Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.9 - FINANCIAL PRODUCT DISCLOSURE AND OTHER PROVISIONS RELATING TO ISSUE, SALE AND PURCHASE OF FINANCIAL PRODUCTS  

Division 2 - Product Disclosure Statements  

Subdivision B - Requirement for a Product Disclosure Statement to be given  

SECTION 1012B   OBLIGATION TO GIVE PRODUCT DISCLOSURE STATEMENT - SITUATIONS RELATED TO ISSUE OF FINANCIAL PRODUCTS  

Section sets out issue situations in which Product Disclosure Statement required

1012B(1)    
This section sets out situations in which:

(a)    an offer relating to the issue of a financial product; or

(b)    the issue of a financial product;

gives rise to an obligation on a regulated person to give another person a Product Disclosure Statement for the product.

1012B(2)    

For the purposes of this Act:

(a)    each of the situations is an issue situation ; and

(b)    the relevant conduct for that situation is the conduct by the regulated person that gives rise to the obligation to give the Product Disclosure Statement; and

(c)    the client for that situation is the person to whom the financial product is to be or is issued.

The main issue situations

1012B(3)    
A regulated person must give a person a Product Disclosure Statement for a financial product if:

(a)    the regulated person:

(i) offers to issue the financial product to the person; or

(ii) offers to arrange for the issue of the financial product to the person; or

(iii) issues the financial product to the person in circumstances in which there are reasonable grounds to believe that the person has not been given a Product Disclosure Statement for the product; and

(b)    the financial product is, or is to be, issued to the person as a retail client.

The Product Disclosure Statement must be given at or before the time when the regulated person makes the offer, or issues the financial product, to the person and must be given in accordance with this Division.

Note: If a Product Disclosure Statement is given when the offer is made, it will not need to be given again when the product is issued to the person (see subsection 1012D(1) ) unless the Product Disclosure Statement that was given is no longer up to date.

Receiving offer to acquire financial product

1012B(4)    
A regulated person must give a person a Product Disclosure Statement for a financial product if:

(a)    the person makes an offer to the regulated person to acquire the financial product; and

(b)    the person would acquire the financial product by way of the issue of the product to the person (rather than the transfer of the product to the person); and

(c)    the financial product is to be issued to the person as a retail client.

The Product Disclosure Statement must be given to the person before the person becomes bound by a legal obligation to acquire the financial product pursuant to the offer and must be given in accordance with this Division.

This section has effect subject to other provisions

1012B(5)    

This section does not apply to a regulated person for an issue situation if:

(a)    one or more of sections 1012D , 1012DAA , 1012E , 1012F , 1012G , 1012GA or 1014E apply to a regulated person for that issue 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 issue situation.

Civil liability

1012B(6)    

A person contravenes this subsection if the person contravenes this section.

Note: This subsection is a civil penalty provision (see section 1317E ).