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 3 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.
If: (a) a person (the holder ) of a financial product acquired the financial product as a retail client (whether or not it was acquired from the issuer); and (b) the product is:
(i) a managed investment product; or
(ia) a foreign passport fund product; or
(ii) a superannuation product; or
(iii) an RSA; or
(iiia) (Repealed)
(iv) an investment life insurance product; or
(v) a deposit product; or
(va) a margin lending facility; or
(c) either:
(vi) specified in regulations made for the purposes of this paragraph; and
(i) the financial product was offered in this jurisdiction; or
(ii) the holder applied for the financial product in this jurisdiction;
the issuer of the product must, in accordance with subsections (2) to (6) , give the holder a periodic statement for each reporting period during which the holder holds the product.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).
1017D(2)
The following provisions apply in relation to reporting periods: (a) each reporting period lasts for a period, not exceeding 1 year, determined by the issuer; (b) the first reporting period starts when the holder acquired the product; (c) each subsequent reporting period starts at the end of the preceding reporting period; (d) if the holder ceases to hold the product, the period starting at the end of the preceding reporting period and ending when the holder ceases to hold the product is a reporting period.
[ CCH Note: For substituted s 1017D(2)(a), see Corporations Regulations Schedule 10A, Part 16 - Modifications relating to reporting periods, item 16.1]
1017D(3)
The periodic statement must be given as soon as practicable after, and in any event within 6 months after, the end of the reporting period to which it relates.
[ CCH Note: For s 1017D(3A) - (3D), see Corporations Regulations Schedule 10A, Part 12 - Modifications relating to information when member leaves a fund, item 12.1]
1017D(4)
The periodic statement must give the holder the information that the issuer reasonably believes the holder needs to understand his or her investment in the financial product.
1017D(5)
The periodic statement must include the following if they are relevant to the financial product: (a) opening and closing balances for the reporting period; (b) the termination value of the investment at the end of the reporting period (to the extent to which it is reasonably practicable to calculate that value for the investment or a component of the investment); (c) details of transactions in relation to the product during the reporting period as required by regulations made for the purposes of this paragraph; (d) any increases in contributions in relation to the financial product by the holder or another person during the reporting period; (e) return on investment during the reporting period (on an individual basis if reasonably practicable to do so and otherwise on a fund basis); (f) details of any change in circumstances affecting the investment that has not been notified since the previous periodic statement; (g) details prescribed by regulations made for the purposes of this paragraph.
1017D(5A)
Unless in accordance with the regulations: (a) for information to be disclosed in accordance with paragraphs (5)(a) , (b) , (c) , (d) and (e) , any amounts are to be stated in dollars; and (b) for any other information in relation to amounts paid by the holder of the financial product during the period, any amounts are to be stated in dollars.
1017D(6)
The periodic statement must be given in one of the following ways: (a) in writing; or (b) electronically; or (c) in a way specified in the regulations.
1017D(7)
The periodic statement need not be given if the issuer has already given the holder all the information that would be included in the periodic statement if it were to be given.
Note: A defendant bears an evidential burden in relation to the matters in this subsection.
[ CCH Note: For s 1017D(8) - (17), see Corporations Regulations Schedule 10A, Part 7 - Modifications relating to life pensioners, members subject to compulsory protection of small amounts and members with small amounts that are expected to grow quickly, item 7.1 and Part 8 - Modifications relating to periodic statements for RSA providers, item 8.1. For s 1017D(8) and (9), see Corporations Regulations Schedule 10A, Part 13 - Modifications relating to exceptions to exit reporting period provisions, item 13.1. For s 1017D(8) - (10), see Corporations Regulations Schedule 10A, Part 14 - Modifications relating to obligation to give information about financial products, item 14.3]
Modifying legislative instruments: Section 1017D is modified by the following legislative instruments that commenced on or after 1 January 2022: the ASIC Corporations (In-use Notices for Employer-sponsored Superannuation and Superannuation Dashboards) Instrument 2022/496; 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; 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 (Periodic Statement Relief for Quoted Securities) Instrument 2024/14.
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.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.