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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 3 - Other disclosure obligations of the issuer of a financial product    View history reference

SECTION 1017BC  OBLIGATIONS RELATING TO INVESTMENT OF ASSETS OF REGISTRABLE SUPERANNUATION ENTITIES - GENERAL RULE ABOUT GIVING NOTICE AND PROVIDING INFORMATION  

 View history reference

1017BC(1)  

This section applies if:


(a) a person (the first party) enters into an arrangement with another person (the second party); and


(b) under the terms of the arrangement, the first party acquires a financial product from the second party; and


(c) the first party acquires the financial product in this jurisdiction; and


(d) the first party knows, or reasonably ought to know, that an asset that is the subject of the arrangement is, or is derived from, an asset of a registrable superannuation entity; and


(e) the arrangement is not of a kind prescribed by the regulations as an arrangement to which this section does not apply.

Obligation of first party

1017BC(2)  

The first party must, at the time the arrangement is entered into, notify the second party of the following:


(a) that an asset that is the subject of the arrangement is, or is derived from, the assets of a registrable superannuation entity;


(b) details of the trustee, or the trustees, of the registrable superannuation entity.

[CCH Note: ASIC Class Order [CO 14/443], effective 22 May 2014, provides relief for the operation of s 1017BC(2). For details, see the CCH Note under s 1017BA(1).]

Obligations of second party

1017BC(3)  

If the second party is notified by the first party in accordance with subsection (2), the second party must provide the trustee, or the trustees, of the registrable superannuation entity with information about:


(a) the financial product acquired by the first party; and


(b) if the second party knows, or reasonably ought to know, that:


(i) an asset about which the second party was notified by the first party will be used, by the second party or another person, to acquire another financial product - that financial product; or

(ii) an asset about which the second party was notified by the first party will be used, by the second party or another person, to acquire property other than a financial product - that other property;

sufficient to allow the trustee, or the trustees, of the registrable superannuation entity to satisfy the obligation under section 1017BB.

[CCH Note: ASIC Class Order [CO 14/443], effective 22 May 2014, provides relief for the operation of s 1017BC(3). For details, see the CCH Note under s 1017BA(1).]

Obligation of agent of first party

1017BC(4)  

If the financial product is acquired in this jurisdiction on behalf of the first person by a person (the agent) other than a person who is the provider or acquirer under a custodial arrangement:


(a) the agent must notify the second party in accordance with subsection (2) on behalf of the first party; and


(b) if the agent so notifies the second party, the first party is taken to have satisfied the obligation under that subsection.

Definitions

1017BC(5)  

In this section:

acquirer , in relation to a custodial arrangement, has the same meaning as in subsection 1012IA(1).

custodial arrangement has the same meaning as in subsection 1012IA(1).

provider , in relation to a custodial arrangement, has the same meaning as in subsection 1012IA(1).


 



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