Document ID: chunk:federal_register_of_legislation:C2005C00498:clause:1_1016d
Version: federal_register_of_legislation:C2005C00498
Segment Type: clause
Provision Reference: sch 1 cl 1016D
Character Range: 584916–587430

1016D  Condition about ability to trade on a market must be fulfilled before issue or sale

 (1) If 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), the responsible person must only issue or sell a financial product of that kind if:
 (a) the product is able to be traded on that market; or
 (b) an application has, within 7 days after the relevant date (see subsection (3)), 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.
Paragraph (b) ceases to apply to the financial product at the end of the period of 3 months starting on the relevant date.

Note 1: Statements in a Supplementary Product Disclosure Statement are taken to be contained in the Product Disclosure Statement it supplements (see section 1014D).

Note 2: Failure to comply with this subsection is an offence (see subsection 1311(1)).

Issue or transfer void if quotation condition not fulfilled

 (2) If a Product Disclosure Statement for a financial product states or implies that the financial product is to be quoted on a financial market (whether in Australia or elsewhere) and:
 (a) an application has not, within 7 days after the relevant date (see subsection (3)), 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
 (b) the product is not able to be traded on that market at the end of 3 months after the relevant date;
then:
 (c) an issue or transfer of a financial product of that kind to a person to whom the Statement was, or should have been, given is void; and
 (d) the responsible person must return any money received from a person to whom the Statement was, or should have been, given as soon as practicable.

Note: Failure to comply with paragraph (d) is an offence (see subsection 1311(1)).

The relevant date

 (3) For the purposes of this section, the relevant date in relation to an express or implied statement is:
 (a) if the Statement is express or implied in a Product Disclosure Statement, disregarding the effect of section 1014D—the date of the Product Disclosure Statement; or
 (b) if the Statement is express or implied in a Supplementary Product Disclosure Statement—the date of the Supplementary Product Disclosure Statement.