Corporations Regulations 2001

SCHEDULE 10C - FORM AND CONTENT OF PRODUCT DISCLOSURE STATEMENT - STANDARD MARGIN LENDING FACILITY  

(regulation 7.9.11D )

6  

6   Contents of section 4 (What is a margin call?)  

Section 4 of the Product Disclosure Statement for a standard margin lending facility must include:

(a) if the terms of the standard margin lending facility include a margin call:

(i) an explanation of what a margin call is; and

(ii) an explanation of when there will be a margin call in response to changes in the market; and

(iii) an explanation of when there will be a margin call at the discretion of the provider of the standard margin lending facility; and

(iv) at least 1 example of how a margin call works, including:

(A) the impact of breaching the loan-to-value ratio ( LVR ) for the standard margin lending facility; and

(B) how to adjust the LVR back to the required level for the standard margin lending facility; and

(C) how the buffer (if any) for the standard margin lending facility operates; and

(v) a description of how a margin call can be dealt with by the borrower for the standard margin lending facility; and

(vi) a statement that if there is a margin call, the provider of the standard margin lending facility will notify the borrower for the standard margin lending facility, or the borrower ' s financial advisor, that the margin call has occurred; and

(vii) a statement that the borrower for the standard margin lending facility must be contactable at all times in case of a margin call; and

(b) if the terms of the standard margin lending facility do not include a margin call, a statement to that effect.