Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - SCHEDULE 10A

Modifications of Part 7.9 of the Act

(regulations 7.9.02, 7.9.04, 7.9.05, 7.9.06, 7.9.09C, 7.9.11C, 7.9.11N, 7.9.11V, 7.9.12, 7.9.24, 7.9.27, 7.9.30, 7.9.43, 7.9.47, 7.9.51, 7.9.56, 7.9.60, 7.9.61, 7.9.63, 7.9.73 and 8.4.02)

Part 1 -- Modifications relating to sub-plans

   

1.1  Paragraph 1012D(10)(b)

substitute

                     (b)  a superannuation product is the same as another superannuation product only if the other superannuation product is:

                              (i)  an interest in the same sub-plan; or

                             (ii)  if there is no sub-plan--an interest in the same fund.

Part 2 -- Modifications relating to Product Disclosure Statements for RSA products

   

2.1  After subsection 1012D(9B)

insert

Recommendation, issue or sale situation--takeover or merger

          (9C)  In a recommendation situation, issue situation or sale situation, the issuer does not have to give a Product Disclosure Statement if a person:

                     (a)  becomes the holder of an RSA with an RSA institution; and

                     (b)  does so as a direct result of:

                              (i)  the takeover of the RSA provider with which the person previously held an RSA by:

                                        (A)  the RSA institution; or

                                        (B)  a corporation that is a related corporation of the RSA institution; or

                             (ii)  a merger involving the RSA provider with which the person previously held an RSA and which results in the creation of the RSA institution; or

                            (iii)  the transfer of any, or all of, the assets and liabilities of the RSA provider with which the person previously held an RSA to the RSA institution:

                                        (A)  under a provision of the Banking Act 1959 , the Life Insurance Act 1995 or of any other law of the Commonwealth, a State or a Territory; or

                                        (B)  under a voluntary transfer of engagements; or

                                        (C)  on the request of the Australian Prudential Regulation Authority.

Part 3 -- Modifications relating to insurance options under contract associated with superannuation interest

   

3.1  After subsection 1012D(9B)

insert

Insurance options

          (9C)  A product issuer does not have to give a Product Disclosure Statement to a person if:

                     (a)  a product holder seeks to change the coverage of insurance options under a contract associated with a superannuation interest; and

                     (b)  information in relation to the change of insurance options has not already been given in a periodic statement or in accordance with other periodic reporting requirements under Division 3.

          (9D)  If subsection (9C) applies:

                     (a)  the product issuer must ensure that the product holder has sufficient information to enable the product holder to make an informed decision; and

                     (b)  that subsection does not prevent the product issuer from complying with paragraph (a) by giving the product holder a Product Disclosure Statement.

Part 5A -- Modifications for margin loan

   

5A.1  Section 1011B, after definition of regulated person

insert

Regulations means the Corporations Regulations 2001.

5A.2  Subsection 1013C(1)

substitute

             (1)  A Product Disclosure Statement for a margin loan to which Subdivision 4.2A of Division 4 of Part 7.9 of the Corporations Regulations 2001 applies must:

                     (a)  include the statements and information required by regulations made for this paragraph; and

                     (b)  be in the form required by regulations made for this paragraph.

          (1A)  If a law other than this Act or regulations under this Act requires the responsible person for the Product Disclosure Statement:

                     (a)  to give, disclose or provide a matter; or

                     (b)  to include a matter in the Statement;

the Statement may make provision for the matter by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

          (1B)  In addition to subsection (1A), a Product Disclosure Statement may make provision for a matter contained in writing by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

          (1C)  If a Product Disclosure Statement applies, adopts or incorporates a matter contained in writing:

                     (a)  the applied, adopted or incorporated matter forms part of the Statement; and

                     (b)  the responsible person for the Statement is not required to give the document which provides for the matter to a person (as part of giving the Statement or later) if that person has not asked for the document; and

                     (c)  the responsible person for the Statement must give the document which provides for the matter to a person if that person asks for the document.

          (1D)  The regulations may prescribe requirements for applying, adopting, or incorporating a matter contained in writing in a Product Disclosure Statement.

          (1E)  A Product Disclosure Statement may refer to information, other than information to which subsection (1A) or (1B) applies, that is set out in another document; and

           (1F)  If the Product Disclosure Statement refers to other information as permitted by subsection (1E), that information does not form part of the Statement.

Note:          Although the information mentioned in subsection (1F) would not form part of the Product Disclosure Statement, it would be subject to requirements imposed by the Act or these Regulations such as the prohibition on making misleading or deceptive statements.

5A.3  Section 1013D

omit

5A.4  Section 1013E

omit

5A.5  Section 1013L

substitute

1013L  When Product Disclosure document may consist of 2 or more documents

                   A Product Disclosure Statement may consist of 2 or more documents, only if:

                     (a)  one of the documents is a document that complies with the requirements for a Product Disclosure Statement under this Act and the Regulations; and

                     (b)  the other document or documents contain a matter in writing that is applied, adopted or incorporated by the document mentioned in paragraph (a).

5A.6  Subdivision D, Division 2

omit

5A.7  Subsection 1015D(3)

omit

Part 5B -- Modifications for superannuation products to which Subdivision 4.2B of Division 4 of Part 7.9 applies

   

5B.1  Section 1011B, after definition of regulated person

insert

Regulations means the Corporations Regulations 2001.

5B.2  Subsection 1013C(1)

substitute

             (1)  A Product Disclosure Statement for a superannuation product to which Subdivision 4.2B of Division 4 of Part 7.9 of the Corporations Regulations 2001 applies must:

                     (a)  include the statements and information required by regulations made for this paragraph; and

                     (b)  be in the form required by regulations made for this paragraph.

          (1A)  If a law other than this Act or regulations under this Act requires the responsible person for the Product Disclosure Statement:

                     (a)  to give, disclose or provide a matter; or

                     (b)  to include a matter in the Statement;

the Statement may make provision for the matter by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

          (1B)  In addition to subsection (1A), a Product Disclosure Statement may make provision for a matter contained in writing by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

          (1C)  If a Product Disclosure Statement applies, adopts or incorporates a matter contained in writing:

                     (a)  the applied, adopted or incorporated matter forms part of the Statement; and

                     (b)  the responsible person for the Statement is not required to give the document which provides for the matter to a person (as part of giving the Statement or later) if that person has not asked for the document; and

                     (c)  the responsible person for the Statement must give the document which provides for the matter to a person if that person asks for the document.

