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CORPORATIONS REGULATIONS 2001 - SCHEDULE 10BA

Modifications of the Act relating to Short-Form Product Disclosure Statements

(regulation 7.9.61AA)

Part 1 -- Modifications of Part 7.7 of the Act

   

1.1  Paragraph 949A(2)(c)

after

Part 7.9)

insert

or a Short-Form PDS (see Division 3A of Part 7.9)

Part 2 -- Modifications of Part 7.8 of the Act

   

2.1  Paragraphs 992A(3)(c), (d) and (e)

after

Statement

insert

or a Short-Form PDS

Part 3 -- Modifications of Part 7.9 of the Act

   

3.1  After Division 3 of Part 7.9

insert

Division 3A--Short-Form Product Disclosure Statements

1017H  Short-Form PDS

Short-Form PDS may be given instead of a Product Disclosure Statement in most cases

             (1)  If a regulated person is required or obliged by this Act to give a Product Disclosure Statement for a financial product (but see subsection (4)) to another person, the regulated person may instead provide a Short-Form PDS for the product.

Product Disclosure Statement must be given in certain circumstances

             (2)  However, if the regulated person is requested by the other person to provide the Product Disclosure Statement the regulated person must provide the Product Disclosure Statement.

Responsible person

             (3)  The responsible person for a Short-Form PDS for a financial product is the person who is the responsible person for the Product Disclosure Statement for the product.

Application of subsection (1)

             (4)  Subsection (1) does not apply to a general insurance product.

1017I  Contents of a Short-Form PDS

Contents

             (1)  The Short-Form PDS for a financial product must contain the following:

                     (a)  a summary of the statements and information referred to in paragraphs 1013D(1)(a), (b), (c), (d), (e), (g) and (i) that were included in a Product Disclosure Statement for the product;

                     (b)  a statement:

                              (i)  notifying the retail client in relation to the product that the client may ask for the Product Disclosure Statement for the product; and

                             (ii)  setting out the means by which the client may ask for the Product Disclosure Statement.

Extra contents for certain products

             (2)  If the Short-Form PDS is for a superannuation product or a managed investment product the Short-Form PDS must also set out in full the information in:

                     (a)  any regulations made for the purposes of paragraph 1013D(4)(c) relating to the details of fees and costs; and

                     (b)  any regulations made for the purposes of paragraph 1015C(5)(b) that relate to the presentation, structure and format of information required by paragraphs 1013D(1)(d) and (e).

Other information may be included in Short-Form PDS

             (3)  The Short-Form PDS may also:

                     (a)  include other information; and

                     (b)  refer to other information that is set out in the Product Disclosure Statement or Financial Services Guide for the product.

Reference to identify incorporated information

             (4)  If under paragraph (3)(b) information is referred to in the Short-Form PDS, the reference must identify the document or the part of the document that contains the information.

Incorporated document forms part of Short-Form PDS

             (5)  The document or part referred to in subsection (4) is taken to be included in the Short-Form PDS.

Rule as to statements in a Short-Form PDS

             (6)  If a Product Disclosure Statement for a financial product may include a statement made by a person (see section 1013K), the statement may also be included in the Short-Form PDS for the product.

1017J  Title of Short-Form Product Disclosure Statement

             (1)  The title "Short-Form Product Disclosure Statement" must be used on the cover of, or at or near the front of, a Short-Form PDS.

             (2)  In any other part of a Short-Form PDS, "Short-Form Product Disclosure Statement" may be abbreviated to "Short-Form PDS".

1017K  References in sections to Product Disclosure Statement to include references to Short-Form PDS

                   The following provisions apply to a Short-Form PDS and so apply as if a reference to a Product Disclosure Statement in the provisions included a reference to a Short-Form PDS:

                     (a)  sections 942DA, 947E, 1012F, 1012G, 1012H, 1012J, 1013A, 1013G, 1013H, 1013I, 1013L 1013M, 1016A, 1016B, 1016C, 1016D, 1016E and 1017A and subsections 1013C(3) and 1013C(4) to (7);

                     (b)  any regulations made under those sections or subsections;

                     (c)  any regulations that modify those sections or subsections.

Division 3B--Supplementary Short-Form Product Disclosure Statements

1017L  What a Supplementary Short-Form Product Disclosure Statement is

                   A Supplementary Short-Form PDS is a document by which a person who has prepared a Short-Form PDS can:

                     (a)  correct a misleading or deceptive statement in the Short-Form PDS; or

                     (b)  correct an omission from the Short-Form PDS of information it is required to contain; or

                     (c)  update, or add to, the information contained in the Short-Form PDS; or

                     (d)  change a statement of a kind referred to in paragraph 1016E(1)(a) or (b) (as applied by section 1017K).

1017M  Title of Supplementary Short-Form Product Disclosure Statement

             (1)  The title "Supplementary Short-Form Product Disclosure Statement" must be used on the cover of, or at or near the front of, a Supplementary Short-Form PDS.

