Document ID: chunk:federal_register_of_legislation:F2021C00174:reg:3:p21
Version: federal_register_of_legislation:F2021C00174
Segment Type: reg
Provision Reference: reg 3 (pt 21/29)
Character Range: 106500–109650

(ii) any other references to financing; and

                     (c) footnote 3 to the table.

                  221 If there is a financing arrangement

                  If there is a financing arrangement offered:

                     (a) the interest rate in the example must be based on the maximum portion of the total purchase price available at the maximum interest rate available under a financing arrangement and the maximum loan term in relation to that interest rate offered, at the date of the Product Disclosure Statement; and

                     (b) the loan amount, interest rate and loan term must be set out in footnote 3 to the table.

           222 Membership option

                  (1) For allocation points-based and PAYG points-based programs:

                     (a) the membership option must be the most common membership option purchased at the date of the Product Disclosure Statement; and

                     (b) if, at the date of the Product Disclosure Statement, no interests have been purchased by persons that are not associated with the responsible entity—the membership option must represent the membership option which the responsible entity reasonably believes will be the most common.

                  (2) For interval-based programs:

                     (a) the example of the week must be based on the interval purchased by the greatest number of persons not associated with the responsible entity during the 12-month period before the date of the Product Disclosure Statement;

                     (b) if no such purchases occurred during the 11-month period before the date of the Product Disclosure Statement—the example must be based on the interval owned by the greatest number of members who are not associated with the responsible entity; and

                     (c) if the responsible entity or its associates are the only members of the scheme—the example must be based on the interval the responsible entity reasonably expects will be purchased by the greatest number of persons not associated with the responsible entity.

           223 Column 2 – Amounts

                  (1) If a range of annual fees and costs may be charged, the example must use the highest amount in that range.

                  (2) In relation to levies, the example must be based on the levies for the year in which the Product Disclosure Statement is dated.

           Division 6A – Cost of Product Information

           224 Allocation points-based programs

           Cost of product for 1 year

           The cost of product information gives a summary calculation of the cost of each membership option over a 1-year period. It is calculated using the same method as the Example of Annual Fees and Costs.

           The cost of product information assumes you hold the number of points most commonly held in the membership option for the 1-year period.

           You should use this figure to help compare this product and membership options with other time-sharing schemes and membership options.

Membership option           Cost without finance  Cost with finance