Document ID: chunk:federal_register_of_legislation:F2018L01253:body:0:p2
Version: federal_register_of_legislation:F2018L01253
Segment Type: other
Provision Reference: 
Character Range: 2527–5468

must have a maturity period of at least 31 days;  and

      (b)     subject to Condition 3, the retail investor must not be able to redeem any funds for 31 days from the date they are invested in the debenture.

Rollover and repayment on maturity of debentures

    2.             When a debenture that is issued or sold by a registered entity to a retail investor reaches maturity, the registered entity must:

      (a)      roll over the retail investor's funds into another debenture with a maturity period of at least 31 days; or

      (b)     if the retail investor requests that the investment not be rolled over into another debenture, repay the retail investor's funds in the form of cash, cheque or direct credit to an account held at an ADI.

Early release of funds

    3.             A registered entity may, upon written request from a retail investor at any time, pay to the investor some or all of the funds invested in a debenture, provided that the registered entity is satisfied that the investor has demonstrated that he or she is subject to exceptional circumstances that may lead to hardship and that it is appropriate to release the funds.

    4.             A registered entity may only release funds under Condition 3 if the release complies with a written procedure prepared by the registered entity.  The procedure must set out the basis upon which the registered entity will determine whether exceptional circumstances that may lead to hardship exist that would warrant the early release of funds.

Prohibition on use of certain transaction facilities

    5.             A registered entity must not offer  the following facilities to retail investors in relation to an investment product:

       (a)          Automatic Teller Machine (ATM) facilities;

       (b)          BPAY facilities offered by BPAY Pty Limited ACN 079 137 518;

       (c)          Electronic Funds Transfer at Point of Sale (EFTPOS) facilities; or

       (d)          cheque account facilities.

Restriction on use of certain words and expressions

    6.             A registered entity must not use or assume the words or expressions deposit or at-call, or any other word or expression (whether or not in English) of like import, in relation to an investment product offered, issued or sold to a retail investor.

    7.             A reference to a word or expression being used or assumed includes a reference to the word or expression being used or assumed:

      (a)      as part of another word or expression; or

      (b)     in combination with other words, letters or other symbols.

Obligation to give a warning where a 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