Document ID: chunk:federal_register_of_legislation:F2023C00841:body:0:p17
Version: federal_register_of_legislation:F2023C00841
Segment Type: other
Provision Reference: 
Character Range: 43231–45999

product under the affected investment strategy.

Note:   Paragraph (b) applies whether or not a Product Disclosure Statement was in fact prepared (or required to be prepared) on the day before the change or event occurs.

(2) As soon as practicable after the change or event occurs, the trustee must notify the client in accordance with subsections (3) and (4):

(a) of the change or event; and

(b) that:

(i) the client may direct the trustee to follow an investment strategy made available by the trustee that does not involve regulated acquisitions of the accessible financial product, in relation to either or both of the following:

(A) the holding in the product that the trustee (or other person with whom the trustee has an arrangement) has acquired as a result of following the affected investment strategy;

(B) any future contribution by or on behalf of the client to the superannuation entity to the extent to which it would otherwise have been subject to the affected investment strategy; and

(ii) if the client does not give the trustee directions in accordance with subparagraph (i)—the trustee will continue to follow the affected investment strategy.

(3) The trustee must notify the client in one of the ways that a notification under subsection 1017B(1) is required to be given.

(4) The notice must give the client the information that isreasonably necessary for the client to understand the nature and effect of the change or event.

(5) At the same time as notifying the client, the trustee must give the client:

(a) where the only regulated acquisitions of the accessible financial product that the trustee is making or is proposing to make are additional acquisitions—either:

(i) any further information that the client reasonably requires for the purposes of making a decision about whether to give a direction of the kind referred to in paragraph (2)(b); or

(ii) a Product Disclosure Statement for the accessible financial product that would be required to be given under section 1012IA in relation to a regulated acquisition of the product on the instruction of a person who is not a holder of the product on the day the notice is sent; or

(b) otherwise—a Product Disclosure Statement for the accessible financial product.

Note 1: The information referred to in subparagraph (a)(i) may be given by including it in the notice referred to in subsection (2).

Note 2: Sections 1014D and 1014E will enable subparagraph (a)(ii) or paragraph (b) to be satisfied in some circumstances by giving a Product Disclosure Statement together with a Supplementary Product Disclosure Statement or just giving a Supplementary Product Disclosure Statement.

(6) The trustee does not have to give the client information or a Product Disclosure Statement