Document ID: chunk:federal_register_of_legislation:F2024C01249:clause:10c_3
Version: federal_register_of_legislation:F2024C01249
Segment Type: clause
Provision Reference: sch 10C cl 3
Character Range: 2294136–2296768

3  Contents of section 1 (About [name of provider of the standard margin lending facility] and [name of standard margin lending facility])
  Section 1 of the Product Disclosure Statement must include:
 (a) a short description of the standard margin lending facility provider and its business; and
 (b) a short summary of what a standard margin lending facility is; and
 (c) a statement setting out the possible consequences of borrowing money to invest, including the effect of magnifying both gains and losses; and
 (d) a statement that the borrower for a standard margin lending facility should regularly monitor the borrower's portfolio so that:
 (i) the borrower can be aware of changes (if any) to the terms of the standard margin lending facility; and
 (ii) the borrower can take timely action to prevent potential losses in relation to the borrower's portfolio; and
 (e) a statement that the borrower for a standard margin lending facility may need, at short notice, to pay an additional amount into the standard margin lending facility or sell some of the investments for which the standard margin lending facility is made; and
 (f) a statement that the provider of a standard margin lending facility has the right in certain circumstances to sell all, or part, of the borrower's portfolio and may not be required under the terms of the standard margin lending facility to provide notice to the borrower of its intention to sell; and
 (g) a statement that if the value of the portfolio for a standard margin lending facility does not cover the cost of repayments for the standard margin lending facility:
 (i) the borrower for the standard margin lending facility may need to access other funds to repay the standard margin lending facility; or
 (ii) the provider of the standard margin lending facility may sell assets provided as security for the standard margin lending facility, for example, the borrower's residential property; and
 (h) a statement that the law requires the provider of a standard margin lending facility to:
 (i) assess whether the standard margin lending facility is unsuitable for the potential borrower for the standard margin lending facility; and
 (ii) if the potential borrower for the standard margin lending facility requests a copy of the assessment—to provide a copy of the assessment to the potential borrower for the standard margin lending facility.
Note: The provider of a standard margin lending facility is not required to give the borrower or potential borrower for the standard margin lending facility a copy of the assessment if the standard margin lending facility is not issued.