Corporations Amendment Regulations 2010 (No. 5) (135 of 2010)

Schedule 1   Amendments

[6]   Part 7.9, Division 4, after Subdivision 4.2

insert

Subdivision 4.2A Form and content of Product Disclosure Statement for margin loan

7.9.11 Application of Subdivision 4.2A

This Subdivision applies to:

(a) a person who is required to prepare a Product Disclosure Statement for a margin loan; and

(b) a Product Disclosure Statement for a margin loan.

7.9.11A Provisions of Part 7.7 of Act that do not apply in relation to margin loan

For paragraph 951C (1) (b) of the Act, section 942DA of the Act does not apply in relation to a margin loan.

7.9.11B Definitions for Subdivision 4.2A

(1) In this Subdivision and in Schedule 10C:

Approved Securities List means the list of secured properties that are acceptable for the provider or potential provider of a margin loan as security for the margin loan and includes the amount of credit the provider will give for each of the properties.

(2) In this Subdivision and in Schedule 10C, a provision of the Act that is modified in accordance with regulation 7.9.11C is referred to as modified .

Example

Paragraphs 1013C (1) (a) and (b) of the Act as modified by subitem 5A.2 (1) of Part 5A of Schedule 10A are referred to in this Subdivision as ‘modified paragraphs 1013C (1) (a) and (b)’.

7.9.11C Modification of Act - margin loan

For paragraph 1020G (1) (c) of the Act, Part 7.9 of the Act is modified in its application to a margin loan as set out in Part 5A of Schedule 10A.

7.9.11D Form and content of Product Disclosure Statement for margin loan

(1) For modified paragraph 1013C (1) (a) of the Act, a Product Disclosure Statement for a margin loan must include the information and statements mentioned in Schedule 10C.

(2) For modified paragraph 1013C (1) (b) of the Act, a Product Disclosure Statement for a margin loan must be in the form mentioned in Schedule 10C.

7.9.11E Requirements for references to incorporated information for margin loan

(1) For subsection 1013C (1B) of the Act, as modified by Part 5A of Schedule 10A, this regulation prescribes requirements for applying, adopting or incorporating, in a Product Disclosure Statement for a margin loan, a matter contained in writing.

(2) A Product Disclosure Statement may apply, adopt or incorporate a matter only if a provision of these Regulations requires or permits the matter to be applied, adopted or incorporated by the Statement.

(3) If a Product Disclosure Statement applies, adopts or incorporates a matter:

(a) the matter must be:

(i) in writing; and

(ii) clearly distinguishable from any other matters that are not applied, adopted or incorporated; and

(iii) publicly available in a document other than the Statement; and

(b) the responsible person for the Statement must identify the matter by:

(i) including in the Statement a concise description of the matter; and

(ii) ensuring that the reference to the matter is clearly distinguishable from the other contents of the Statement; and

(c) the responsible person for the Statement must:

(i) identify each version of the matter (by including the date on which the version was prepared) so that a person who, at a particular time, is considering a margin loan can identify the version that is relevant to the margin loan at that time; and

(ii) state the date on which the version was prepared in a prominent position at or near the front of the version; and

(d) the responsible person for the Statement must ensure that a person who is relying on the Statement is able to have access to:

(i) the matter; or

(ii) if there is more than 1 version of the matter - each version;

reasonably easily and reasonably quickly.

(4) The responsible person for the Product Disclosure Statement must also ensure that the Statement includes the statements in the following table relating to the matter, and sets them out in each place at which the matter has been applied, adopted or incorporated.

(5) The responsible person for the Product Disclosure Statement must also ensure that each document mentioned in subregulation (3) includes the statement in the following table relating to the matter.

(6) For the avoidance of doubt:

(a) the giving of a Product Disclosure Statement to which this Subdivision applies is taken to be the giving of every matter that is applied, adopted or incorporated in accordance with subregulations (1) to (5); and

(b) if a document mentioned in subparagraph (3) (a) (iii) refers to more than one PDS, the document:

(i) must include a statement to the effect that the information in the document forms part of the Product Disclosure Statement offered by the responsible entity; but

(ii) is not required to name each Product Disclosure Statement of which it forms part.

(7) If the Product Disclosure Statement applies, adopts or incorporates a matter, the information dealing with the matter is taken to have been given to a person on the day on which the person signs the application form accompanying the Statement.

7.9.11F Retention of copies of Product Disclosure Statement for margin loan

(1) The responsible person for a Product Disclosure Statement for a margin loan must retain a copy of each version of the Statement that the responsible person issues for a period of 7 years starting on the day on which the version is prepared.

