Corporations Regulations 2001
CCH Note: Schedule 10C is modified by the ASIC Corporations (Removing Barriers to Electronic Disclosure) Instrument 2015/649.
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6 6 Contents of section 4 (What is a margin call?)Section 4 of the Product Disclosure Statement for a standard margin lending facility must include:
(a) if the terms of the standard margin lending facility include a margin call:
(i) an explanation of what a margin call is; and
(ii) an explanation of when there will be a margin call in response to changes in the market; and
(iii) an explanation of when there will be a margin call at the discretion of the provider of the standard margin lending facility; and
(iv) at least 1 example of how a margin call works, including:
(A) the impact of breaching the loan-to-value ratio ( LVR ) for the standard margin lending facility; and
(B) how to adjust the LVR back to the required level for the standard margin lending facility; and
(C) how the buffer (if any) for the standard margin lending facility operates; and
(v) a description of how a margin call can be dealt with by the borrower for the standard margin lending facility; and
(vi) a statement that if there is a margin call, the provider of the standard margin lending facility will notify the borrower for the standard margin lending facility, or the borrower ' s financial advisor, that the margin call has occurred; and
(vii) a statement that the borrower for the standard margin lending facility must be contactable at all times in case of a margin call; and
(b) if the terms of the standard margin lending facility do not include a margin call, a statement to that effect.
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