Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1012ia:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1012IA (pt 1/3)
Character Range: 4313008–4315788

1012IA  Treatment of arrangements under which a person can instruct another person to acquire a financial product

Definitions
 (1) In this section:
acquirer, in relation to a custodial arrangement, has the meaning given by the definition of custodial arrangement.
client, in relation to a custodial arrangement, has the meaning given by the definition of custodial arrangement.
custodial arrangement means an arrangement between a person (the provider) and another person (the client) (whether or not there are also other parties to the arrangement) under which:
 (a) the client is, or is entitled, to give an instruction that a particular financial product, or a financial product of a particular kind, is to be acquired; and
 (b) if the client gives such an instruction, a person (the acquirer), being the provider or a person with whom the provider has or will have an arrangement, must (subject to any discretion they have to refuse) acquire the financial product, or a financial product of that kind; and
 (c) if the acquirer acquires the financial product, or a financial product of that kind, pursuant to an instruction given by the client, either:
 (i) the product is to be held on trust for the client or another person nominated by the client; or
 (ii) the client, or another person nominated by the client, is to have rights or benefits in relation to the product or a beneficial interest in the product, or in relation to, or calculated by reference to, dividends or other benefits derived from the product.
instruction includes a direction or request.
provider, in relation to a custodial arrangement, has the meaning given by the definition of custodial arrangement.
regulated acquisition means an acquisition of a financial product pursuant to an instruction by the client under a custodial arrangement, being an acquisition:
 (a) by way of issue by the issuer (the regulated person); or
 (b) pursuant to a sale by a person (the regulated person) in circumstances described in subsection 1012C(5), (6) or (8).
regulated person, in relation to a regulated acquisition of a financial product, has the meaning given by paragraph (a) or (b) (as the case requires) of the definition of regulated acquisition.

Obligation on provider to give client a PDS
 (2) Before a regulated acquisition of a financial product occurs pursuant to an instruction given by the client under a custodial arrangement, the provider must give the client a Product Disclosure Statement for the product if a Product Disclosure Statement for the product would, if there were an equivalent direct acquisition by the client, be required by subsection 1012B(3) or 1012C(3) (see subsection (3) of this section) to be given to the client by the regulated person before that acquisition occurred. For