Document ID: chunk:federal_register_of_legislation:F2015L01473:body:0:p3
Version: federal_register_of_legislation:F2015L01473
Segment Type: other
Provision Reference: 
Character Range: 5002–7735

authorised to carry on banking business in Australia, or is supervised by APRA.

               Example 2: If the offshore banking unit concerned is an ADI, the word or expression must not be used in such a way as to represent or suggest that transactions which the offshore banking unit undertakes in the course of its offshore banking business constitute deposit-taking, or some other kind of banking business within the meaning of the Act, where this is not the case.

Conditions applying to an offshore banking unit that is not an ADI

   4. If the offshore banking unit issues, or arranges (whether as an agent, broker, trustee or in any other capacity) for another person to issue, an investment product to an investor, the offshore banking unit must ensure that a consumer warning is given to the investor in the following manner:
       (a) if, before the investment product is issued to the investor, information relating to the investment product is given to the investor in one or more paper documents (whether or not such information is also given to the investor in another form) – the warning must be clearly and prominently set out in one of those documents;
       (b)  if, before the investment product is issued to the investor, information relating to the investment product is given to the investor in one or more electronic communications (whether or not such information is also given to the investor in another form) – the warning must be clearly and prominently set out in one of those electronic communications;
       (c)  in any other case – the warning must be clearly and prominently set out in a paper document or electronic communication that is given to the investor before the investment product is issued to the investor.

   5. The consumer warning only has to be given where:
       (a) the offshore banking unit is a resident; or
       (b)  the offshore banking unit is a non-resident and the conduct of the offshore banking unit in issuing, or arranging for the issuing of, the investment product to the investor is done in carrying on business in Australia.

   6. The consumer warning does not have to be given in any of the following circumstances:
        (a) where the investor is a related body corporate of the offshore banking unit;
        (b) where the investor is a professional investor;
        (c) where the investment product is provided for use by or in a business that is not a small business;
        (d) where no consideration is provided (whether directly or indirectly) for the issue of the investment product; or
        (e) where the investor has previously been given the consumer warning in the manner specified in condition 3 in relation to an investment product which