fine.

Question 4

for the takeover exlcusion to apply - the shares acquired or disposed of must be

Answer 4

50% or more of the voting shares in the body corporate.

AND

between parties who are body corporate/ partnership/ single individual/ group of connected individuals.

Can add the number of shares being acquired to those already held.

Group of connected individuals - single group of people each of whom is director/ manager of company or close relative/ trustee of manager/ director

Over 50% requirement not met - acquisition of day to day control of affairs exclusion still aplies.

Question 5

s327 does it result in the activity ceasing to be a regulated activity?

Answer 5

s327 exemption does not result in the act ceasing to be regulated but it is exempt and can be carried on without authorisation provided the conditions are met.

with an exclusion the act ceases to be a regulated activity.