          (1D)  The regulations may prescribe requirements for applying, adopting, or incorporating a matter contained in writing in a Product Disclosure Statement.

          (1E)  A Product Disclosure Statement may refer to information, other than information to which subsection (1A) or (1B) applies, that is set out in another document; and

           (1F)  If the Product Disclosure Statement refers to other information as permitted by subsection (1E), that information does not form part of the Statement.

Note:          Although the information mentioned in subsection (1F) would not form part of the Product Disclosure Statement, it would be subject to requirements imposed by the Act or these Regulations such as the prohibition on making misleading or deceptive statements.

5B.3  Section 1013D

omit

5B.4  Section 1013E

omit

5B.5  Section 1013L

substitute

1013L  When Product Disclosure Statement may consist of 2 or more documents

                   A Product Disclosure Statement may consist of 2 or more documents only if:

                     (a)  one of the documents is a document that complies with the requirements for a Product Disclosure Statement under this Act and the Regulations; and

                     (b)  the other document or documents contain a matter in writing that is applied, adopted or incorporated by the document mentioned in subparagraph (a).

5B.6  Subsection 1015D(3)

omit

Part 5C -- Modifications for simple managed investment scheme

   

5C.1  Section 1011B, after definition of regulated person

insert

Regulations means the Corporations Regulations 2001.

5C.2  Subsection 1013C(1)

substitute

             (1)  A Product Disclosure Statement for a simple managed investment scheme to which Subdivision 4.2C of Division 4 of Part 7.9 of the Corporations Regulations 2001 applies must:

                     (a)  include the statements and information required by regulations made for this paragraph; and

                     (b)  be in the form required by regulations made for this paragraph; and

                     (c)  relate only to 1 simple managed investment scheme.

          (1A)  If a law other than this Act or regulations under this Act requires the responsible person for the Product Disclosure Statement:

                     (a)  to give, disclose or provide a matter; or

                     (b)  to include a matter in the Statement;

the Statement may make provision for the matter by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

          (1B)  In addition to subsection (1A), a Product Disclosure Statement may make provision for a matter contained in writing by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

          (1C)  If a Product Disclosure Statement applies, adopts or incorporates a matter contained in writing:

                     (a)  the applied, adopted or incorporated matter forms part of the Statement; and

                     (b)  the responsible person for the Statement is not required to give the document which provides for the matter to a person (as part of giving the Statement or later) if that person has not asked for the document; and

                     (c)  the responsible person for the Statement must give the document which provides for the matter to a person if that person asks for the document.

          (1D)  The regulations may prescribe requirements for applying, adopting, or incorporating a matter contained in writing in a Product Disclosure Statement.

          (1E)  A Product Disclosure Statement may refer to information, other than information to which subsection (1A) or (1B) applies, that is set out in another document; and

           (1F)  If the Product Disclosure Statement refers to other information as permitted by subsection (1E), that information does not form part of the Statement.

Note:          Although the information mentioned in subsection (1F) would not form part of the Product Disclosure Statement, it would be subject to requirements imposed by the Act or these Regulations such as the prohibition on making misleading or deceptive statements.

5C.2  Section 1013D

omit

5C.3  Section 1013E

omit

5C.4  Section 1013L

substitute

1013L  When Product Disclosure Statement may consist of 2 or more documents

                   A Product Disclosure Statement may consist of 2 or more documents only if:

                     (a)  one of the documents is a document that complies with the requirements for a Product Disclosure Statement under this Act and the Regulations; and

                     (b)  the other document or documents contain a matter in writing that is applied, adopted or incorporated by the document mentioned in subparagraph (a).

5C.5  Subsection 1015D(3)

omit

Part 6 -- Modifications relating to application forms and Product Disclosure Statements for standard employer-sponsor arrangements and successor funds

   

6.1  After subsection 1016A(2)

insert

          (2A)  Subsection (2) does not apply in relation to a member who:

                     (a)  held an interest in a superannuation fund as a standard employer-sponsored member; and

                     (b)  is issued with an interest in relation to another sub-plan of the superannuation fund as a result of a transfer related to the cessation of the member's employment with the employer-sponsor.

6.2  After subsection 1016A(3)

insert

          (3A)  Subsection (3) does not apply in relation to a superannuation product if:

                     (a)  the issuer is a public offer entity that is a successor fund; and

                     (b)  an employer became a standard employer-sponsor of a fund in the following way:

                              (i)  the employer was a standard employer-sponsor of a fund ( fund 1 );

                             (ii)  the benefits of members in fund 1 were transferred to a successor fund;

                            (iii)  the employer was a standard employer-sponsor of fund 1 immediately before those benefits were so transferred;

                            (iv)  the employer was a standard employer-sponsor of the successor fund immediately after those benefits were so transferred.

6.3  After subsection 1012D(9)

insert

Recommendation, issue or sale situation--successor fund

          (9A)  In a recommendation situation, issue situation or sale situation, a regulated person does not have to give the client a Product Disclosure Statement if:

                     (a)  the financial product is an RSA product; and

                     (b)  subsection 1012I(2) applies.

Part 6A -- Modifications relating to MySuper measures

   

6A.1  After subsection 1017BA(4)

Insert:

       (4AA)  Despite paragraph 1539(a) of the Act, this section applies, to the extent that it relates to MySuper products, on and after 31 December 2013.

Part 7 -- Modifications relating to life pensioners, members subject to compulsory protection of small amounts and members with small amounts that are expected to grow quickly

   

7.1  After subsection 1017D(7)

insert

             (8)  The trustee of a fund need not give a periodic statement or other information to a member:

                     (a)  in relation to any period during which the member is a life pensioner of the fund; or

                     (b)  if the member is a pensioner of the fund, and has requested that that information not be provided.

             (9)  Subsection (8) does not apply to information mentioned in subregulation 7.9.21A (1) of the Corporations Regulations 2001 .

