Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1012d:p2
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1012D (pt 2/4)
Character Range: 4275371–4278132

recommendation situation—the advice that constitutes the relevant conduct relates to an offer made under a distribution reinvestment plan or switching facility; or
 (ii) in an issue situation—the offer or issue that constitutes the relevant conduct is made under a distribution reinvestment plan or switching facility.
Note: Paragraph (a)—see subsection (10).

Recommendation, issue or sale situation—no consideration to be provided
 (5) In a recommendation situation, an issue situation or a sale situation, the regulated person does not have to give the client a Product Disclosure Statement if:
 (a) no consideration is to be provided for the issue or sale of the financial product; and
 (b) the financial product is not an option and is:
 (i) a managed investment product; or
 (ia) a foreign passport fund product; or
 (ii) a financial product of a kind prescribed by regulations made for the purposes of this subparagraph.
 (6) In a recommendation situation, an issue situation or a sale situation, the regulated person does not have to give the client a Product Disclosure Statement if:
 (a) the financial product is an option; and
 (b) no consideration is to be provided for the issue or sale of the financial product; and
 (c) no consideration is to be provided for the underlying financial product on the exercise of the option.

Issue or sale situation—takeovers
 (7) In an issue situation or a sale situation, the regulated person does not have to give the client a Product Disclosure Statement if:
 (a) the financial product is:
 (i) a managed investment product; or
 (ia) a foreign passport fund product; or
 (ii) an option to acquire, by way of transfer, a share in a body, a debenture of a body or a legal or equitable right or interest in a share in a body or a debenture of a body; and
 (b) the offer that constitutes the relevant conduct is made as consideration for an offer made under a takeover bid under Chapter 6; and
 (c) the offer is accompanied by a bidder's statement.
Note: Although a Product Disclosure Statement is not needed, disclosures must be made in the bidder's document under section 636.

Recommendation, issue or sale situation—responsible entity an exempt body corporate
 (8) In a recommendation situation, an issue situation or a sale situation, the regulated person does not have to give the client a Product Disclosure Statement if:
 (a) the financial product is a financial product described in paragraph 764A(1)(ba) (which relates to certain managed investment schemes that are not registered schemes); and
 (b) the holder of the office (by whatever name it is known), in relation to the managed investment scheme, that corresponds most closely to the office of responsible entity of a registered scheme is an exempt