Corporations Act 2001
Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .
View history note
Hide history noteCCH note - modifying legislative instruments: The application of Pt 7.9 is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (Periodic Statement Relief for Quoted Securities) Instrument 2024/14; the ASIC Corporations (mFund) Instrument 2024/18; and the ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669 (as amended by ASIC Corporations (Amendment) Instrument 2024/554).
The application of Pt 7.9 is also modified by the ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070; and Class Order 14/1262: Relief for 31 Day Notice Term Deposits.
For other legislative instruments or class orders before 1 January 2022 that affect the application of Pt 7.9, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
CCH Note: Division 2 is modified by the ASIC Corporations (Foreign Small-Scale Offers) Instrument 2015/362; the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716; the ASIC Corporations (Removing Barriers to Electronic Disclosure) Instrument 2015/649; the ASIC Corporations (Shorter PDS and Delivery of Accessible Financial Products Disclosure by Platform Operators and Superannuation Trustees) Instrument 2022/497; the ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/668; and the ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669.
CCH Note: Subdivision B is modified by the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716; the ASIC Corporations (Removing Barriers to Electronic Disclosure) Instrument 2015/649; the ASIC Corporations (Shorter PDS and Delivery of Accessible Financial Products Disclosure by Platform Operators and Superannuation Trustees) Instrument 2022/497; the ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/668; the ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669; and the ASIC Corporations (Discretions for Setting the Issue Price and Withdrawal Price of Interests in Managed Investment Schemes) Instrument 2023/693.
CCH note: This provision is modified by legislative instruments. See the CCH note at the end of the provision for details.
Section sets out recommendation situation in which Product Disclosure Statement required
1012A(1)
This section sets out the situations in which giving financial product advice that consists of, or includes, a recommendation to acquire a financial product gives rise to an obligation on a regulated person to give another person a Product Disclosure Statement for the product.
1012A(2)
For the purposes of this Act: (a) each of the situations is a recommendation situation ; and (b) the relevant conduct for that situation is the making of the recommendation; and (c) the client for that situation is the person to whom the advice is provided.
Personal advice recommending a particular financial product
1012A(3)
A regulated person must give a person a Product Disclosure Statement for a financial product if: (a) the regulated person provides financial product advice to the person that consists of, or includes, a recommendation that the person acquire the financial product; and (b) the person would acquire the financial product by way of:
(i) the issue of the product to the person (rather than the transfer of the product to the person); or
(c) the financial product advice is provided to the client as a retail client; and (d) the financial product advice is personal advice to the client.
(ii) the transfer of the product to the person in circumstances described in subsection 1012C(5) , (6) or (8) (secondary sales that require a Product Disclosure Statement); and
The Product Disclosure Statement must be given at or before the time when the regulated person provides the advice and must be given in accordance with this Division.
This section has effect subject to other provisions
1012A(4)
This section does not apply to a regulated person for a recommendation situation if: (a) one or more of sections 1012D , 1012DA , 1012E , 1012F , 1012G or 1014E apply to a regulated person for that recommendation situation; and (b) for each of those sections that so applies - the regulated person complies with the requirements (if any) in that section for that recommendation situation.
Civil liability
1012A(5)
A person contravenes this subsection if the person contravenes this section.
Note: This subsection is a civil penalty provision (see section 1317E ).
CCH Note - modifying legislative instruments: Section 1012A is modified by the following legislative instruments that commenced on or after 1 January 2022: the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716; the ASIC Corporations (Removing Barriers to Electronic Disclosure) Instrument 2015/649; the ASIC Corporations (Top-up Product Disclosure Statements Relief) Instrument 2016/1054; the ASIC Corporations (Shorter PDS and Delivery of Accessible Financial Products Disclosure by Platform Operators and Superannuation Trustees) Instrument 2022/497; the ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/668; the ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669 (as amended by ASIC Corporations (Amendment) Instrument 2024/554); the ASIC Corporations (Discretions for Setting the Issue Price and Withdrawal Price of Interests in Managed Investment Schemes) Instrument 2023/693; and the ASIC Corporations (On-Sale Disclosure Relief for Scrip Bids and Schemes of Arrangement) Instrument 2023/686.
For modifying legislative instruments or class orders before 1 January 2022, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
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