Commonwealth Consolidated Acts Commonwealth Consolidated ActsNo consideration to be provided
(1) Paragraph 1012D(5)(b) also applies to the case where the financial product is not an option and is a security in a CCIV.
Client is associated with the CCIV
(2) Treat section 1012D as also providing that, in a recommendation situation, an issue situation or a sale situation, the regulated person does not have to give the client a Product Disclosure Statement if:
(a) the financial product is a security in a CCIV; and
(b) the client is associated (within the meaning of subsection (3) of this section) with the CCIV.
(3) For the purposes of subsection (2), the client is associated with the CCIV if the client is:
(a) the corporate director of the CCIV; or
(b) a director or secretary of that corporate director; or
(c) a senior manager of the corporate director or of a related body corporate of that corporate director; or
(d) a spouse, parent, child, brother or sister of a person who is a director or senior manager of:
(i) that corporate director; or
(ii) a related body corporate of that corporate director; or
(e) a body corporate controlled by a person referred to in paragraph (a), (b), (c) or (d).
Dividend reinvestment plan or bonus share plan
(4) Treat section 1012D as also providing that, in a recommendation situation or issue situation, the regulated person does not have to give the client a Product Disclosure Statement for a fully - paid share in a CCIV if:
(a) the client already holds a share, of the same kind, in the CCIV; and
(i) in a recommendation situation--the advice that constitutes the relevant conduct relates to an offer made under a dividend reinvestment plan or bonus share plan; or
(ii) in an issue situation--the offer or issue that constitutes the relevant conduct is made under a dividend reinvestment plan or bonus share plan.
Note: For when such a share is of the same kind, see section 1241R.
Compromise or arrangement under Part 5.1
(5) Treat section 1012D as also providing that, in an issue situation or a sale situation, the regulated person does not have to give the client a Product Disclosure Statement if the issue situation or sale situation is an offer:
(a) of securities in a CCIV; and
(b) made under a compromise or arrangement under Part 5.1 approved at a meeting held as a result of an order under subsection 411(1) or (1A).
(6) Subsection 1012DAA(3) also applies to contraventions of the following provisions:
(a) if the relevant product is a security in a CCIV--the provisions of Chapter 2M (as affected by Division 4 of Part 8.4B), or the provisions of that Division, as they:
(ii) apply for a sub - fund of the CCIV;
(b) if the relevant product is a security in a CCIV--section 675 as it applies to the CCIV.
(7) Treat subsection 1012DAA(7) as:
(a) providing that paragraph 1012DAA(7)(d) applies only if the relevant product is an interest in a registered scheme; and
(b) also including the following paragraph:
"(da) if the relevant product is a security in a CCIV--states that, as at the date of the notice, the CCIV has complied with the provisions of Chapter 2M (as affected by Division 4 of Part 8.4B), and the provisions of that Division, as they:
(ii) apply for each sub - fund of the CCIV; and".
Small scale offerings
(8) Section 1012E also applies to financial products that are securities in a CCIV. For the purposes of that section, to the extent that those securities are referable to a sub - fund of the CCIV, treat the:
(a) 20 purchasers ceiling (subsections 1012E(6) and (7)); and
(b) $2 million ceiling (subsections 1012E(6) and (7));
as applying only to financial products that are securities referable to that
sub - fund of the CCIV.