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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 F - Other rights and obligations related to Product Disclosure Statements    View history reference

SECTION 1016D  CONDITION ABOUT ABILITY TO TRADE ON A MARKET MUST BE FULFILLED BEFORE ISSUE OR SALE  

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1016D(1)  [Trading on a financial market]  

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If a Product Disclosure Statement for a financial product states or implies that a financial product to which the Statement relates will be able to be traded on a financial market (whether in Australia or elsewhere), the responsible person must only issue or sell a financial product of that kind, pursuant to an application made in response to the Statement, if:


(a) the product is able to be traded on that market; or


(b) an application has, within 7 days after the relevant date (see subsection (3)), been made to the operator of that market for the taking of such action as is necessary to enable financial products of that kind to be traded on that market.

Paragraph (b) ceases to apply to the financial product at the end of the period of 3 months starting on the relevant date.

Note 1: Statements in a Supplementary Product Disclosure Statement are taken to be contained in the Product Disclosure Statement it supplements (see section 1014D).

Note 1A: This subsection does not apply to an issue or sale pursuant to paragraph 1016E(2)(c) (see subsection 1016E(2C)).

Note 2: Failure to comply with this subsection is an offence (see subsection 1311(1)).

1016D(2)  Issue or transfer void if quotation condition not fulfilled.  


If a Product Disclosure Statement for a financial product states or implies that the financial product is to be quoted on a financial market (whether in Australia or elsewhere) and:


(a) an application has not, within 7 days after the relevant date (see subsection (3)), been made to the operator of that market for the taking of such action as is necessary to enable financial products of that kind to be traded on that market; or


(b) the product is not able to be traded on that market at the end of 3 months after the relevant date;

then:


(c) an issue or transfer to a person of a financial product of that kind is void if:

(i) the issue or transfer is pursuant to an application made in response to the Statement; or

(ii) the person should have been given the Statement; and
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(d) if:

(i) an issue or transfer of a financial product to a person is void because of paragraph (c); and

(ii) the responsible person received money from that person on account of the issue or transfer - the responsible person must, as soon as practicable, return the money to that person.

Note 1: Paragraphs (c) and (d) do not apply to an issue or sale pursuant to paragraph 1016E(2)(c) (see subsection 1016E(2C)).

Note 2: Failure to comply with paragraph (d) is an offence (see subsection 1311(1)).

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1016D(3)  The relevant date.  


For the purposes of this section, the relevant date in relation to an express or implied statement is:


(a) if the statement is express or implied in a Product Disclosure Statement, disregarding the effect of section 1014D - the date of the Product Disclosure Statement; or
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(b) if the statement is express or implied in a Supplementary Product Disclosure Statement - the date of the Supplementary Product Disclosure Statement; or
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(c)  if the statement is express or implied in a Replacement Product Disclosure Statement (whether or not it is express or implied in the earlier Product Disclosure Statement it replaces) - the date of the Replacement Product Disclosure Statement.
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[CCH Note: Act No 101 of 2007, Sch 1, Pt 6[230] contained the following application provision (which was effective 28 June 2007):

Application of items 8, 70, 94, 146 to 150 and 156 to 158

The amendments made by items 8, 70, 94, 146 to 150 and 156 to 158 of this Schedule apply in relation to a Product Disclosure Statement that is lodged with ASIC whether the Statement is lodged before, on or after the day the amendments commence.

]

 



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