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 5A 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: Section 1019J 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.
This section applies if:
(a) the offer document by which an offer to which this Division applies is made states the market value of the financial product to which the offer relates as at the date of the offer; and
(b) while the offer remains open, there is an increase or decrease in the market value of the product when compared to:
(i) unless subparagraph (ii) applies - the market value (the currently stated value ) stated as mentioned in paragraph (a); or
(ii) if this section has previously applied in relation to the offer and one or more supplementary offer documents have been sent to the offeree - the market value (the currently stated value ) stated as mentioned in paragraph (3)(c) in the supplementary offer document most recently sent to the offeree; and
(c) the increase or decrease, expressed as a percentage of the currently stated value, exceeds the percentage specified in the regulations [ sic ] for the purposes of this paragraph.
1019J(2)
The offeror must, within 10 business days of this section applying because of a particular increase or decrease in value:
(a) withdraw the offer by sending a withdrawal document, in printed or electronic form, to the offeree in accordance with paragraphs 1019E(1)(a) and (b):
(i) that identifies the offeror and that is dated; and
(ii) that contains a statement to the effect that the offer is withdrawn because of a change in the market value of the product, and that withdrawal for this reason is permitted even within 1 month of the date of offer; or
(b) send a supplementary offer document (see subsection (3)) in printed or electronic form to the offeree in accordance with paragraphs 1019E(1)(a) and (b).
Nothing in section 1019G affects the effectiveness of a withdrawal of the offer under paragraph (a) of this subsection.
1019J(3)
A supplementary offer document must:
(a) identify the offer to which it relates; and
(b) be dated; and
(c) state the market value of the financial product to which the offer relates as at that date; and
(d) state the price that was stated in the offer document as required by paragraph 1019I(2)(a) , and contain a statement to the effect that this is still the price at which the offeror wishes to purchase the product and that the terms of the offer remain unchanged; and
(e) contain a statement to the effect that the document has been prepared because the market value of the product has changed.
1019J(4)
A supplementary offer document must be worded and presented in a clear, concise and effective manner.
1019J(5)
In this section, a reference to stating a market value of a financial product includes a reference to purporting to state the market value of the product.
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