Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:7:p31
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 7 (pt 31/39)
Character Range: 1180658–1183477

derivatives
  For paragraph 1016F(7)(a) of the Act, financial products that are derivatives are excluded from section 1016F if the operating rules of a licensed market or a licensed CS facility permit the closing out of the derivatives by the matching up of the arrangement with another arrangement of the same kind under which a person has assumed an offsetting position.

Division 2BA—Product Disclosure Statement for discretionary mutual funds

7.9.07CA  Extension of Product Disclosure Statement requirements to wholesale clients
 (1) For paragraph 949B(1)(e) of the Act, a regulated person must give a wholesale client a Product Disclosure Statement or a Supplementary Product Disclosure Statement for a financial product if:
 (a) the financial product is offered or issued by a discretionary mutual fund (within the meaning given by subsections 5(5) and (6) of the Financial Sector (Collection of Data) Act 2001); and
 (b) the regulated person would be required to give the Statement if the product were offered or issued to a retail client.
 (2) The Product Disclosure Statement or Supplementary Product Disclosure Statement required to be given under this regulation must be the same as that which would be given to a retail client.

Division 2C—Situations where a Product Disclosure Statement is not required

7.9.07D  Product Disclosure Statement not required for offers of bundled contracts of insurance
  For paragraph 1020G(1)(c) of the Act, section 1012D of the Act is modified by adding before subsection 1012D(10):
 '(9G) In an issue situation or a sale situation, the regulated person does not have to give the client a Product Disclosure Statement for a financial product if:
 (a) the financial product is a general insurance product; and
 (b) the product would be provided to the person as a retail client; and
 (c) the financial product would be provided as part of a contract of insurance that offers more than one kind of insurance cover; and
 (d) the regulated person reasonably believes that the client does not intend to acquire the product.

7.9.07E  Product Disclosure Statement not required if offer of financial product is declined
  For paragraph 1020G(1)(c) of the Act, section 1012D of the Act is modified by adding before subsection 1012D(10):
 '(9J) In an issue situation or sale situation, the regulated person does not have to give the client a Product Disclosure Statement for a financial product if:
 (a) the situation is an offer to issue or sell the financial product; and
 (b) the client informs the regulated person, in the course of the contact during which the offer is made, that the client does not intend to acquire the financial product; and
 (c) no issue or sale results from the offer.
 (9K) For paragraph (9J)(c), the client must inform the regulated person explicitly