           (10)  If, at the end of a reporting period, a member of a regulated superannuation fund is a protected member, the trustee need give the member only the following information in the periodic statement for that reporting period:

                     (a)  the contact details of the fund;

                     (b)  either:

                              (i)  the amount of the member's withdrawal benefit at the end of the reporting period; or

                             (ii)  the total of the amounts that have been received by the fund in respect of the member;

                     (c)  in so far as applicable, the information mentioned in subregulation 7.9.21(1) of the Corporations Regulations 2001 .

           (11)  If, in relation to a member of a fund, the trustee of the fund takes advantage of subsections (12) to (15), the trustee must not, in relation to that member, take advantage of subsection (10).

           (12)  If, at the end of a reporting period, the trustee of a fund has a reasonable expectation that a particular protected member will have a withdrawal benefit of at least $1 500 within 12 months after the end of that reporting period, the trustee need not show, in the periodic statement, the effect of the member-protection standards.

           (13)  For subsection (12), a trustee is not taken to have a reasonable expectation that a member will have a withdrawal benefit of at least $1 500 within the period of 12 months referred to in that subsection if termination of the member's employment with a current employer (not being an employer who or that is an associate, within the meaning of paragraph 70(a) of the SIS Act, of the member) would be likely to result in the member's withdrawal benefit being below $1 500 at the end of that period.

           (14)  If, at the end of the 12-month period, the member's withdrawal benefit has not reached $1 500, the trustee must show, in the periodic statement provided to the member for each reporting period ending on or after the end of the 12-month period, the effect of the member-protection standards.

           (15)  The trustee of a fund must not take advantage of subsection (12) in respect of a person more than once unless, after an occasion on which the trustee does so but before the next occasion, the member leaves and rejoins the fund.

           (16)  In this section:

mandated employer-financed benefits has the same meaning as in subregulation 5.01(1) of the Superannuation Industry (Supervision) Regulations 1994 .

member protection standards has the same meaning as in the Superannuation Industry (Supervision) Regulations 1994 .

protected member has the same meaning as in the Superannuation Industry (Supervision) Regulations 1994 .

           (17)  For the definition of protected member in subsection (16), a benefit in a fund is taken to contain or to have contained mandated employer-financed benefits unless:

                     (a)  if the benefits arose in relation to contributions made before 1 July 1995--the trustee of the fund reasonably believes otherwise; or

                     (b)  if the benefits arose in relation to contributions made on or after 1 July 1995--the trustee of the fund knows otherwise.

Part 8 -- Modifications relating to periodic statements for RSA providers

   

8.1  After subsection 1017D(7)

insert

             (8)  If:

                     (a)  a person ceases to be an RSA holder before RSA information in respect of a particular reporting period (the relevant period ) is given; and

                     (b)  either:

                              (i)  the RSA provider gives, or intends to give, information to the person in respect of a reporting period that is the same as, or includes the whole of, the relevant period; or

                             (ii)  if the person ceases to be an RSA holder by reason of death--the RSA provider complies in relation to the person with the relevant requirements of this Act and the regulations;

the RSA provider need not give RSA information, in respect of the relevant period, to or in relation to the person.

             (9)  If, at the end of a reporting period, an RSA holder is a protected RSA holder, the RSA provider need give the RSA holder only the following information for the reporting period:

                     (a)  the contact details of the RSA provider;

                     (b)  either:

                              (i)  the amount of the RSA holder's withdrawal benefit at the end of the reporting period; or

                             (ii)  the total of the amounts that have been received by the RSA provider in respect of the RSA holder;

                     (c)  the effective rate of net interest applied to the RSA for each year of the previous 5 years ending at the end of the reporting period;

                     (d)  the compound average of the annual effective rate of net interest applied to the RSA for each year of the previous 5 years ending at the end of the reporting period;

                     (e)  details (in summary form) of arrangements that the RSA provider has to deal with inquiries or complaints;

                      (f)  a statement that other information is available on request;

                     (g)  a suggestion that the RSA holder may wish to consider:

                              (i)  other superannuation arrangements that may provide a greater return over the long term; and

                             (ii)  seeking advice on alternative investment strategies that may be more suitable;

                     (h)  if the RSA provider reduced the RSA holder's benefits in connection with payment of a superannuation contributions surcharge or an advance instalment of surcharge:

                              (i)  the amount deducted; and

                             (ii)  if there is a difference between the amount deducted and the amount assessed under subsection 15(1) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 or between the amount deducted and the amount determined under subsection 15(2) of that Act--a statement explaining the difference.

           (10)  A nil amount need not be disclosed.

           (11)  If, in relation to an RSA holder, the RSA provider takes advantage of subsections (13) to (16), the RSA provider must not, in relation to the RSA holder, take advantage of subsection (9).

           (12)  If, at the end of a reporting period, an RSA has not been in existence for 5 years, the references in paragraphs (9)(c) and (d) to 5 years are taken to be references to the whole period of existence of the RSA.

           (13)  If, at the end of a reporting period, an RSA provider has a reasonable expectation that an RSA holder will have a withdrawal benefit of at least $1 500 within 12 months after the end of the reporting period, the RSA provider need not show, in RSA information provided to the RSA holder, the effect of the RSA holder-protection standards.

           (14)  For subsection (12), an RSA provider is not taken to have a reasonable expectation that the RSA holder will have a withdrawal benefit of $1 500 within the period of 12 months mentioned in that subsection if termination of the RSA holder's employment with a current employer would be likely to result in the RSA holder's withdrawal benefit being below $1 500 at the end of that period.

           (15)  If, at the end of the 12-month period, the RSA holder's withdrawal benefit has not reached $1 500, the RSA provider must show, in RSA information provided to the RSA holder for each reporting period ending on or after the end of the 12-month period, the effect of the RSA holder-protection standards.

           (16)  An RSA provider must not take advantage of subsection (13) in respect of a person more than once unless, after an occasion on which the RSA provider does so but before the next occasion, the person ceases to be the holder of the RSA and subsequently becomes the holder of an RSA provided by the same RSA provider.

