Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.7 - CONTROL, FINANCIAL SERVICES AND DISCLOSURE  

Division 4 - Financial services and markets  

SECTION 1241S   PRODUCT DISCLOSURE STATEMENTS - SITUATIONS WHEN NOT REQUIRED FOR CCIVs  

No consideration to be provided

1241S(1)    
Paragraph 1012D(5)(b) also applies to the case where the financial product is not an option and is a security in a CCIV.

Client is associated with the CCIV

1241S(2)    
Treat section 1012D as also providing that, in a recommendation situation, an issue situation or a sale situation, the regulated person does not have to give the client a Product Disclosure Statement if:

(a)    the financial product is a security in a CCIV; and

(b)    the client is associated (within the meaning of subsection (3) of this section) with the CCIV.

1241S(3)    
For the purposes of subsection (2) , the client is associated with the CCIV if the client is:

(a)    the corporate director of the CCIV; or

(b)    a director or secretary of that corporate director; or

(c)    a senior manager of the corporate director or of a related body corporate of that corporate director; or

(d)    a spouse, parent, child, brother or sister of a person who is a director or senior manager of:

(i) that corporate director; or

(ii) a related body corporate of that corporate director; or

(e)    a body corporate controlled by a person referred to in paragraph (a) , (b) , (c) or (d) .

Dividend reinvestment plan or bonus share plan

1241S(4)    
Treat section 1012D as also providing that, in a recommendation situation or issue situation, the regulated person does not have to give the client a Product Disclosure Statement for a fully-paid share in a CCIV if:

(a)    the client already holds a share, of the same kind, in the CCIV; and

(b)    either:

(i) in a recommendation situation - the advice that constitutes the relevant conduct relates to an offer made under a dividend reinvestment plan or bonus share plan; or

(ii) in an issue situation - the offer or issue that constitutes the relevant conduct is made under a dividend reinvestment plan or bonus share plan.

Note: For when such a share is of the same kind, see section 1241R .

Compromise or arrangement under Part 5.1

1241S(5)    
Treat section 1012D as also providing that, in an issue situation or a sale situation, the regulated person does not have to give the client a Product Disclosure Statement if the issue situation or sale situation is an offer:

(a)    of securities in a CCIV; and

(b)    made under a compromise or arrangement under Part 5.1 approved at a meeting held as a result of an order under subsection 411(1) or (1A) .

Rights issues

1241S(6)    
Subsection 1012DAA(3) also applies to contraventions of the following provisions:

(a)    if the relevant product is a security in a CCIV - the provisions of Chapter 2M (as affected by Division 4 of Part 8.4B ), or the provisions of that Division, as they:

(i) apply to the CCIV; or

(ii) apply for a sub-fund of the CCIV;

(b)    if the relevant product is a security in a CCIV - section 675 as it applies to the CCIV.

1241S(7)    
Treat subsection 1012DAA(7) as:

(a)    providing that paragraph 1012DAA(7)(d) applies only if the relevant product is an interest in a registered scheme; and

(b)    also including the following paragraph:

" (da) if the relevant product is a security in a CCIV - states that, as at the date of the notice, the CCIV has complied with the provisions of Chapter 2M (as affected by Division 4 of Part 8.4B ), and the provisions of that Division, as they:

(i) apply to the CCIV; and

(ii) apply for each sub-fund of the CCIV; and " .

Small scale offerings

1241S(8)    
Section 1012E also applies to financial products that are securities in a CCIV. For the purposes of that section, to the extent that those securities are referable to a sub-fund of the CCIV, treat the:

(a)    20 purchasers ceiling (subsections 1012E(6) and (7) ); and

(b)    $2 million ceiling (subsections 1012E(6) and (7) );

as applying only to financial products that are securities referable to that sub-fund of the CCIV.