Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1016e:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1016E (pt 1/5)
Character Range: 4372661–4375416

1016E  Choices open to person making the offer if disclosure condition not met or Product Disclosure Statement defective
 (1) This section applies if:
 (a) a Product Disclosure Statement for a financial product states that a financial product to which the Statement relates will not be issued or sold unless:
 (i) applications for a minimum number of financial products of that kind are received; or
 (ii) a minimum amount is raised;
  and that condition is not satisfied within 4 months after the relevant date (see subsections (3) and (4)); or
 (b) a Product Disclosure Statement for a financial product states or implies that a financial product to which the Statement relates will be able to be traded on a financial market (whether in Australia or elsewhere) and:
 (i) an application has not, within 7 days after the relevant date (see subsection (4)), been made to the operator of that market for the taking of such action as is necessary to enable financial products of that kind to be traded on that market; or
 (ii) at the end of the period of 3 months starting on the relevant date, financial products of that kind are not able to be traded on that market; or
 (c) in relation to a Product Disclosure Statement for a financial product, the responsible person becomes aware that the Product Disclosure Statement was defective as at the time when it was prepared, or that it became or has become defective as at some later time.
Note: Information and statements in a Supplementary Product Disclosure Statement are taken to be contained in the Product Disclosure Statement it supplements (see section 1014D).
 (2) If this section applies, the responsible person must, in relation to any application for financial products of the relevant kind that is made in response to the Product Disclosure Statement (the first Product Disclosure Statement) and that has not resulted in an issue or sale of financial products of that kind, comply with one of the following paragraphs:
 (a) the responsible person must repay the money they received from the applicant; or
 (aa) the responsible person must give the applicant:
 (i) a new Product Disclosure Statement for the financial products, and an additional statement that identifies the respects in which the new Product Disclosure Statement is materially different from the first Product Disclosure Statement; and
 (ii) 1 month to withdraw their application and be repaid; or
 (b) the responsible person must give the applicant:
 (i) a Supplementary Product Disclosure Statement that changes the statement referred to in paragraph (1)(a) or (b), or that corrects the deficiency referred to in paragraph (1)(c); and
 (ii) 1 month to withdraw their applications and be repaid; or
 (ba) the responsible person