Document ID: chunk:federal_register_of_legislation:C2005C00498:clause:1_1016e:p1
Version: federal_register_of_legislation:C2005C00498
Segment Type: clause
Provision Reference: sch 1 cl 1016E (pt 1/2)
Character Range: 587430–590154

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:
 (i) the Statement contains a misleading or deceptive statement; or
 (ii) there is an omission from the Statement of information it was required to contain;
  that is materially adverse from the point of view of a reasonable person deciding, as a retail client, whether to acquire a financial product to which the Statement relates; or
 (d) in relation to a Product Disclosure Statement for a financial product, the responsible person becomes aware of a new circumstance that:
 (i) has arisen since the Product Disclosure Statement was prepared; and
 (ii) would have been required to be included in the Product Disclosure Statement if it had arisen before the Statement was prepared; and
 (iii) is materially adverse from the point of view of a reasonable person deciding, as a retail client, whether to acquire a financial product to which the Statement relates.

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 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