(2) The responsible person for the Product Disclosure Statement must retain a copy of the document from which a matter is applied, adopted or incorporated by the Statement as mentioned in paragraph 7.9.11E (3) (c) for a period of 7 years commencing on the day on which the Statement is prepared.

(3) If a document from which a matter is adopted, applied or incorporated by the Product Disclosure Statement as mentioned in paragraph 7.9.11E (3) (c) is changed in a way that changes the description of, or reference to, the matter, the responsible person for the Statement must retain a copy of the document for a period of 7 years commencing on the day on which the document is changed.

7.9.11G Requirement to provide copy of Product Disclosure Statement for margin loan free of charge

(1) For paragraph 1015C (5) (a) of the Act, this regulation specifies requirements as to the manner in which a Product Disclosure Statement for a margin loan must be given to a person if the person requests a copy of the Statement.

(2) The responsible person for the Product Disclosure Statement must give the person, free of charge:

(a) a copy of the Statement within 8 business days; and

(b) a copy of a matter in writing that is applied, adopted or incorporated by the Statement within 8 business days.

7.9.11H Notification about change to Approved Securities List or current interest rate for margin loan

(1) For paragraph 1017B (1A) (b) of the Act, a change to the Approved Securities List or current interest rate for a margin loan is specified.

(2) For paragraph 1017B (3) (c) of the Act, the issuer of the margin loan must notify the holder of the change by:

(a) sending notice of the change to the holder:

(i) by pre-paid post to a postal address nominated by the holder; or

(ii) to an email address nominated by the holder; or

(b) placing a notice on a webpage that is likely to come to the holder’s attention if the holder is monitoring the holder’s margin loan.

Subdivision 4.2B Content of Product Disclosure Statement for superannuation product

7.9.11K Application of Subdivision 4.2B

(1) This Subdivision applies to:

(a) a superannuation trustee that is required to prepare a Product Disclosure Statement for a superannuation product; and

(b) a Product Disclosure Statement for a superannuation product.

(2) However, this Subdivision does not apply to the following financial products:

(a) a superannuation product that is solely an interest in a defined benefits fund;

(b) a superannuation product that is solely a pension product.

7.9.11L Provisions of Part 7.7 of Act that do not apply in relation to superannuation product

For paragraph 951C (1) (b) of the Act, section 942DA of the Act does not apply in relation to a superannuation product.

7.9.11M Provisions of Part 7.9 of Act that do not apply in relation to superannuation product

For paragraph 1020G (1) (b) of the Act, Subdivision D of Division 2 of Part 7.9 of the Act does not apply in relation to a superannuation product.

7.9.11N Modification of Act - superannuation product

For paragraph 1020G (1) (c) of the Act, Part 7.9 of the Act is modified in its application to a superannuation product to which this Subdivision applies as set out in Part 5B of Schedule 10A.

7.9.11O Form and content of Product Disclosure Statement for superannuation product

(1) For modified paragraph 1013C (1) (a) of the Act, a Product Disclosure Statement for a superannuation product to which this Subdivision applies must include the information and statements mentioned in Schedule 10D.

(2) For modified paragraph 1013C (1) (b) of the Act, a Product Disclosure Statement for a superannuation product to which this Subdivision applies must be in the form mentioned in Schedule 10D.

7.9.11P Requirements for references to incorporated information for superannuation product

(1) For subsection 1013C (1B) of the Act, as modified by Part 5B of Schedule 10A, this regulation prescribes requirements for applying, adopting or incorporating, in a Product Disclosure Statement for a superannuation product to which this Subdivision applies, a matter contained in writing.

(2) A Product Disclosure Statement may apply, adopt or incorporate a matter only if a provision of these Regulations requires or permits the matter to be applied, adopted or incorporated by the Statement.

(3) If a Product Disclosure Statement applies, adopts or incorporates a matter:

(a) the matter must be:

(i) in writing; and

(ii) clearly distinguishable from any other matters that are not to be applied, adopted or incorporated; and

(iii) if the superannuation product is not issued to a standard employer-sponsored member within the meaning of the Superannuation Industry (Supervision) Act 1993 - publicly available in a document other than the Statement; and

(b) the responsible person for the Statement must identify the matter by:

(i) including in the Statement a concise description of the matter; and

(ii) ensuring that the reference to the matter is clearly distinguishable from the other contents of the Statement; and

(c) the responsible person for the Statement must:

(i) identify each version of the matter (by including the date on which the version was prepared) so that a person who, at a particular time, is considering a superannuation product can identify the version that is relevant to the superannuation product at that time; and

(ii) state the date on which a version was prepared in a prominent position at or near the front of the version; and

(d) the responsible person for the Statement must ensure that a person who is relying on the Statement is able to have access to:

(i) the document containing the matter; or

(ii) if there is more than 1 version of the document containing the matter - each version;

reasonably easily and reasonably quickly.

