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 4 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 (Share and Interest Purchase Plans) Instrument 2019/547; 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: Section 1018A 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 (Share and Interest Purchase Plans) Instrument 2019/547; 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: For substituted heading to s 1018A, see Corporations Regulations Schedule 10A, Part 19 - Modifications for carbon units, Australian carbon credit units and eligible international emissions units, item 19.12]
Advertisements and promotional material must identify issuer (or issuer and seller) and refer to Product Disclosure Statement
1018A(1)
Subject to this section, if a particular financial product is available for acquisition by persons as retail clients (whether or not it is also available for acquisition by persons as wholesale clients) by way of issue, or pursuant to sale offers to which section 1012C applies or will apply, a person must only: (a) advertise the product; or (b) publish a statement that is reasonably likely to induce people to acquire the product;
if the advertisement or statement:
(c) identifies:
(i) if the product is available by way of issue - the issuer of the product; or
(ca) in a case where Part 7.8A requires a target market determination be made for the product - describes the target market for the product or specifies where the determination is available; and (d) indicates that a Product Disclosure Statement for the product is available and where it can be obtained; and (e) indicates that a person should consider the Product Disclosure Statement in deciding whether to acquire, or to continue to hold, the product.
(ii) if the product is available pursuant to sale offers to which section 1012C applies or will apply - the issuer of the product and the seller of the product; and
Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).
[ CCH Note: For modified s 1018A(1)(e), see Corporations Regulations Schedule 10BA - Modifications of the Act relating to short-form product disclosure statements, Part 3, item 3.4]
[ CCH Note: For modified s 1018A(1), see Corporations Regulations Schedule 10A, Part 19 - Modifications for carbon units, Australian carbon credit units and eligible international emissions units, items 19.13 to 19.16]
1018A(2)
Subject to this section, if a particular financial product, or proposed financial product, is not available for acquisition by persons as retail clients but it is reasonably likely that the product will become so available (whether or not it is, or will also become, available for acquisition by persons as wholesale clients) by way of issue, or pursuant to sale offers to which section 1012C will apply, a person must only: (a) advertise the product; or (b) publish a statement that is reasonably likely to induce people to acquire the product;
if the advertisement or statement:
(c) identifies:
(i) if the product is likely to be so available by way of issue - the issuer of the product; or
(ca) in a case where Part 7.8A requires a target market determination be made in relation to the product - describes the target market or specifies where the description is available; and (d) indicates that a Product Disclosure Statement for the product will be made available when the product is released or otherwise becomes available; and (e) indicates when and where the Product Disclosure Statement is expected to be made available; and (f) indicates that a person should consider the Product Disclosure Statement in deciding whether to acquire, or continue to hold, the product.
(ii) if the product is likely to be so available pursuant to sale offers to which section 1012C will apply - the issuer of the product and the seller of the product; and
Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1) ).
Note 2: Subsection (2) has an extended operation in relation to recognised offers under Chapter 8 (see subsection 1200L(4) ).
[ CCH Note: For modified s 1018A(2)(f), see Corporations Regulations Schedule 10BA - Modifications of the Act relating to short-form product disclosure statements, Part 3, item 3.5]
[ CCH Note: For modified s 1018A(2), see Corporations Regulations Schedule 10A, Part 19 - Modifications for carbon units, Australian carbon credit units and eligible international emissions units, items 19.17 to 19.19]
Distribution of disclosure document
1018A(3)
A person may distribute a Product Disclosure Statement without contravening subsection (1) or (2). This does not apply if an order under section 1020E is in force in relation to the product.
Note 1: A defendant bears an evidential burden in relation to the matters in this section. See subsection 13.3(3) of the Criminal Code .
Note 2: Subsection (3) has an extended operation in relation to recognised offers under Chapter 8 (see subsection 1200L(5) ).
[ CCH Note: For modified s 1018A(3), see Corporations Regulations Schedule 10BA - Modifications of the Act relating to short-form product disclosure statements, Part 3, item 3.6]
[ CCH Note: For modified s 1018A(3), see Corporations Regulations Schedule 10A, Part 19 - Modifications for carbon units, Australian carbon credit units and eligible international emissions units, item 19.20]
General exceptions
1018A(4)
An advertisement or publication does not contravene subsection (1) or (2) if it: (a) relates to a financial product that is able to be traded on a financial market and consists of a notice or report by the issuer of the product, or one of its officers, about its affairs to the market operator; or (b) consists solely of a notice or report of a general meeting of the issuer; or (c) consists solely of a report about the issuer that is published by the issuer and:
(i) does not contain information that materially affects affairs of the issuer, other than information previously made available in a Product Disclosure Statement that has been distributed, a disclosure document that has been lodged with ASIC, a CSF offer document that has been published on a platform of a CSF intermediary, an annual report or a notice or report referred to in paragraph (a) or (b); and
(d) is a news report, or is genuine comment, in the media relating to:
(ii) does not refer (whether directly or indirectly) to the offer of the financial product; or
(i) a Product Disclosure Statement that has been distributed, a disclosure document that has been lodged with ASIC or a CSF offer document that has been published on a platform of a CSF intermediary; or
(ii) information contained in such a Statement or document; or
(e) is a report about the financial products of the issuer published by someone who is not:
(iii) a notice or report covered by paragraph (a), (b) or (c); or
(i) the issuer; or
(ii) acting at the instigation of, or by arrangement with, the issuer; or
(iii) a director of the issuer; or
(iv) a person who has an interest in the success of the issue or sale of the financial product.
Paragraphs (d) and (e) do not apply if anyone gives consideration or another benefit for publishing the report.
Note: A defendant bears an evidential burden in relation to the matters in this section. See subsection 13.3(3) of the Criminal Code .
[ CCH Note: For modified s 1018A(4)(d)(i), see Corporations Regulations Schedule 10BA - Modifications of the Act relating to short-form product disclosure statements, Part 3, item 3.7]
[ CCH Note: For modified s 1018A(4), see Corporations Regulations Schedule 10A, Part 19 - Modifications for carbon units, Australian carbon credit units and eligible international emissions units, items 19.21 and 19.22]
[ CCH Note: S 1018A(4) will be amended by No 69 of 2020, s 3, Sch 1[1184], by substituting " the Registrar " for " ASIC " in para (c)(i) and (d)(i) (effective 1 July 2026 or a day or days to be fixed by Proclamation).]
Liability of publishers
1018A(5)
A person does not contravene subsection (1) or (2) by publishing an advertisement or statement if the person: (a) publishes it in the ordinary course of a media business; and (b) did not know, and had no reason to suspect, that its publication would amount to a contravention of a provision of this section.
Note: A defendant bears an evidential burden in relation to the matters in this section. See subsection 13.3(3) of the Criminal Code .
Meaning of media
1018A(6)
For the purposes of this section, the media consists of: (a) newspapers and magazines; and (b) radio and television broadcasting services; and (c) electronic services (including services provided through the internet) that:
(i) are operated on a commercial basis; and
(ii) are similar to newspapers, magazines or radio or television broadcasts.
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