Corporations and Other Legislation Amendment (Corporate Collective Investment Vehicle Framework) Regulations 2022 (F2022L00469)

Schedule 2   Simple sub-fund products

Corporations Regulations 2001

10   After Subdivision 4.2C of Division 4 of Part 7.9

Insert:

Subdivision 4.2D - Content of Product Disclosure Statement for simple sub-fund products

7.9.11ZA Application of this Subdivision

(1) This Subdivision applies to:

(a) a person that is required to prepare a Product Disclosure Statement for a simple sub-fund product; and

(b) a Product Disclosure Statement for a simple sub-fund product.

(2) This Subdivision does not apply to the extent that the simple sub-fund product is a financial product (known as a "quoted product") that is, or is intended to be, traded on a prescribed financial market.

(3) This Subdivision does not apply to the extent that the simple sub-fund product relates to a financial product (known as a "stapled security") to which the following requirements apply:

(a) the product consists of interests in 2 or more financial products;

(b) the interests include at least one security in a CCIV;

(c) under the terms on which each of the interests is to be traded, the interests must be transferred together;

(d) there are no financial products in the same class as the interests that may be transferred separately.

(4) This Subdivision does not apply to the extent that the simple sub-fund product is a security in a CCIV (referable to a sub-fund of the CCIV) and the CCIV has a constitution that provides:

(a) that a member of the sub-fund may direct that an amount of money corresponding to part or all of the amount invested by the member in the sub-fund be invested in accessible investments; and

(b) that any distributions to members of the sub-fund will be determined by reference to amounts received by the CCIV in relation to the accessible investments acquired in accordance with the direction.

7.9.11ZB Provisions of Part 7.7 of Act that do not apply in relation to simple sub-fund products

For the purposes of paragraph 951C(1)(b) of the Act, section 942DA of the Act does not apply in relation to a simple sub-fund product to which this Subdivision applies.

7.9.11ZC Provisions of Part 7.9 of Act that do not apply in relation to simple sub-fund products

For the purposes of paragraph 1020G(1)(b) of the Act, Subdivision D of Division 2 of Part 7.9 of the Act does not apply in relation to a simple sub-fund product to which this Subdivision applies.

7.9.11ZD Modification of Act - simple sub-fund products

For the purposes of paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is modified in its application to a simple sub-fund product to which this Subdivision applies as set out in Part 5D of Schedule 10A.

7.9.11ZE Form and content of Product Disclosure Statement for simple sub-fund products

(1) For the purposes of paragraph 1013C(1)(a) of the Act, as modified by Part 5D of Schedule 10A, a Product Disclosure Statement for a simple sub-fund product to which this Subdivision applies must include the statements and information mentioned in Schedule 10F.

(2) For the purposes of paragraph 1013C(1)(b) of the Act, as modified by Part 5D of Schedule 10A, a Product Disclosure Statement for a simple sub-fund product to which this Subdivision applies must be in the form mentioned in Schedule 10F.

7.9.11ZF Requirements for references to incorporated information for simple sub-fund products

(1) For the purposes of subsection 1013C(1D) of the Act, as modified by Part 5D of Schedule 10A, this regulation prescribes requirements for applying, adopting or incorporating, in a Product Disclosure Statement for a simple sub-fund product to which this Subdivision applies, a matter contained in writing.

(2) A Statement may apply, adopt or incorporate a matter only if a provision of these Regulations requires or permits the matter to be applied, adopted or incorporated by the Statement.

(3) If a Product Disclosure Statement applies, adopts or incorporates a matter:

(a) the matter must be:

(i) in writing; and

(ii) clearly distinguishable from any other matters that are not applied, adopted or incorporated; and

(iii) publicly available in a document other than the Statement; and

(b) the responsible person for the Statement must identify the matter by:

(i) including in the Statement a concise description of the matter; and

(ii) ensuring that the reference to the matter is clearly distinguishable from the other contents of the Statement; and

(c) the responsible person for the Statement must:

(i) identify each version of the matter (by including the date on which the version was prepared) so that a person who, at a particular time, is considering a simple sub-fund product to which this Subdivision applies can identify the version that is relevant to the simple sub-fund product at that time; and

(ii) state the date on which the version was prepared in a prominent position at or near the front of the version; and

(d) the responsible person for the Statement must ensure that a person who is relying on the Statement is able to have access to:

(i) the matter; or

(ii) if there is more than one version of the matter - each version;

reasonably easily and reasonably quickly.

(4) The responsible person for the Product Disclosure Statement must also ensure that the Statement includes the statements in the following table relating to the matter, and sets them out in each place at which the matter has been applied, adopted or incorporated.

(5) The responsible person for the Product Disclosure Statement must also ensure that each document mentioned in subregulation (3) includes the statement in the following table relating to the matter.

(6) For the avoidance of doubt:

(a) the giving of a Product Disclosure Statement to which this Subdivision applies is taken to be the giving of every matter that is applied, adopted or incorporated in accordance with subregulations (1) to (5); and

(b) if a document mentioned in subparagraph (3)(a)(iii) refers to more than one Product Disclosure Statement, the document:

(i) must include a statement to the effect that the information in the document forms part of the Product Disclosure Statement offered by the responsible person; but

(ii) is not required to name each Product Disclosure Statement of which it forms part.

(7) If the Product Disclosure Statement applies, adopts or incorporates a matter, the information dealing with the matter is taken to have been given to a person on the day on which the product is acquired.

7.9.11ZG Retention of copies of Product Disclosure Statement for simple sub-fund products

(1) The responsible person for a Product Disclosure Statement for a simple sub-fund product to which this Subdivision applies must retain a copy of each version of the Statement that the responsible person issues for a period of 7 years starting on the day on which the version is prepared.

(2) The responsible person for the Product Disclosure Statement must retain a copy of the document from which a matter is applied, adopted or incorporated by the Statement as mentioned in paragraph 7.9.11ZF(3)(c) for a period of 7 years commencing on the day on which the Statement is prepared.

(3) If a document from which a matter is adopted, applied or incorporated by the Product Disclosure Statement as mentioned in paragraph 7.9.11ZF(3)(c) is changed in a way that changes the description of, or reference to, the matter, the responsible person for the Statement must retain a copy of the document for a period of 7 years commencing on the day on which the document is changed.

7.9.11ZH Requirement to provide copy of Product Disclosure Statement for simple sub-fund products free of charge

(1) For the purposes of paragraph 1015C(5)(a) of the Act, this regulation specifies requirements as to the manner in which a Product Disclosure Statement for a simple sub-fund product to which this Subdivision applies must be given to a person if the person requests a copy of the Statement.

(2) The responsible person for the Product Disclosure Statement must give the person, free of charge:

(a) a copy of the Statement within 8 business days; and

(b) a copy of a matter in writing that is applied, adopted or incorporated by the Statement within 8 business days.