(4) The responsible person for the Product Disclosure Statement must also ensure that the Statement includes the statements in the following table relating to the matter, and sets them out in each place at which the matter has been applied, adopted or incorporated.

(5) The responsible person for the Product Disclosure Statement must also ensure that each document mentioned in subregulation (3) includes the statement in the following table relating to the matter.

(6) For the avoidance of doubt, the giving of a Product Disclosure Statement to which this Subdivision applies is taken to be the giving of every matter that is applied, adopted or incorporated in accordance with subregulations (1) to (5).

(7) If the Product Disclosure Statement applies, adopts or incorporates a matter, the information dealing with the matter is taken to have been given to a person on the day on which the person signs the application form accompanying the Statement.

7.9.11Q Retention of copies of Product Disclosure Statement for superannuation product

(1) This regulation applies if:

(a) section 1015B of the Act does not apply to require a Product Disclosure Statement to be lodged with ASIC; and

(b) the Statement is for a superannuation product to which this Subdivision applies.

(2) The responsible person for the Product Disclosure Statement must retain a copy of each version of the Statement that the responsible person issues for a period of 7 years starting on the day on which the version is prepared.

(3) The responsible person for the Product Disclosure Statement must retain a copy of the document from which a matter is applied, adopted or incorporated by the Statement as mentioned in paragraph 7.9.11P (3) (c) for a period of 7 years commencing on the day on which the Statement is prepared.

(4) If a document from which a matter is adopted, applied or incorporated by the Product Disclosure Statement as mentioned in paragraph 7.9.11P (3) (c) is changed in a way that changes the description of, or reference to, the matter, the responsible person for the Statement must retain a copy of the document for a period of 7 years commencing on the day on which the document is changed.

7.9.11R Requirement to provide copy of Product Disclosure Statement for superannuation product free of charge

(1) For paragraph 1015C (5) (a) of the Act, this regulation specifies requirements as to the manner in which a Product Disclosure Statement for a superannuation product to which this Subdivision applies must be given to a person if the person requests a copy of the Statement.

(2) The responsible person for the Product Disclosure Statement must give the person, free of charge:

(a) a copy of the Statement within 8 business days; and

(b) a copy of a matter in writing that is applied, adopted or incorporated by the Statement within 8 business days.

Subdivision 4.2C Content of Product Disclosure Statement for simple managed investment scheme

7.9.11S Application of Subdivision 4.2C

(1) This Subdivision applies to:

(a) a person that is required to prepare a Product Disclosure Statement for a simple managed investment scheme; and

(b) a Product Disclosure Statement for a simple managed investment scheme.

(2) This Subdivision does not apply to the extent that the simple managed investment scheme relates to a financial product (known as a “quoted product”) which is, or is intended to be, traded on a prescribed financial market.

(3) This Subdivision does not apply to the extent that the simple managed investment scheme relates to a financial product (known as a “stapled security”) to which the following requirements apply:

(a) the product consists of interests in 2 or more financial products;

(b) the interests include at least 1 interest in a registered managed investment scheme;

(c) under the terms on which each of the interests is to be traded, the interests must be transferred together;

(d) there are no financial products in the same class as the interests which may be transferred separately.

(4) This Subdivision does not apply to the extent that the simple managed investment scheme is a managed investment scheme that has a constitution that provides that:

(a) a member may direct that an amount of money corresponding to part or all of the amount invested by the member in the scheme be invested in accessible investments; and

(b) the distributions of capital and income from the scheme to the member in relation to the member’s interests in the scheme will be determined by reference to amounts received by the responsible entity or a custodian in relation to the accessible investments acquired in accordance with the direction.

7.9.11T Provisions of Part 7.7 of Act that do not apply in relation to simple managed investment scheme

For paragraph 951C (1) (b) of the Act, section 942DA of the Act does not apply in relation to a simple managed investment scheme to which this Subdivision applies.

7.9.11U Provisions of Part 7.9 of Act that do not apply in relation to simple managed investment scheme

For paragraph 1020G (1) (b) of the Act, Subdivision D of Division 2 of Part 7.9 of the Act does not apply in relation to a simple managed investment scheme to which this Subdivision applies.

