What are the safeguards for me as a member?
Below is a summary of the safeguards associated with purchasing a Membership in the Club. As a Member, you can rely on a number of legal and regulatory safeguards which are designed to protect and preserve your Membership interest over the life of the Club.
The Club is a registered Managed Investment Scheme
The Club is a registered Managed Investment Scheme regulated under Chapter 5C of the Australian Corporations Act and regulated by the Australian Securities and Investments Commission (ASIC).
The Responsible Entity holds a Financial Services Licence
The Responsible Entity is required to hold an Australian Financial Services Licence in order to manage and operate the Club and to sell Membership interests in the Club. For more information about this, please consult your Financial Services Guide.
Responsible Entity must act in the best interests of Members
The Responsible Entity is required to operate the Club in accordance with the Corporations Act and the Constitution and in the best interests of Members.
The Club must act in accordance with its Constitution
The Club is required at all times to maintain a Constitution which regulates the affairs of the Club.
The Constitution cannot be amended in a manner that would adversely affect Members’ rights without the Members approving that amendment at a meeting of Members.
Club Property is held securely for Members.
The Responsible Entity is subject to statutory and Constitutional obligations to ensure Club Property is securely held for Members. This will remain the case even if the Developer ceases trading.
The Responsible Entity does this by either holding Club Property on trust for Club Members itself or via entering into custodian arrangements with third party specialist custodian companies or holding arrangements with related entities.
Première Points are “inflation proof”
Première Points are described as “inflation proof” because they are purchased at today’s prices and held until 2080.
You can transfer your Membership
When you pay a transfer fee, which is currently AU$300, as a Member you are able to transfer their Membership by sale, gift, will or intestate disposition.
However, it is important to note that Developer benefits are generally not transferable, unless the Developer expressly agrees. Personal benefits are extinguished on transfer unless the Responsible Entity otherwise determines, except by transmission on death.
As the Club grows, new Club Apartments will be purchased.
Pursuant to the Constitution, new Memberships are unable to be offered unless new Club Apartments are first purchased or leased on behalf of the Club to support the issue of those new Memberships.
In other words, there must always be sufficient Club Property to support the expected use and occupancy of Club Property, through Première Points, on a maximum annual use basis by current Members.
If Club Apartments are sold they must be replaced with other Club Apartments or the Première Points pool must be rebalanced
Pursuant to the Constitution, a Club Property cannot be sold unless the Responsible Entity replaces that property with a new property of the same or greater Première Points value or there is a reduction in the Première Points pool effected by a proportionate reduction in entitlements of all members.
The Responsible Entity must maintain a Compliance Plan which is overseen by an external compliance committee
The Responsible Entity is required at all times to maintain a Compliance Plan which prescribes mandatory procedures and guidelines which the Responsible Entity fulfils to ensure the Club’s compliance with its obligations under the Corporations Act, its AFS Licence and the Constitution.
The Responsible Entity’s compliance with the Compliance Plan is supervised by a compliance committee, which meets quarterly to review compliance with the Compliance Plan. The majority of committee members are independent of the Responsible Entity and of the Developer.
The Club and Responsible Entity are regularly audited
Independent ASIC registered auditors are require–d to complete periodic audits of the financial affairs of the Club and the Responsible Entity, as well as audits in relation to compliance with the financial conditions of the Responsible Entity’s AFS Licence and the Responsible Entity’s compliance with the Compliance Plan.
Members can call meetings
Members have the power to requisition meetings and to vote on certain matters including the removal and replacement of the Responsible Entity and early dissolution of the Club.
The Responsible Entity is a member of an external dispute resolution scheme
The Responsible Entity is required to belong to an ASIC approved independent external dispute resolution scheme, known as the Credit Ombudsman Service Limited (or COSL), where Member complaints not resolved internally by the Responsible Entity may be referred for resolution at no further cost to the Member.
To find out more If you would like to find out more about points based timeshare scheme please see the Australian Securities and Investments Commission (ASIC) website (www.moneysmart.gov.au).