           (17)  In this section:

mandated employer-financed benefits has the same meaning as in the Retirement Savings Accounts Regulations 1997 .

protected member has the same meaning as in the Retirement Savings Accounts Regulations 1997 .

RSA holder-protection standards has the same meaning as in the Retirement Savings Accounts Regulations 1997 .

Part 9 -- Modifications relating to periodic statements for superannuation entities and RSA providers

   

9.1  After subsection 1017C(7)

insert

          (7A)  If:

                     (a)  a concerned person requests information under subsection (2) or (3) in relation to a facility, under the concerned person's existing holding of a superannuation product, to modify:

                              (i)  an investment strategy; or

                             (ii)  a contribution level; or

                            (iii)  insurance coverage; and

                     (b)  the information has not already been given in a periodic statement or in accordance with other periodic reporting requirements under Division 3;

it is sufficient compliance with a requirement imposed by this section if the responsible person provides an up to date Product Disclosure Statement that includes information on the ability and effect of making the modification.

Part 10 -- Modifications relating to ongoing disclosure of material changes and significant events in relation to superannuation products and RSAs

   

10.1  After subsection 1017B(5)

insert

Provision of advice before event

          (5A)  For a superannuation product or an RSA product, if a product holder would reasonably be expected to be informed of:

                     (a)  a decision of the issuer; or

                     (b)  the winding-up or termination of the superannuation entity;

before it occurs, the issuer must give the product holder information about the event as soon as practicable after it becomes reasonable for the issuer to expect that the event will happen (except that the information does not need to be given more than 3 months before the expected date of the event).

Changes to governing rules or terms and conditions

          (5B)  For subsections 1017B(5), (6) and (7) a reference to an event includes the following:

                     (a)  a change to the governing rules of a superannuation entity (other than a change that gives effect to a payment split) of a kind that has an adverse effect on:

                              (i)  the amount of the relevant financial product; or

                             (ii)  the benefits to which the holder of the relevant financial product may become entitled; or

                            (iii)  the circumstances in which the benefits to which the holder of the relevant financial product may become entitled would become payable;

                     (b)  a change to the terms and conditions of an RSA (other than a change that gives effect to a payment split) of a kind that has an adverse effect on:

                              (i)  the amount of the RSA; or

                             (ii)  the benefits to which the RSA holder may become entitled; or

                            (iii)  the circumstances in which the benefits to which the RSA holder may become entitled would become payable;

                     (c)  any other change in relation to an RSA, caused by any other act carried out or consented to by the issuer, of a kind that has an adverse effect on:

                              (i)  the amount of the RSA; or

                             (ii)  the benefits to which the RSA holder may become entitled; or

                            (iii)  the circumstances in which the benefits to which the RSA holder may become entitled would become payable.

Notice of non-compliance

          (5C)  If the issuer of a superannuation product receives a notice of non-compliance, the issuer must give to each product holder:

                     (a)  a statement of the circumstances (including details of the non-compliance) that gave rise to the issue of the notice; and

                     (b)  a statement of the effect on the fund of the issue of the notice (including details of the effect on the entity's taxation position); and

                     (c)  details of action that the issuer has taken, or proposes to take, to have the entity become a complying fund or a pooled superannuation trust for the purposes of Division 2 of Part 5 of the Act.

          (5D)  For subsection (5C), a notice of non-compliance means a notice issued under section 40 of the SIS Act to the trustee of a fund stating that the fund is not a complying fund or a pooled superannuation trust.

Fund and RSA transfers

          (5E)  For subsections (5), (6) and (7), a reference to an event includes:

                     (a)  in relation to a superannuation product:

                              (i)  the transfer of a member to a different category of membership or to a different fund; and

                             (ii)  the transfer of the benefits of a member to an RSA or EPSSS (otherwise than under a payment split); and

                     (b)  in relation to an RSA product--the transfer of an amount of an RSA (otherwise than under a payment split) to:

                              (i)  another RSA offered by an RSA product issuer; or

                             (ii)  a superannuation entity; or

                            (iii)  an EPSSS.

10.2  After subsection 1017B(9)

insert

           (10)  This section does not apply to a change or event in relation to a superannuation product or an RSA product that relates to a payment split in respect of the product.

           (11)  This section does not apply to a change or event in relation to a superannuation product or an RSA product if the change or event happens because of a transfer in accordance with paragraph 6.29(1)(ba) of the Superannuation Industry (Supervision) Regulations 1994 in respect of the product.

Part 11 -- Modifications relating to charges for information requested

   

11.1  After subsection 1017C(8)

insert

          (8A)  The obligation of a responsible person under this section to give information on request by a person arises only if the person pays the amount specified by the responsible person as the charge for giving the information.

          (8B)  The amount of the charge must not exceed the reasonable cost to the responsible person of giving the information (including all reasonably related costs--for example, costs of searching for, obtaining and collating the information).

          (8C)  A member who acts as a representative for or on behalf of a policy committee is not liable to any charge for information given to the member in that capacity.

          (8D)  In the case of information to be supplied to a concerned person under Subdivision 5.9 of Part 7.9 of the Corporations Regulations 2001 , a charge may be made only if:

                     (a)  the person to whom the information is to be given has requested the information; and

                     (b)  the person had been given the same information during the period of 12 months immediately preceding the date on which the request is made.

Part 12 -- Modifications relating to information when member leaves a fund

   

12.1  After subsection 1017D(3)

insert

          (3A)  For a superannuation product or an RSA product, the periodic statement in relation to the reporting period mentioned in paragraph 1017D(2)(d) must be given as soon as the issuer becomes aware that that person or another person (the former product holder ) has ceased to hold the product, and, in particular, the issuer must make reasonable efforts to give the information within 1 month after becoming aware that the former product holder has ceased to hold the product.

          (3B)  The issuer of a superannuation product or an RSA product must make all reasonable efforts:

                     (a)  to give the information about the amount of insured death or disability benefits to which the former product holder may have been entitled; and

                     (b)  to give the information about a continuation option (if any) applying to those benefits (as mentioned in either paragraph 7.9.54(b) or 7.9.65(b) of the Corporations Regulations 2001 ) in a reasonable time before the option lapses.

