Corporations Amendment Regulations 2003 (No. 8) (282 of 2003)

Schedule 1   Amendments commencing on gazettal

[12]   After regulation 7.9.07D

insert in Division 2C

7.9.07E Product Disclosure Statement not required if offer of financial product is declined

For paragraph 1020G (1) (c) of the Act, section 1012D of the Act is modified by adding before subsection 1012D (10):

'(9J) In an issue situation or sale situation, the regulated person does not have to give the client a Product Disclosure Statement for a financial product if:

(a) the situation is an offer to issue or sell the financial product; and

(b) the client informs the regulated person, in the course of the contact during which the offer is made, that the client does not intend to acquire the financial product; and

(c) no issue or sale results from the offer.

(9K) For paragraph (9J) (c), the client must inform the regulated person explicitly but may inform the regulated person orally or in any other way.'.

7.9.07F Product Disclosure Statement not required if the client is not contactable

For paragraph 1020G (1) (c) of the Act, section 1012D of the Act is modified by adding before subsection 1012D (10):

'(9L) In an issue situation, the regulated person does not have to give the client a Product Disclosure Statement, if:

(a) the regulated person has not given the client a Product Disclosure Statement because the regulated person did not need to give a Product Disclosure Statement at or before the time when it would otherwise be required to be given because of the operation of section 1012F or 1012G of the Act, regulation 7.9.04 or Part 17 of Schedule 10A; and

(b) either:

(i) the regulated person:

(A) has an address for the client; and

(B) is satisfied, on reasonable grounds that the address is incorrect; and

(C) has taken reasonable steps to locate the client but is unable to do so; or

(ii) the regulated person:

(A) does not have an address for the client; and

(B) is unable to obtain an address for the client; and

(C) has taken reasonable steps to locate the client but has been unable to do so.

(9M) If a regulated person does not give a client a Product Disclosure Statement in reliance on subsection (9L), and the regulated person becomes aware of the address or location of the client, the regulated person must give the client a Product Disclosure Statement as soon as practicable.'.