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CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS    View history reference

PART 7.9 - FINANCIAL PRODUCT DISCLOSURE AND OTHER PROVISIONS RELATING TO ISSUE, SALE AND PURCHASE OF FINANCIAL PRODUCTS    View history reference

Division 2 - Product Disclosure Statements    View history reference

Subdivision B - Requirement for a Product Disclosure Statement to be given    View history reference

SECTION 1012B  OBLIGATION TO GIVE PRODUCT DISCLOSURE STATEMENT - SITUATIONS RELATED TO ISSUE OF FINANCIAL PRODUCTS  

 View history reference

1012B(1)  Section sets out issue situations in which Product Disclosure Statement required.  


This section sets out situations in which:


(a) an offer relating to the issue of a financial product; or


(b) the issue of a financial product;

gives rise to an obligation on a regulated person to give another person a Product Disclosure Statement for the product.

1012B(2)  [Interpretation]  


For the purposes of this Division:


(a) each of the situations is an issue situation; and


(b) the relevant conduct for that situation is the conduct by the regulated person that gives rise to the obligation to give the Product Disclosure Statement; and


(c) the client for that situation is the person to whom the financial product is to be or is issued.

1012B(3)  The main issue situations.  


A regulated person must give a person a Product Disclosure Statement for a financial product if:


(a) the regulated person:


(i) offers to issue the financial product to the person; or

(ii) offers to arrange for the issue of the financial product to the person; or

(iii) issues the financial product to the person in circumstances in which there are reasonable grounds to believe that the person has not been given a Product Disclosure Statement for the product; and


(b) the financial product is, or is to be, issued to the person as a retail client.

The Product Disclosure Statement must be given at or before the time when the regulated person makes the offer, or issues the financial product, to the person and must be given in accordance with this Division.

Note: If a Product Disclosure Statement is given when the offer is made, it will not need to be given again when the product is issued to the person (see subsection 1012D(1)) unless the Product Disclosure Statement that was given is no longer up to date.

1012B(4)  Receiving offer to acquire financial product.  


A regulated person must give a person a Product Disclosure Statement for a financial product if:


(a) the person makes an offer to the regulated person to acquire the financial product; and


(b) the person would acquire the financial product by way of the issue of the product to the person (rather than the transfer of the product to the person); and


(c) the financial product is to be issued to the person as a retail client.

The Product Disclosure Statement must be given to the person before the person becomes bound by a legal obligation to acquire the financial product pursuant to the offer and must be given in accordance with this Division.

[CCH Note: For s 1012B(4A) and (4B), see Corporations Regulations Schedule 10A, Part 17 - Modifications relating to application forms for specified superannuation products, item 17.1]

1012B(5)  This section has effect subject to other provisions.  

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This section has effect subject to sections 1012D, 1012DAA, 1012E, 1012F, 1012G and 1014E.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
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