Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1012e:p2
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1012E (pt 2/3)
Character Range: 4299772–4302422

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 in the amount raised by the person from selling financial products issued by the issuer of that financial product exceeding $2 million in any 12 month period.
 (8) In counting issues and sales of the financial products issued by the issuer, and the amount raised from issues and sales, for the purposes of subsection (2), disregard issues and sales that result from offers that:
 (a) do not need a Product Disclosure Statement (otherwise than because of this section); or
 (b) are made under a Product Disclosure Statement.
Note 1: Also see provisions on restrictions on advertising (section 1018A) and the anti‑hawking provisions in section 992A.
Note 2: Issues and sales that result from offers that are eligible to be made under Division 1A of Part 7.12 (Employee share schemes) are also disregarded for the purposes of subsection (2): see subsection 1100ZC(4).
 (9) In counting issues and sales of the financial products issued by the issuer, and the amount raised from issues and sales, for the purposes of subsection (2), disregard any issues and sales made by a body if:
 (a) the body was a managed investment scheme (but not a registered scheme) at the time that the offer of interests in the scheme that resulted in the issues or sales was made; and
 (b) the body became a registered scheme within 12 months after that offer was made; and
 (c) the offer would not have required a Product Disclosure Statement (otherwise than because of this section) if the managed investment scheme had been a registered scheme at the time that the offer was made.
 (10) In working out the amount of money raised by the issuer from issuing financial products, include the following:
 (a) the amount payable for the financial products at the time when they are issued;
 (b) if the financial product is an option—any amount payable on the exercise of the option;
 (c) if the financial products carry a right to convert the financial product into other financial products—any amount payable on the exercise of that right.
 (11) If a person relies on subsection (2) to make offers of financial products without a Product Disclosure Statement under this Part, the person must not issue, arrange for the issue of, or transfer, financial products without a Product Disclosure Statement under this Part if the issue or transfer would result in a breach of the 20 purchasers ceiling or the $2 million ceiling (see subsections (6), (7), (8), (9) and