Document ID: chunk:federal_register_of_legislation:F2018L01253:body:0:p3
Version: federal_register_of_legislation:F2018L01253
Segment Type: other
Provision Reference: 
Character Range: 5169–8139

registered entity offers securities and must make disclosure under Part 6D.2 of the Corporations Act

    8.             Where:

       (a)          a registered entity takes money on deposit by offering, and issuing or selling, securities; and

       (b)          the offer of the securities needs disclosure to the investor under Part 6D.2 of the Corporations Act,

    a prudential supervision warning must be clearly and prominently set out in each disclosure document relating to the securities.

Obligation to give a warning where a registered entity issues or sells a financial product and must make disclosure under Part 7.9 of the Corporations Act

    9.             Where:

       (a)          a registered entity takes money on deposit by issuing or selling a financial product; and

       (b)          the issue or sale of the financial product requires a Product Disclosure Statement to be or to have been given to  the investor under Part 7.9 of the Corporations Act,

    a prudential supervision warning must be clearly and prominently set out in the Product Disclosure Statement.

Obligation to give a warning in other cases

    10.         Where a registered entity takes money on deposit in circumstances that are not covered by Conditions 8 or 9, a prudential supervision warning must be given to the investor in the following manner:

       (a)          if, before the investment product is issued or sold 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 those documents;

       (b)          if, before the investment product is issued or sold 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 those electronic communications; or

       (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 or sold to the investor.

Exceptions to the obligation to give a warning

    11.         Despite Conditions 8 to 10, a prudential supervision warning does not have to be given in any of the following circumstances:

       (a)          where the investor is a related body corporate of  the registered entity;

       (b)          where the registered entity believes, on reasonable grounds, that the investor is a professional investor;

       (c)          where the registered entity believes, on reasonable grounds, that the investment product is provided for use in connection with a business that is not a small business;

       (d)          where the registered entity