          (3C)  Subject to subsection (3D), if a person ceases to hold a superannuation product or RSA product:

                     (a)  after the end of the completed reporting period (the completed period ); and

                     (b)  before the periodic report is issued for that period;

the information required by this section to be given to or in relation to the person may be given in respect of the period consisting of the completed period and the period mentioned in paragraph 1017D(2)(d) instead of the period in respect of the person's periodic statement for the period mentioned in paragraph 1017D(2)(d).

          (3D)  Subsection (3C) does not apply if the period mentioned in paragraph 1017D(2)(d) is greater than:

                     (a)  for a particular superannuation product--6 months; or

                     (b)  for a particular RSA product--3 months.

Part 13 -- Modifications relating to exceptions to exit reporting period provisions

   

13.1  After subsection 1017D(7)

insert

             (8)  An RSA provider need not give information under this section to the holder of an RSA product who is transferring the amount of the RSA product to another RSA, a superannuation entity or an EPSSS if:

                     (a)  the RSA holder has received sufficient information under Subdivision 5.8 of Part 7.9 of the Corporations Regulations 2001 to enable the RSA holder to understand the effect of the transfer; and

                     (b)  the RSA provider reasonably believes that the RSA holder does not need the information because the RSA holder has received or will receive from the RSA institution, or the trustee of the superannuation entity or EPSSS to which the amount is being transferred, information relevant to the RSA holder in respect of the exit reporting period, to the same general effect as that required under Subdivisions 5.2 and 5.3 of Part 7.9 of the Corporations Regulations 2001 .

             (9)  A superannuation product provider need not give information under this section to the holder of a superannuation product who is transferring to another superannuation entity or to an EPSSS, or whose benefits are being transferred into an RSA if:

                     (a)  the product holder has received sufficient information under Subdivision 5.8 of Part 7.9 of the Corporations Regulations 2001 to enable the product holder to understand the effect of the transfer; and

                     (b)  the superannuation product provider reasonably believes that the product holder does not need the information because the product holder has received or will receive, from the RSA institution, or from the trustee of the superannuation entity or EPSSS to which the amount is being transferred, information relevant to the product holder in respect of the exit reporting period, to the same general effect as that required under Subdivision 5.2 of Part 7.9 of the Corporations Regulations 2001 .

Part 14 -- Modifications relating to obligation to give information about financial products

   

14.1  After subsection 1017B(7)

insert

          (7A)  Subject to subsections (7B) and (7C), this section does not apply if:

                     (a)  the responsible person has an address for a concerned person, and:

                              (i)  is satisfied on reasonable grounds that that address is incorrect; and

                             (ii)  has taken reasonable steps to locate the concerned person but has been unable to do so; or

                     (b)  the responsible person has no address for the concerned person, and:

                              (i)  has been unable to obtain an address for the concerned person; and

                             (ii)  has taken reasonable steps to locate the concerned person, but has been unable to do so.

          (7B)  If the responsible person has refrained, in reliance on subsection (7A), from giving information to a concerned person, the responsible person must give information to the concerned person if the responsible person later becomes aware of the concerned person's address or location.

          (7C)  Subsection (7B) applies only in respect of information that the responsible person becomes liable to give to the concerned person after becoming aware of the concerned person's address or location.

14.2  After subsection 1017C(8)

insert

          (8A)  Subject to subsections (8B) and (8C), this section does not apply if:

                     (a)  the responsible person has an address for a concerned person, and:

                              (i)  is satisfied on reasonable grounds that that address is incorrect; and

                             (ii)  has taken reasonable steps to locate the concerned person but has been unable to do so; or

                     (b)  the responsible person has no address for the concerned person, and:

                              (i)  has been unable to obtain an address for the concerned person; and

                             (ii)  has taken reasonable steps to locate the concerned person, but has been unable to do so.

          (8B)  If the responsible person has refrained, in reliance on subsection (8A), from giving information to a concerned person, the responsible person must give information to the concerned person if the responsible person later becomes aware of the concerned person's address or location.

          (8C)  Subsection (8B) applies only in respect of information that the responsible person becomes liable to give to the concerned person after becoming aware of the concerned person's address or location.

14.3  After subsection 1017D(7)

insert

             (8)  Subject to subsections (9) and (10), this section does not apply if:

                     (a)  the issuer has an address for a holder, and:

                              (i)  is satisfied on reasonable grounds that that address is incorrect; and

                             (ii)  has taken reasonable steps to locate the holder but has been unable to do so; or

                     (b)  the issuer has no address for the holder, and:

                              (i)  has been unable to obtain an address for the holder; and

                             (ii)  has taken reasonable steps to locate the holder, but has been unable to do so.

             (9)  If the issuer has refrained, in reliance on subsection (8), from giving information to a holder, the issuer must give information to the holder if the issuer later becomes aware of the holder's address or location.

           (10)  Subsection (9) applies only in respect of information that the issuer becomes liable to give to the holder after becoming aware of the holder's address or location.

14.4  After subsection 1017DA(3)

insert

          (3A)  Subject to subsections (3B) and (3C), this section does not apply if:

                     (a)  the trustee has an address for a holder or former holder, and:

                              (i)  is satisfied on reasonable grounds that that address is incorrect; and

                             (ii)  has taken reasonable steps to locate the holder or former holder but has been unable to do so; or

                     (b)  the trustee has no address for the holder or former holder, and:

                              (i)  has been unable to obtain an address for the holder or former holder; and

                             (ii)  has taken reasonable steps to locate the holder or former holder, but has been unable to do so.

          (3B)  If the trustee has refrained, in reliance on subsection (3A), from giving information to a holder or former holder, the trustee must give information to the holder or former holder if the trustee later becomes aware of the holder's or former holder's address or location.

          (3C)  Subsection (3B) applies only in respect of information that the trustee becomes liable to give to the holder or former holder after becoming aware of the holder's or former holder's address or location.

Part 15 -- Modifications for confirmation of transactions

   

15.1  After subsection 1017F(5A)

insert

          (5B)  Despite subsection (5), if:

                     (a)  the cost of a transaction (including taxes and charges) is not known at the time at which confirmation of the transaction would be required to be given; and

                     (b)  all of the other information required under subsection (7) in relation to confirmation of the transaction is known at that time;

the confirmation of the transaction is to be provided in accordance with subsection (5C).

