Document ID: chunk:federal_register_of_legislation:F2024C01249:clause:10c_5
Version: federal_register_of_legislation:F2024C01249
Segment Type: clause
Provision Reference: sch 10C cl 5
Character Range: 2297447–2299774

5  Contents of section 3 (How [name of standard margin lending facility] works)
 (1) Section 3 of the Product Disclosure Statement for a standard margin lending facility must include:
 (a) an explanation of how a standard margin lending facility works including information about the following:
 (i) the maximum loan amount for the standard margin lending facility;
 (ii) the loan‑to‑value ratios for the standard margin lending facility; and
 (b) at least 1 example that illustrates the matters mentioned in subparagraphs (a)(i) and (ii); and
 (c) a description of the financial products that the borrower or potential borrower for the standard margin lending facility can purchase with the standard margin lending facility (including the Approved Securities List for the provider or potential provider of the standard margin lending facility); and
 (d) an explanation of who owns the investments purchased with the standard margin lending facility; and
 (e) a statement that:
 (i) details of the rights and obligations of the borrower for a standard margin lending facility are set out in the terms of the agreement for the standard margin lending facility; and
 (ii) recommends that a potential borrower for a standard margin lending facility read the loan agreement; and
 (iii) explains how a potential borrower can obtain a copy of the loan agreement; and
 (f) an explanation of any other features of the standard margin lending facility that:
 (i) are not covered by the matters mentioned in paragraphs (a), (c) and (d); and
 (ii) are sufficiently important to be material to a reasonable person's decision to take out the standard margin lending facility; and
 (g) a reference to:
 (i) the calculator provided on a website operated by or on behalf of the Commonwealth and an explanation of the assistance the calculator can provide; or
 (ii) if the provider or potential provider of the standard margin lending facility provides a calculator to borrowers or potential borrowers for the standard margin lending facility—that calculator and an explanation of the assistance the calculator can provide.
 (2) Section 3 of the Statement may provide for the following matters by applying, adopting or incorporating the matter in writing:
 (a) the Approved Securities List;
 (b) the explanation mentioned in paragraph (1)(f).