Document ID: chunk:federal_register_of_legislation:C2008C00460:clause:1_1012daa:p1
Version: federal_register_of_legislation:C2008C00460
Segment Type: clause
Provision Reference: sch 1 cl 1012DAA (pt 1/3)
Character Range: 63921–66537

1012DAA  Rights issues for which Product Disclosure Statement is not required

 (1) In a recommendation situation or issue situation, the regulated person does not have to give the client a Product Disclosure Statement if:
 (a) but for subsection (2), the regulated person would be required by section 1012B to give a Product Disclosure Statement for the transfer or issue of a financial product (the relevant product); and
 (b) a determination under subsection (3) was not in force in relation to the issuer of the relevant product at the time when the relevant product was issued.

Conditions required for rights issue

 (2) The regulated person does not have to give the client a Product Disclosure Statement if:
 (a) the relevant product is being offered under a rights issue; and
 (b) the class of the relevant product are quoted securities at the time at which the offer is made; and
 (c) trading in that class of the relevant product on a prescribed financial market on which they are quoted was not suspended for more than a total of 5 days during the shorter of the following periods:
 (i) the period during which the class of the relevant product is quoted;
 (ii) the period of 12 months before the day on which the offer is made; and
 (d) no exemption under section 111AS or 111AT covered the issuer of the relevant product, or any person as director or auditor of the issuer, at any time during the relevant period referred to in paragraph (c); and
 (e) no order under section 340 or 341 covered the issuer of the relevant product, or any person as director or auditor of the issuer, at any time during the relevant period referred to in paragraph (c); and
 (f) the issuer of the relevant product gives the relevant market operator for the issuer a written notice that complies with subsection (7) within the 24 hour period before the relevant conduct occurs.

Determination by ASIC

 (3) ASIC may make a determination under this subsection if ASIC is satisfied that in the previous 12 months the issuer of the relevant product contravened any of the following provisions:
 (a) the provisions of Chapter 2M as they apply to the registered scheme in which the relevant product is an interest;
 (b) section 674 or 675 as it applies to the registered scheme in which the relevant product is an interest;
 (c) section 1016E, 1021D, 1021E or 1021J;
 (d) subsection (10) of this section;
 (e) section 1308 as it applies to a notice under subsection (2) of this section.

 (4) The determination must be made in writing and a copy must be published in the Gazette as soon as practicable after the determination