          (5C)  Confirmation is to be provided as follows:

                     (a)  all of the information required, except for the cost of the transaction, is to be provided as soon as practicable in accordance with subsection (5);

                     (b)  the cost of the transaction may be provided in whichever of the following can be done first:

                              (i)  a secondary confirmation notice provided as soon as practicable after the cost is known;

                             (ii)  a standing facility mentioned in paragraph 1017F(5)(b);

                            (iii)  the first periodic report under section 1017D after the cost is known.

Part 16 -- Modifications relating to reporting periods

   

16.1  Paragraph 1017D(2)(a)

substitute

                     (a)  each reporting period lasts for:

                              (i)  a period, not exceeding 1 year, fixed by the issuer; or

                             (ii)  a longer period fixed by ASIC on the application of the issuer to which the period relates;

Part 17 -- Modifications relating to application forms for specified superannuation products

   

17.1  After subsection 1012B(4)

insert

          (4A)  A regulated person:

                     (a)  need not give a client a Product Disclosure Statement for a financial product at or before the time when it would otherwise be required to be given; and

                     (b)  must give the client the Product Disclosure Statement as soon as is reasonably practical and in any event within 3 months after the product is issued to the client; and

                     (c)  need not give the client the Product Disclosure Statement at all if the client ceases to be a member of the superannuation fund concerned before the regulated person is required to give the Product Disclosure Statement under paragraph (b).

          (4B)  Subsections (3), (4) and (4A) apply only in respect of:

                     (a)  in the case of an eligible rollover fund:

                              (i)  persons who become members of the fund by being issued with a superannuation interest under section 243 of the SIS Act; and

                             (ii)  persons who become members of the fund in circumstances mentioned in section 89 of the RSA Act; and

                     (b)  in the case of a public offer superannuation fund that is not a successor fund in relation to the financial product issued to the client:

                              (i)  standard employer-sponsored members of the fund; and

                             (ii)  persons who become members of the fund in circumstances mentioned in regulation 7.9.06B of the Corporations Regulations 2001 .

17.2  After subsection 1012I(2B)

insert

          (2C)  If a trustee of an EPSSS:

                     (a)  applies, in circumstances mentioned in regulation 7.9.06B of the Corporations Regulations 2001 , on behalf of a person for the issue of an interest in a relevant superannuation entity; and

                     (b)  has not previously applied in those circumstances for the issue of an interest in that entity on behalf of any person;

the person (the issuer ) who is to issue the interest to the person must, at or before the time when the interest is issued to the person, give the trustee a Product Disclosure Statement in accordance with this Division for the interest.

Part 18 -- Modification of Part 7.9 of the Act--New Zealand offer documents replace Product Disclosure Statements where an offer relates to interests in a New Zealand managed investment scheme

   

18.1  After subsection 1012D(9D)

insert

Recommendation, issue or sale situation--New Zealand mutual recognition scheme for securities

          (9E)  In a recommendation situation, issue situation or sale situation, the regulated person does not have to give the client a Product Disclosure Statement for a financial product if:

                     (a)  the regulated person reasonably believes that there is a recognised offer under Chapter 8 in relation to offer of the financial product; and

                     (b)  the financial product is an interest in a managed investment scheme governed by the laws of New Zealand; and

                     (c)  the regulated person has provided the client the documents and information required to accompany that offer by the Financial Markets Conduct Act 2013 of New Zealand and the Financial Markets Conduct Regulations 2014 of New Zealand; and

                     (d)  the regulated person has provided the client any warning statement or details prescribed under section 1200E in relation to the offer.

           (9F)  For paragraph (9E)(c), section 1015C applies to the providing of documents and information, as if the documents and information were a Statement.

          (9G)  For paragraph (9E)(d), section 1015C applies to the providing of warning statement or details prescribed under section 1200E, as if the warning statement or details were a Statement.

Part 19 -- Modifications for carbon units, Australian carbon credit units and eligible international emissions units

   

19.1  Subsections 1012D(1) to (3), including the subheadings

substitute

Recommendation, issue or sale situation for carbon unit--statements on Clean Energy Regulator's website

             (1)  Subject to subsections (2) and (3), in a recommendation situation, issue situation or sale situation for a carbon unit, the regulated person:

                     (a)  does not have to give the client a Product Disclosure Statement; and

                     (b)  must inform the client that the client should consider each statement about the carbon unit that is mentioned in section 202 of the Clean Energy Act 2011 .

Recommendation, issue or sale situation for carbon unit--client has considered statements on Clean Energy Regulator's website

             (2)  In a recommendation situation, issue situation or sale situation for a carbon unit, the regulated person does not have to inform the client as described in paragraph (1)(b) if the regulated person believes, on reasonable grounds, that the client has already considered each statement about the carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 .

Recommendation, issue or sale situation for carbon unit--specified persons

             (3)  In a recommendation situation, issue situation or sale situation for a carbon unit, the regulated person does not have to inform the client as described in paragraph (1)(b) if the person is:

                     (a)  the Clean Energy Regulator; or

                     (b)  the Clean Development Mechanism Executive Board; or

                     (c)  the government of a country other than Australia; or

                     (d)  an authority acting on behalf of the government of a country other than Australia.

Recommendation, issue or sale situation for Australian carbon credit unit--statements on Clean Energy Regulator's website

          (3A)  Subject to subsections (3B) and (3C), in a recommendation situation, issue situation or sale situation for an Australian carbon credit unit, the regulated person:

                     (a)  does not have to give the client a Product Disclosure Statement; and

                     (b)  must inform the client that the client should consider each statement about the Australian carbon credit unit that is mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 .

Recommendation, issue or sale situation for Australian carbon credit unit--client has considered statements on Clean Energy Regulator's website

          (3B)  In a recommendation situation, issue situation or sale situation for an Australian carbon credit unit, the regulated person does not have to inform the client as described in paragraph (3A)(b) if the regulated person believes, on reasonable grounds, that the client has already considered each statement about the Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 .

