Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1012e:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1012E (pt 1/3)
Character Range: 4297424–4299989

1012E  Small scale offerings of managed investment and other prescribed financial products (20 issues or sales in 12 months)
 (1) This section applies only to financial products that are:
 (a) managed investment products; or
 (b) financial products of a kind prescribed by regulations made for the purposes of this paragraph.
 (2) Personal offers of financial products do not need a Product Disclosure Statement under this Part if:
 (a) all of the financial products are issued by the same person (the issuer); and
 (b) none of the offers results in a breach of the 20 purchasers ceiling (see subsections (6) and (7)); and
 (c) none of the offers results in a breach of the $2 million ceiling (see subsections (6) and (7)).
 (3) Subsection (2) does not apply to an offer to which subsection 1012C(6) (sale amounting to indirect issue) or (8) (sale amounting to indirect sale by controller) applies.
Note: Under section 1012K, ASIC may make a determination aggregating the transactions of bodies that ASIC considers to be closely related.
 (4) If subsection (2) applies to an offer of a financial product, a recommendation to a person to acquire a financial product in response to a personal offer of that kind does not need a Product Disclosure Statement under this Part.
 (5) For the purposes of subsections (2) and (4), a personal offer is one that:
 (a) may only be accepted by the person to whom it is made; and
 (b) is made to a person who is likely to be interested in the offer, having regard to:
 (i) previous contact between the person making the offer and that person; or
 (ii) some professional or other connection between the person making the offer and that person; or
 (iii) statements or actions by that person that indicate that they are interested in offers of that kind.
 (6) An offer to issue, or arrange for the issue of, a financial product:
 (a) results in a breach of the 20 purchasers ceiling if it results in the number of people to whom the issuer has issued financial products exceeding 20 in any 12 month period; and
 (b) results in a breach of the $2 million ceiling if it results in the amount raised by the issuer from issuing financial products exceeding $2 million in any 12 month period.
 (7) An offer by a person to sell a financial product:
 (a) results in a breach of the 20 purchasers ceiling if it results in the number of people to whom the person sells financial products issued by the issuer of that financial product exceeding 20 in any 12 month period; and
 (b) results in a breach of the $2 million ceiling if it results