Corporations Act 2001
Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .
View history note
Hide history noteCCH Note: Division 7 is modified by the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716; the ASIC Corporations (Removing Barriers to Electronic Disclosure) Instrument 2015/649; the ASIC Corporations (Shorter PDS and Delivery of Accessible Financial Products Disclosure by Platform Operators and Superannuation Trustees) Instrument 2022/497; the ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/668; the ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669; and the ASIC Corporations (Discretions for Setting the Issue Price and Withdrawal Price of Interests in Managed Investment Schemes) Instrument 2023/693.
CCH Note: Subdivision A is modified by the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716; the ASIC Corporations (Removing Barriers to Electronic Disclosure) Instrument 2015/649; the ASIC Corporations (Shorter PDS and Delivery of Accessible Financial Products Disclosure by Platform Operators and Superannuation Trustees) Instrument 2022/497; the ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/668; the ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669; and the ASIC Corporations (Discretions for Setting the Issue Price and Withdrawal Price of Interests in Managed Investment Schemes) Instrument 2023/693.
CCH Note: Section 1021FB is modified by the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716; the ASIC Corporations (Removing Barriers to Electronic Disclosure) Instrument 2015/649; the ASIC Corporations (Shorter PDS and Delivery of Accessible Financial Products Disclosure by Platform Operators and Superannuation Trustees) Instrument 2022/497; the ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/668; the ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669; and the ASIC Corporations (Discretions for Setting the Issue Price and Withdrawal Price of Interests in Managed Investment Schemes) Instrument 2023/693.
Product issuer knows information is defective
1021FB(1)
The issuer of a financial product commits an offence if:
(a) the issuer provides information (whether in a document or otherwise) relating to the product to a person:
(i) for the purpose of the information being communicated under paragraph 1012G(3)(a) ; or
(ii) knowing that it is likely that the information will be so communicated; and
(b) the issuer knows that, if the person communicates the provided information for the purpose of paragraph 1012G(3)(a) , the information communicated will be defective.
Product issuer knows information is not all the required information
1021FB(2)
The issuer of a financial product commits an offence if:
(a) the issuer provides information (whether in a document or otherwise) relating to the product to a person:
(i) for the purpose of it being communicated under paragraph 1012G(3)(a) ; or
(ii) knowing that it is likely that it will be so communicated; and
(b) the provided information relates to a matter or matters, but the issuer knows that it is not all of the information relating to the matter or matters that is required to be so communicated; and
(c) the issuer is reckless as to whether the person will or may communicate information for the purposes of paragraph 1012G(3)(a) on the basis that the provided information is all the information relating to the matter or matters that is required to be so communicated.
Product issuer provides information that results in information required by paragraph 1012G(3)(a) being defective
1021FB(3)
The issuer of a financial product commits an offence if:
(a) the issuer provides information (whether in a document or otherwise) relating to the product to a person:
(i) for the purpose of it being communicated under paragraph 1012G(3)(a) ; or
(ii) knowing that it is likely that it will be so communicated; and
(b) the person communicates the information for the purpose of paragraph 1012G(3)(a) ; and
(c) the information communicated is defective because it includes the provided information (whether or not it is defective for other reasons).
1021FB(4)
For the purposes of an offence based on subsection (3), strict liability applies to the physical element of the offence specified in paragraph (3)(c).
Note: For strict liability , see section 6.1 of the Criminal Code .
Defence to subsection (3) offence
1021FB(5)
In any proceedings against the issuer of a financial product for an offence based on subsection (3), it is a defence if the issuer took reasonable steps to ensure that the information they provided would not be such as to make the information communicated for the purpose of paragraph 1012G(3)(a) defective.
Note: A defendant bears an evidential burden in relation to the matters in subsection (5). See subsection 13.3(3) of the Criminal Code .
Product issuer does not provide all the required information
1021FB(6)
The issuer of a financial product commits an offence if:
(a) the issuer provides information (whether in a document or otherwise) relating to the product to a person:
(i) for the purpose of it being communicated under paragraph 1012G(3) (a); or
(ii) knowing that it is likely that it will be so communicated; and
(b) the provided information relates to a matter or matters, but it is not all of the information relating to the matter or matters that is required to be so communicated; and
(c) the person communicates information for the purpose of paragraph 1012G(3)(a) on the basis that the provided information is all the information relating to the matter or matters that is required to be so communicated; and
(d) the information communicated is defective because it includes only that information about the matter or matters (whether or not it is also defective for other reasons).
1021FB(7)
For the purposes of an offence based on subsection (6), strict liability applies to the physical elements of the offence specified in paragraphs (6)(b) and (d).
Note: For strict liability , see section 6.1 of the Criminal Code .
Defence to subsection (6) offence
1021FB(8)
In any proceedings against the issuer of a financial product for an offence based on subsection (6), it is a defence if the issuer took reasonable steps to ensure that the information they provided about the matter or matters would be all the information about the matter or matters that would be required by paragraph 1012G(3)(a) to be communicated.
Note: A defendant bears an evidential burden in relation to the matters in subsection (8). See subsection 13.3(3) of the Criminal Code .
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