Commonwealth Consolidated Regulations

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New section 1012G: product disclosure statement may sometimes be provided later

                   For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies as if section 1012G were omitted and the following section were substituted:

"1012G  Product disclosure statement may sometimes be provided later: financial products subject to a cooling off period

Application of section

             (1)  The regulated person may deal with a financial product under this section only if the financial product is one for which an application form is not required under section 1016A and section 1019B (cooling off period) will apply if the client enters into a legal obligation to acquire the product pursuant to the recommendation or offer that constitutes the relevant conduct.

No need to give Product Disclosure Statement in certain circumstances

             (2)  In a recommendation situation or an issue situation, the regulated person need not give the client a Product Disclosure Statement for the financial product at or before the time when it would otherwise be required to be given if:

                     (a)  the client expressly instructs the regulated person that they require:

                              (i)  in a recommendation situation--the advice constituting the recommendation; or

                             (ii)  in an issue situation--the financial product;

                            to be provided or issued immediately, or by a specified time; and

                     (b)  it is not reasonably practicable, while complying with the client's instructions, to give the client the Product Disclosure Statement at or before the time when it would otherwise be required to be given.

The regulated person must comply instead with subsection (3).

Requirements to be complied with to be able to give Product Disclosure statement later

             (3)  The regulated person must:

                     (a)  at or before the time referred to in paragraph (2)(b), orally communicate the following information to the client:

                              (i)  the name and contact details of the issuer of the financial product;

                             (ii)   information about the cooling off regime that applies in respect of acquisitions of the product (whether this regime is provided for by law or otherwise);

                            (iii)  that the client should consider the information in the Product Disclosure Statement that will be provided to the client;

                            (iv)  the further information (if any) requested by the client in response to a question under paragraph (b); and

                     (b)  at or before the time referred to in paragraph (2)(b), ask the client whether the client would like further information about the financial product ; and

                     (c)  give the client the Product Disclosure Statement as soon as practicable after that time, and in any event not later than:

                              (i)  the time when the confirmation requirement (if applicable) is complied with; or

                             (ii)  the end of the fifth business day after the day on which the financial product was issued or sold to the client.

How information to be communicated

             (4)  The information referred to in paragraph (3)(a) must be communicated in a clear, concise and effective manner.

How confirmation requirement to be complied with

             (5)  For the purposes of subparagraph (3)(c)(i), the confirmation requirement is complied with when:

                     (a)  the client receives confirmation, as mentioned in paragraph 1017F(5)(a), of the transaction by which they acquired the financial product; or

                     (b)  confirmation of that transaction is available to the client by a facility as mentioned in paragraph 1017F(5)(b)."

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