Commonwealth Consolidated Acts

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Minimum subscription condition must be fulfilled before issue or sale

    If 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:

  (a)   applications for a minimum number of financial products of that kind are received; or

  (b)   a minimum amount is raised;

the responsible person must not issue or sell a financial product of that kind, pursuant to an application made in response to the Statement, if that condition has not been satisfied. For the purpose of working out whether the condition has been satisfied, a person who has agreed to take a financial product as underwriter is taken to have applied for that product.

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 1A:   This subsection does not apply to an issue or sale pursuant to paragraph   1016E(2)(c) (see subsection   1016E(2C)).

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

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