Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p3
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 3/43)
Character Range: 1271769–1274642

acquiring financial product under defective Product Disclosure Statement: superannuation and RSAs
 (1) This regulation applies to a financial product:
 (a) that is:
 (i) a superannuation product to which requirements of the SIS Act relating to preservation rules and cashing restrictions apply; or
 (ii) an RSA to which requirements of the RSA Regulations relating to preservation rules and cashing restrictions apply; and
 (b) that has been issued or sold in contravention of section 1016E of the Act.
 (2) For subsection 1016F(3) of the Act, to exercise a right of return for the financial product in circumstances in which the moneys paid to acquire the financial product are subject to the preservation rules and cashing restrictions, the client must:
 (a) nominate a superannuation entity or RSA into which the monies subject to the preservation rules and cashing restrictions, and to which preservation conditions apply, are to be repaid; and
 (b) make the nomination not later than 1 month after notifying the responsible person of the right to exercise the right of return.
 (2A) The right of return is taken to have been exercised only on receipt by the responsible person of the nomination.
 (3) The client must notify the responsible person in writing or by electronic means.
 (4) For subsection 1016F(6) of the Act, the responsible person must repay the monies as directed.
 (5) For subsection 1019B(7) of the Act, if:
 (a) a financial product mentioned in this regulation is subject to the nomination of a further superannuation entity or RSA; and
 (b) the application in relation to the financial product is not accepted by the nominated superannuation entity or RSA;
the responsible person may rollover or transfer the client's benefits to an eligible rollover fund.

7.9.14A  Treatment of arrangements under which a person can instruct another person to acquire a financial product
  For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies as if the definition of instruction in subsection 1012IA(1) of the Act were modified by adding at the end ', including a direction to follow an investment strategy mentioned in paragraph 52(4)(a) of the Superannuation Industry (Supervision) Act 1993'.

Subdivision 4.4—Product information for certain insurance products

7.9.14B  Product information
  For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is modified in its application in relation to financial products as if:
 (a) that Part applied to a financial product mentioned in paragraph 7.1.14(2)(d); and
 (b) the following section were inserted after section 1019B of the Act:
'1019C  Information about certain vehicle insurance
 (1) This section applies in relation to the issue of a financial product mentioned in paragraph 7.1.14(2)(d) of the Corporations Regulations 2001.
 (2) The product issuer of the financial product must, as soon as