Document ID: chunk:federal_register_of_legislation:C2005C00498:clause:1_1012c:p1
Version: federal_register_of_legislation:C2005C00498
Segment Type: clause
Provision Reference: sch 1 cl 1012C (pt 1/3)
Character Range: 513715–516323

1012C  Obligation to give Product Disclosure Statement—offers related to sale of financial products

Section sets out sale situations in which Product Disclosure Statement required

 (1) This section sets out situations in which an offer relating to the sale of a financial product gives rise to an obligation on a regulated person to give another person a Product Disclosure Statement for the product.

 (2) For the purposes of this Division:
 (a) each of the situations is a sale situation; and
 (b) the relevant conduct for that situation is the offer; and
 (c) the client for that situation is the person to whom the product is to be sold.

Sale offers that require a Product Disclosure Statement

 (3) A regulated person must give a person a Product Disclosure Statement for a financial product if:
 (a) the regulated person offers to sell the financial product to the person; and
 (b) a sale of the product to the person pursuant to the offer would take place in circumstances covered by subsection (5), (6) or (8); and
 (c) the financial product is to be sold to the person as a retail client.
The Product Disclosure Statement must be given at or before the time when the regulated person makes the offer and must be given in accordance with this Division.

 (4) A regulated person must give a person a Product Disclosure Statement for a financial product if:
 (a) the person makes an offer to the regulated person to acquire the financial product; and
 (b) the person would acquire the financial product by way of the transfer of the product to the person; and
 (c) a sale of the product to the person pursuant to the offer would take place in the circumstances described in subsection (5), (6) or (8); and
 (d) the financial product is to be sold to the person as a retail client.
The Product Disclosure Statement must be given to the person before the person becomes bound by a legal obligation to acquire the financial product pursuant to the offer and must be given in accordance with this Division.

Off‑market sale by controller

 (5) This subsection covers the circumstances in which:
 (a) the seller controls the issuer of the financial product; and
 (b) either:
 (i) the product is not able to be traded on any licensed market; or
 (ii) although the product is able to be traded on a licensed market, the offer is not made in the ordinary course of trading on a licensed market.

Note: See section 50AA for when a person controls a body.

Sale amounting to indirect issue

 (6) This subsection covers the circumstances in which:
 (a) the offer is made within 12 months after the issue of