Recommendation, issue or sale situation for Australian carbon credit unit--specified persons

          (3C)  In a recommendation situation, issue situation or sale situation for an Australian carbon credit unit, the regulated person does not have to inform the client as described in paragraph (3A)(b) if the person is:

                     (a)  the Clean Energy Regulator; or

                     (b)  the Clean Development Mechanism Executive Board; or

                     (c)  the government of a country other than Australia; or

                     (d)  an authority acting on behalf of the government of a country other than Australia.

Recommendation, issue or sale situation for eligible international emissions unit--statements on Clean Energy Regulator's website

          (3D)  Subject to subsections (3E) and (3F), in a recommendation situation, issue situation or sale situation for an eligible international emissions unit, the regulated person:

                     (a)  does not have to give the client a Product Disclosure Statement; and

                     (b)  must inform the client that the client should consider each statement about the eligible international emissions unit that is mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011 .

Recommendation, issue or sale situation for eligible international emissions unit--client has considered statements on Clean Energy Regulator's website

          (3E)  In a recommendation situation, issue situation or sale situation for an eligible international emissions unit, the regulated person does not have to inform the client as described in paragraph (3D)(b) if the regulated person believes, on reasonable grounds, that the client has already considered each statement about the eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011 .

Recommendation, issue or sale situation for eligible international emissions unit--specified persons

           (3F)  In a recommendation situation, issue situation or sale situation for an eligible international emissions unit, the regulated person does not have to inform the client as described in paragraph (3D)(b) if the person is:

                     (a)  the Clean Energy Regulator; or

                     (b)  the Clean Development Mechanism Executive Board; or

                     (c)  the government of a country other than Australia; or

                     (d)  an authority acting on behalf of the government of a country other than Australia.

19.2  Subsection 1012D(5)

omit

give the client a Product Disclosure Statement

insert

inform the client as described in paragraph (1)(b), (3A)(b) or (3D)(b)

19.3  Subsection 1012D(6)

omit

give the client a Product Disclosure Statement

insert

inform the client as described in paragraph (1)(b), (3A)(b) or (3D)(b)

19.4  Subsections 1012D(7) to (10), including the subheading

omit

19.5  Subsection 1012IA(1), definition of regulated acquisition

substitute

regulated acquisition means an acquisition of a financial product pursuant to an instruction by the client under a custodial arrangement, being an acquisition:

                     (a)  by way of issue by the issuer (the regulated person ); or

                     (b)  pursuant to a sale by a person (the regulated person ) in circumstances:

                              (i)  described in subsection 1012C (5) or (8); or

                             (ii)  to which subsection 1012B (3), 1012C (3) or 1012C (6) would apply if those subsections were applicable in relation to a carbon unit, an Australian carbon credit unit or an eligible international emissions unit.

19.6  Subsection 1012IA(2), subheading

substitute

Obligation on provider to inform client about statements on Clean Energy Regulator's website

19.7  Subsection 1012IA(2)

omit

must give the client a Product Disclosure Statement for the product if a Product Disclosure Statement for the product would

insert

must inform the client that the client should consider each statement about the carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 , or each statement about the Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 , or each statement about the eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011 , if the statement would

19.8  Subsection 1012IA(3), subheading

substitute

Determining whether client should be informed about statements on Clean Energy Regulator's website for an equivalent direct acquisition

19.9  Subsection 1012IA(3)

omit

give the client a Product Disclosure Statement for the financial product

insert

inform the client that the client should consider each statement about the carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 , or each statement about the Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 , or each statement about the eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011

19.10  Paragraph 1017E(1)(b)

substitute

                     (b)  a seller (the product provider ) of a carbon unit in relation to which the seller has informed the client that the client should consider each statement about the carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 ; or

                   (ba)  a seller (the product provider ) of an Australian carbon credit unit in relation to which the seller has informed the client that the client should consider each statement about the Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 ; or

                   (bb)  a seller (the product provider ) of an eligible international emissions unit in relation to which the seller has informed the client that the client should consider each statement about the eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011 ;

19.11  Subsection 1017G(1)

substitute

             (1)  This section does not apply to:

                     (a)  the Regulator; or

                     (b)  the CDM Executive Board; or

                     (c)  the government of a country other than Australia; or

                     (d)  an authority acting on behalf of the government of a country other than Australia.

          (1A)  If:

                     (a)  carbon units are, or have been, available for acquisition (whether by issue or sale) by a person or persons as retail clients; and

                     (b)  the issue or sale of the carbon units is not covered by an Australian financial services licence;

                   the issuer and any regulated person who is required, under subsection 1012D (1), to inform a client that the client should consider each statement about the carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 , must both have a dispute resolution system complying with subsection (2).

Note 1:       If the issue of the carbon units is covered by an Australian financial services licence, the requirement to have a dispute resolution system relating to the issue of the units is imposed by paragraph 912A(1)(g).

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

          (1B)  If:

                     (a)  Australian carbon credit units are, or have been, available for acquisition (whether by issue or sale) by a person or persons as retail clients; and

                     (b)  the issue or sale of the Australian carbon credit units is not covered by an Australian financial services licence;

                   the issuer and any regulated person who is required, under subsection 1012D(3A), to inform a client that the client should consider each statement about the Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 , must both have a dispute resolution system complying with subsection (2).

Note 1:       If the issue of the Australian carbon credit units is covered by an Australian financial services licence, the requirement to have a dispute resolution system relating to the issue of the units is imposed by paragraph 912A(1)(g).

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

          (1C)  If:

                     (a)  eligible international emissions units are, or have been, available for acquisition (whether by issue or sale) by a person or persons as retail clients; and

                     (b)  the issue or sale of the eligible international emissions units is not covered by an Australian financial services licence;

                   the issuer and any regulated person who is required, under subsection 1012D(3D), to inform a client that the client should consider each statement about the eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011 , must both have a dispute resolution system complying with subsection (2).

Note 1:       If the issue of the eligible international emissions units is covered by an Australian financial services licence, the requirement to have a dispute resolution system relating to the issue of the units is imposed by paragraph 912A(1)(g).

