Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1021b:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1021B (pt 1/2)
Character Range: 4489891–4492869

1021B  Meaning of defective and disclosure document or statement
 (1) In this Subdivision:
defective, in relation to a disclosure document or statement, means:
 (a) there is a misleading or deceptive statement in the disclosure document or statement; or
 (b) if it is a Product Disclosure Statement—there is an omission from the Product Disclosure Statement of material required by section 1013C, other than material required by section 1013B or 1013G; or
 (c) if it is a Supplementary Product Disclosure Statement that is given for the purposes of section 1014E—there is an omission from the Supplementary Product Disclosure Statement of material required by that section; or
 (d) if it is information required by paragraph 1012G(3)(a)—there is an omission from the information of material required by that paragraph;
being a statement, or an omission, that is or would be materially adverse from the point of view of a reasonable person considering whether to proceed to acquire the financial product concerned.
Note: In determining whether a Product Disclosure Statement is defective, the effect of section 1014D must be taken into account (section 1014D takes information and statements in a Supplementary Product Disclosure Statement to be included in the Product Disclosure Statement it supplements).
disclosure document or statement means:
 (a) a Product Disclosure Statement; or
 (b) a Supplementary Product Disclosure Statement; or
 (c) information required by paragraph 1012G(3)(a).
 (1A) For the avoidance of doubt, if section 1012J (information must be up to date) is not complied with in relation to a Product Disclosure Statement, then, for the purposes of the definition of defective in subsection (1):
 (a) if the circumstance constituting the non‑compliance is that particular information included in the Product Disclosure Statement is not as up to date as section 1012J requires it to be—the information so included constitutes a misleading statement in the Product Disclosure Statement; and
 (b) if the circumstance constituting the non‑compliance is a failure to include particular information that was not previously required to be included in the Product Disclosure Statement—the failure to include the information constitutes an omission from the Statement of material required by section 1013C.
Note 1: The effect of section 1014D (information in a Supplementary Product Disclosure Statement is taken to be contained in the Product Disclosure Statement it supplements) must be taken into account in determining whether section 1012J is complied with in relation to a Product Disclosure Statement.
Note 2: Whether the inclusion of out of date information, or the failure to include information, results in the Product Disclosure Statement being defective as defined in subsection (1) depends on whether the materiality test set out in that definition is satisfied.
 (2) In this Subdivision, a reference (including in the definitions in subsection (1)) to