Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:3:p13
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 3 (pt 13/19)
Character Range: 1403975–1406545

product was acquired (the allocation price) if the product had been acquired on that day is less than the allocation price on the day on which the product was acquired;
the amount that would otherwise be repaid may be reduced by the adjustment amount.
 (3) If:
 (a) the financial product is:
 (i) an investment‑linked product within the meaning given by the Insurance Contracts Act 1984; or
 (ii) a managed investment product; or
 (iia) a foreign passport fund product; or
 (iib) a security in a CCIV; or
 (iii) a superannuation product; and
 (b) on the day on which the responsible person receives notification from the product holder exercising the holder's right to return, the amount that would have been the price at which the product was acquired (the allocation price) if the product had been acquired on that day is greater than the allocation price on the day on which the product was acquired;
the amount that would otherwise be repaid is increased by the adjustment amount.
 (4) For subregulations (2) and (3), the adjustment amount is the difference between:
 (a) the price at which the product was acquired; and
 (b) the price at which the product could be acquired on the day on which the responsible person receives notification from the product holder exercising the holder's right to return.
 (5) If the price referred to in paragraph (4)(b) is not determined under the relevant contract or legal relationship on the day on which the responsible person receives notification from the product holder exercising the holder's right to return, the amount to be repaid and the adjustment amount is to be determined:
 (a) on the basis of the most recent day on which a price was calculated under the contract or legal relationship; or
 (b) if there is no day of that kind, as soon as practicable after the product issuer receives the notification.

Tax
 (6) If:
 (a) tax or duty of any kind has been paid, or is payable, by the responsible person because of the issue of the financial product; and
 (b) either:
 (i) if the tax or duty has been paid, the responsible person is unable to obtain a refund of the tax or duty; or
 (ii) if the tax or duty has not been paid, the tax or duty does not cease to be payable as a result of the exercise of the right to return the financial product;
the amount that would otherwise be repaid is reduced by the amount of the tax or duty.

Certain financial products
 (7) The amount that would otherwise be repaid in relation to the return of a financial product (other than an RSA) may be reduced to account for reasonable