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

19.12  Section 1018A, heading

substitute

1018A  Advertising or other promotional material for financial product must refer to statements on Clean Energy Regulator's website

19.13  Subsection 1018A(1), subheading

substitute

Advertisements and promotional material must identify issuer (or issuer and seller) and refer to statements on Clean Energy Regulator's website

19.14  Subsection 1018A(1)

omit

if a particular financial product is available for acquisition by persons as retail clients (whether or not it is also available for acquisition by persons as wholesale clients) by way of issue, or pursuant to sale offers to which section 1012C applies or will apply,

insert

in an issue situation or sale situation for a carbon unit, an Australian carbon credit unit or an eligible international emissions unit that is available for acquisition by persons as retail clients (whether or not it is also available for acquisition by persons as wholesale clients),

19.15  Subparagraph 1018A(1)(c)(ii)

omit

to which section 1012C applies or will apply

insert

to which paragraphs 1012C(3)(b) and (4)(c), and subsection 1012C(6), would apply if section 1012C were applicable in relation to a carbon unit, an Australian carbon credit unit or an eligible international emissions unit

19.16  Paragraphs 1018A(1)(d) and (e)

substitute

                     (d)  informs the person that the person should consider:

                              (i)  each statement about the carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 in deciding whether to acquire, or to continue to hold, the carbon unit; or

                             (ii)  each statement about the Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 in deciding whether to acquire, or to continue to hold, the Australian carbon credit unit; or

                            (iii)  each statement about the eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011 in deciding whether to acquire, or to continue to hold, the eligible international emissions unit.

19.17  Subsection 1018A(2)

omit

if a particular financial product, or proposed financial product, is not available for acquisition by persons as retail clients but it is reasonably likely that the product will become so available (whether or not it is, or will also become, available for acquisition by persons as wholesale clients) by way of issue, or pursuant to sale offers to which section 1012C will apply,

insert

in an issue situation or sale situation for a financial product that is a carbon unit, an Australian carbon credit unit or an eligible international emissions unit and is not available for acquisition by persons as retail clients, but is reasonably likely to become so available (whether or not it is, or will also become, available for acquisition by persons as wholesale clients),

19.18  Subparagraph 1018A(2)(c)(ii)

omit

to which section 1012C will apply

insert

to which paragraphs 1012C(3)(b) and (4)(c), and subsection 1012C(6), would apply if section 1012C were applicable in relation to a carbon unit, an Australian carbon credit unit or an eligible international emissions unit

19.19  Paragraphs 1018A(2)(d) to (f)

substitute

                     (d)  informs the person that:

                              (i)  a statement about the carbon unit is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 ; or

                             (ii)  a statement about the Australian carbon credit unit is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 ; or

                            (iii)  a statement about the eligible international emissions unit is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011 ; and

                     (e)  informs the person that the person should consider each statement about the carbon unit, Australian carbon credit unit or eligible international emissions unit that is published on that website in deciding whether to acquire, or to continue to hold, the carbon unit, Australian carbon credit unit or eligible international emissions unit.

19.20  Subsection 1018A(3)

omit

distribute a Product Disclosure Statement

insert

inform a person that the person should consider each statement about the carbon unit, Australian carbon credit unit or eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 , section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011

19.21  Subparagraph 1018A(4)(c)(i)

substitute

                              (i)  does not contain information that materially affects affairs of the issuer, other than information about the carbon unit, Australian carbon credit unit or eligible international emissions unit that is published:

                                     (A)   on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 , section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011 ; or

                                      (B)   in a disclosure document that has been lodged with ASIC; or

                                      (C)   in an annual report or in a notice or report referred to in paragraph (a) or (b); and

19.22  Subparagraphs 1018A(4)(d)(i) and (ii)

substitute

                              (i)  information about the carbon unit, Australian carbon credit unit or eligible international emissions unit that is published:

                                     (A)   on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 , section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011 ; or

                                      (B)   in a disclosure document that has been lodged with ASIC; or

19.23  Paragraph 1020D(b)

substitute

                     (b)  if the acquisition occurs in circumstances in which the party is required by a provision of this Part to have been informed that the party should consider each statement about the carbon unit, Australian carbon credit unit or eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 , section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011 --taken to have notice of any contract, document or matter not specifically referred to in those statements.

19.24  Paragraph 1020E(7)(b)

omit

the document, advertisement or statement

insert

the statement or advertisement

19.25  Section 1021C, heading

substitute

1021C  Offence of failing to refer to statements on Clean Energy Regulator's website

19.26  Subparagraph 1021C(1)(a)(i)

substitute

                              (i)  is required by a provision of this Part to inform a person that the person should consider each statement about a carbon unit, an Australian carbon credit unit or an eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 , section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011 (the required statement ); or

19.27  Subparagraph 1021C(1)(b)(i)

substitute

                              (i)  if subparagraph (a)(i) applies--inform the person that the person should consider each required statement; or

19.28  Subparagraph 1021C(3)(a)(i)

substitute

                              (i)  is required by a provision of this Part to inform a person that the person should consider each statement about a carbon unit, an Australian carbon credit unit or an eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 , section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011 (the required statement ); or

19.29  Subparagraph 1021C(3)(b)(i)

substitute

                              (i)  if subparagraph (a)(i) applies--inform the person that the person should consider each required statement; or

19.30  Paragraph 1021C(4)(b)

substitute

                     (b)  the representative's failure to inform the person that the person should consider each required statement occurred because the representative was acting in reliance on that information or those instructions; and

19.31  Section 1021G

omit

to give or communicate disclosure documents or statements as and when required by this Part.

insert

to inform a person that the person should consider each statement about a carbon unit, an Australian carbon credit unit or an eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 , section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011 as and when required by this Part.

19.32  After paragraph 1022B(1)(ac)

insert

                   (ad)  a person:

                              (i)  is required to inform another person (the client ) that the client should consider each statement about a carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 ; and

                             (ii)  does not inform the client by the time the person is required to do so; or

                    (ae)  a person:

                              (i)  is required to inform another person (the client ) that the client should consider each statement about an Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 ; and

                             (ii)  does not inform the client by the time the person is required to do so; or

                    (af)  a person:

                              (i)  is required to inform another person (the client ) that the client should consider each statement about an eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011 ; and

                             (ii)  does not inform the client by the time the person is required to do so; or



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