Document ID: chunk:federal_register_of_legislation:C2004A01334:clause:7_1012da:p1
Version: federal_register_of_legislation:C2004A01334
Segment Type: clause
Provision Reference: sch 7 cl 1012DA (pt 1/4)
Character Range: 379017–381654

1012DA  Product Disclosure Statement not required for sale amounting to indirect issue

Product Disclosure Statement not required

 (1) In a recommendation situation or sale situation, the regulated person does not have to give the client a Product Disclosure Statement if:
 (a) but for subsection (5), (11) or (12), the regulated person would be required by section 1012A or 1012C to give a Product Disclosure Statement for the relevant product; and
 (b) the transfer or sale of the financial product (the relevant product) to the client would take place in circumstances covered by subsection 1012C(6); and
 (c) the relevant product was not issued by the issuer with the purpose referred to in subparagraph 1012C(6)(c)(i); and
 (d) a determination under subsection (2) was not in force in relation to the issuer of the relevant product at the time when the relevant product was issued.

Determination by ASIC

 (2) ASIC may make a determination under this subsection if ASIC is satisfied that in the previous 12 months the issuer of the relevant product contravened any of the following provisions:
 (a) the provisions of Chapter 2M as they apply to the issuer (or, if the relevant financial product is an interest in a registered scheme, as those provisions apply to the scheme);
 (b) section 674 or 675 as it applies to the issuer (or, if the relevant financial product is an interest in a registered scheme, as that section applies to the scheme);
 (c) section 1016E, 1021D, 1021E or 1021J;
 (d) subsection (9) of this section;
 (e) section 1308 as it applies to a notice under subsection (5) of this section.

 (3) The determination must be made in writing and a copy must be published in the Gazette as soon as practicable after the determination is made.

 (4) A failure to publish a copy of the determination does not affect the validity of the determination.

Transfer or sale of quoted securities—case 1

 (5) The regulated person does not have to give the client a Product Disclosure Statement if:
 (a) the relevant product is in a class of financial products that were quoted securities at all times in the 12 months before the day on which the relevant product was issued; and
 (b) trading in that class of financial products on a prescribed financial market on which they were quoted was not suspended for more than a total of 5 days in that 12 months; and
 (c) no exemption under section 111AS or 111AT covered the issue of the relevant product, or any person as director or auditor of the issuer, at any time in that 12 months; and
 (d) no order under section 340 or 341 covered the issuer of the relevant product, or