Document ID: chunk:federal_register_of_legislation:F2021C01043:body:0:p8
Version: federal_register_of_legislation:F2021C01043
Segment Type: other
Provision Reference: 
Character Range: 18646–21606

accordance with paragraphs (6)(a) to (c).

    Restriction on payment facilities
(8) The charitable investment fundraiser must ensure that an entitlement of a person as a retail, non-associated client to be paid or repaid an amount in relation to a debenture or an interest may only be discharged by:
           (a) a transfer to an account of the person with an Australian ADI; or
           (b) a cheque payable only to the person.
    Restriction on use of terms
(9) A retail charitable investment fundraiser, must not refer to any debenture or interest in a managed investment scheme issued in reliance on an exemption in section 5 as being 'at-call' or on 'deposit' or any other word or expression that is of like import to those terms.
    Requirements for disclosure

       (10) The charitable investment fundraiser must ensure that it does not cause, authorise or permit the issue of any promotional material or offer document that states or implies that any of the following has been approved or examined by ASIC:

           (a) the charitable investment fundraiser;

           (b) the debentures or interests;

           (c) any promotional material or offer document.

                   Additional disclosure requirements for retail clients
(11) The charitable investment fundraiser must not:
           (a) issue a debenture or interest in a managed investment scheme to a person as a retail client; or
           (b) accept an additional investment from the holder of a debenture or an interest in a managed investment scheme that was offered or issued in reliance on an exemption in section 5 or corresponding relief;
unless the charitable investment fundraiser has disclosed the following in writing to the person that is to hold the debenture or interest:
           (c) how the investment funds will be used to support the charitable purpose of the charitable investment fundraiser;
           (d) where the identification statement may be viewed;
           (e) that that the charitable investment fundraiser is required by law to notify investors that the debenture or interest and their offering is not subject to the usual protections for investors under the Corporations Act or regulation by ASIC;
           (f) if the charitable investment fundraiser does not hold an Australian financial services licence, a statement of that fact.
(12) The charitable investment fundraiser must ensure that each offer document and all promotional material that it provides, or causes, authorises or permits to be provided, to a person as a retail client in connection with:
           (a) the issue of a debenture or interest in a managed investment scheme; or
           (b) the acceptance of an additional investment from the holder of a debenture or an interest in a managed investment scheme that was offered or issued in reliance on an exemption in section 5 or corresponding relief;

       contain a prominent statement that the charitable