7.9.11V Modification of Act - simple managed investment scheme

For paragraph 1020G (1) (c) of the Act, Part 7.9 of the Act is modified in its application to a simple managed investment scheme to which this Subdivision applies as set out in Part 5C of Schedule 10A.

7.9.11W Form and content of Product Disclosure Statement for simple managed investment scheme

(1) For modified paragraph 1013C (1) (a) of the Act, a Product Disclosure Statement for a simple managed investment scheme to which this Subdivision applies must include the information and statements mentioned in Schedule 10E.

(2) For modified paragraph 1013C (1) (b) of the Act, a Product Disclosure Statement for a simple managed investment scheme to which this Subdivision applies must be in the form mentioned in Schedule 10E.

7.9.11X Requirements for references to incorporated information for simple managed investment scheme

(1) For subsection 1013C (1B) of the Act, as modified by Part 5C of Schedule 10A, this regulation prescribes requirements for applying, adopting or incorporating, in a Product Disclosure Statement for a simple managed investment scheme to which this Subdivision applies, a matter contained in writing.

(2) A Statement may apply, adopt or incorporate a matter only if a provision of these Regulations requires or permits the matter to be applied, adopted or incorporated by the Statement.

(3) If a Product Disclosure Statement applies, adopts or incorporates a matter:

(a) the matter must be:

(i) in writing; and

(ii) clearly distinguishable from any other matters that are not applied, adopted or incorporated; and

(iii) publicly available in a document other than the Statement; and

(b) the responsible person for the Statement must identify the matter by:

(i) including in the Statement a concise description of the matter; and

(ii) ensuring that the reference to the matter is clearly distinguishable from the other contents of the Statement; and

(c) the responsible person for the Statement must:

(i) identify each version of the matter (by including the date on which the version was prepared) so that a person who, at a particular time, is considering a simple managed investment scheme to which this Subdivision applies can identify the version that is relevant to the simple managed investment scheme at that time; and

(ii) state the date on which the version was prepared in a prominent position at or near the front of the version; and

(d) the responsible person for the Statement must ensure that a person who is relying on the Statement is able to have access to:

(i) the matter; or

(ii) if there is more than 1 version of the matter - each version;

reasonably easily and reasonably quickly.

(4) The responsible person for the Product Disclosure Statement must also ensure that the Statement includes the statements in the following table relating to the matter, and sets them out in each place at which the matter has been applied, adopted or incorporated.

(5) The responsible person for the Product Disclosure Statement must also ensure that each document mentioned in subregulation (3) includes the statement in the following table relating to the matter.

(6) For the avoidance of doubt:

(a) the giving of a Product Disclosure Statement to which this Subdivision applies is taken to be the giving of every matter that is applied, adopted or incorporated in accordance with subregulations (1) to (5); and

(b) if a document mentioned in subparagraph (3) (a) (iii) refers to more than one PDS, the document:

(i) must include a statement to the effect that the information in the document forms part of the Product Disclosure Statement offered by the responsible entity; but

(ii) is not required to name each Product Disclosure Statement of which it forms part.

(7) If the Product Disclosure Statement applies, adopts or incorporates a matter, the information dealing with the matter is taken to have been given to a person on the day on which the person signs the application form accompanying the Statement.

7.9.11Y Retention of copies of Product Disclosure Statement for simple managed investment scheme

(1) The responsible person for a Product Disclosure Statement for a simple managed investment scheme to which this Subdivision applies must retain a copy of each version of the Statement that the responsible person issues for a period of 7 years starting on the day on which the version is prepared.

(2) The responsible person for the Product Disclosure Statement must retain a copy of the document from which a matter is applied, adopted or incorporated by the Statement as mentioned in paragraph 7.9.11X (3) (c) for a period of 7 years commencing on the day on which the Statement is prepared.

(3) If a document from which a matter is adopted, applied or incorporated by the Product Disclosure Statement as mentioned in paragraph 7.9.11X (3) (c) is changed in a way that changes the description of, or reference to, the matter, the responsible person for the Statement must retain a copy of the document for a period of 7 years commencing on the day on which the document is changed.

7.9.11Z Requirement to provide copy of Product Disclosure Statement for simple managed investment scheme free of charge

(1) For paragraph 1015C (5) (a) of the Act, this regulation specifies requirements as to the manner in which a Product Disclosure Statement for a simple managed investment scheme to which this Subdivision applies must be given to a person if the person requests a copy of the Statement.

(2) The responsible person for the Product Disclosure Statement must give the person, free of charge:

(a) a copy of the Statement within 8 business days; and

(b) a copy of a matter in writing that is applied, adopted or incorporated by the Statement within 8 business days.