Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1241s:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1241S (pt 1/2)
Character Range: 5281083–5283727

1241S  Product Disclosure Statements—situations when not required for CCIVs

No consideration to be provided
 (1) Paragraph 1012D(5)(b) also applies to the case where the financial product is not an option and is a security in a CCIV.

Client is associated with the CCIV
 (2) Treat section 1012D as also providing that, 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 security in a CCIV; and
 (b) the client is associated (within the meaning of subsection (3) of this section) with the CCIV.
 (3) For the purposes of subsection (2), the client is associated with the CCIV if the client is:
 (a) the corporate director of the CCIV; or
 (b) a director or secretary of that corporate director; or
 (c) a senior manager of the corporate director or of a related body corporate of that corporate director; or
 (d) a spouse, parent, child, brother or sister of a person who is a director or senior manager of:
 (i) that corporate director; or
 (ii) a related body corporate of that corporate director; or
 (e) a body corporate controlled by a person referred to in paragraph (a), (b), (c) or (d).

Dividend reinvestment plan or bonus share plan
 (4) Treat section 1012D as also providing that, in a recommendation situation or issue situation, the regulated person does not have to give the client a Product Disclosure Statement for a fully‑paid share in a CCIV if:
 (a) the client already holds a share, of the same kind, in the CCIV; and
 (b) either:
 (i) in a recommendation situation—the advice that constitutes the relevant conduct relates to an offer made under a dividend reinvestment plan or bonus share plan; or
 (ii) in an issue situation—the offer or issue that constitutes the relevant conduct is made under a dividend reinvestment plan or bonus share plan.
Note: For when such a share is of the same kind, see section 1241R.

Compromise or arrangement under Part 5.1
 (5) Treat section 1012D as also providing that, in an issue situation or a sale situation, the regulated person does not have to give the client a Product Disclosure Statement if the issue situation or sale situation is an offer:
 (a) of securities in a CCIV; and
 (b) made under a compromise or arrangement under Part 5.1 approved at a meeting held as a result of an order under subsection 411(1) or (1A).

Rights issues
 (6) Subsection 1012DAA(3) also applies to contraventions of the following provisions:
 (a) if the relevant product is a security in a CCIV—the provisions of Chapter 2M (as affected by Division 4 of Part