             (2)  In any other part of a Supplementary Short-Form PDS, "Supplementary Short-Form Product Disclosure Statement" may be abbreviated to "Supplementary Short-Form PDS".

1017N  Form of Supplementary Short-Form Product Disclosure Statement

                   At the beginning of a Supplementary Short-Form PDS there must be:

                     (a)  a statement that it is a Supplementary Short-Form PDS; and

                     (b)  an identification of the Short-Form PDS that it supplements; and

                     (c)  a statement that it is to be read together with that Short-Form PDS and any other specified Supplementary Short-Form PDS.

1017O  Effect of giving person a Supplementary Short-Form Product Disclosure Statement

                   If:

                     (a)  a person is given a Short-Form PDS; and

                     (b)  at the same time, or later, they are given a Supplementary Short-Form PDS that supplements the Short-Form PDS;

the Short-Form PDS is taken, from when the Supplementary Short-Form PDS is given to the person, to include the information and statements contained in the Supplementary Short-Form PDS.

1017P  Situation in which only a Supplementary Short-Form Product Disclosure Statement need be given

                   If:

                     (a)  apart from this section, a person would be required to give another person (the client ) a Product Disclosure Statement (the new PDS ) relating to a financial product; and

                     (b)  the client has, because of some previous conduct, already received a Short-Form PDS (the earlier Short-Form PDS ) relating to the financial product; and

                     (c)  the earlier Short-Form PDS contains summaries of some, but not all, of the information that the new PDS is required to contain (see paragraph 1017I(1)(a));

the person may, instead of giving the client the new PDS, give the client a Supplementary Short-Form PDS that contains summaries of the additional information.

1017Q  Application of other provisions in relation to Supplementary Short-Form Product Disclosure Statements

                   The following provisions apply in relation to a Supplementary Short-Form PDS in the same way as those provisions apply to a Product Disclosure Statement:

                     (a)  sections 1013A, 1013G, 1013H, 1013K and subsections 1013C(3) and 1013C(4) to (7);

                     (b)  any regulations made under those sections or subsections;

                     (c)  any regulations that modify those sections or subsections.

3.2  Section 1015A

substitute

1015A  Subdivision applies to certain Disclosure Statements

             (1)  Subject to subsection (2):

                     (a)  this Subdivision applies to:

                              (i)  a Product Disclosure Statement; or

                             (ii)  a Short-Form PDS; or

                            (iii)  a Supplementary PDS; or

                            (iv)  a Supplementary Short-Form PDS; and

                     (b)  each of those kinds of documents is referred to in this Subdivision as a Statement .

             (2)  However:

                     (a)  section 1015B does not apply to a Short-Form PDS or a Supplementary Short-Form PDS; and

                     (b)  in that section, Statement does not include a Short-Form PDS or a Supplementary Short-Form PDS.

3.3  Subsection 1015B(1) (after the note)

insert

Note 2:       Subsection 1015A(2) provides that Statement in this section does not include a Short-Form PDS or a Supplementary Short-Form PDS.

3.4  Paragraph 1018A(1)(e)

after

Statement

insert

or Short-Form PDS, if available,

3.5  Paragraph 1018A(2)(f)

after

Statement

insert

or Short-Form PDS, if available,

3.6  Subsection 1018A(3)

after

Statement

insert

or Short-Form PDS

3.7  Subparagraph 1018A(4)(d)(i)

after

Statement

insert

or Short-Form PDS

3.8  Paragraph 1020D(b)

omit

or Supplementary Product Disclosure Statement

insert

, Supplementary Product Disclosure Statement, Short-Form PDS or Supplementary Short-Form PDS

3.9  After paragraph 1021B(1)(b) (definition of defective )

insert

                   (ba)  if it is a Short-Form PDS--there is an omission from the Short-Form PDS of material required by section 1017I; or

3.10  After paragraph 1021B(1)(c) (definition of defective )

insert

                    (ca)  if it is a Supplementary Short-Form PDS that is given for the purposes of section 1017P--there is an omission from the Short-Form PDS of material required by that section; or

3.11  Subsection 1021B(1), definition of disclosure document or statement , after paragraph (b)

insert

                   (ba)  a Short-Form PDS; or

                   (bb)  a Supplementary Short-Form PDS; or

3.12  After subsection 1021C(5)

insert

             (6)  If a person does not give a Product Disclosure Statement for a financial product because the person has given a Short-Form PDS for the product, the person is taken not to contravene this section.

3.13  Paragraph 1021H(1)(a)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a Supplementary Short-Form PDS

3.14  Subparagraph 1021H(1)(b)(i)

after

Product Disclosure Statement

insert

or Short-Form PDS

3.15  Subparagraph 1021H(1)(b)(ii)

omit

; and

insert

; or

3.16  After subparagraph 1021H(1)(b)(ii)

insert

                            (iii)  if it is a Supplementary Short-Form PDS--section 1013G, 1017M or 1017N; and

3.17  After subparagraph 1021J(1)(c)(ii)

insert

                           (iia)  if it is a Short-Form PDS--a direction not to distribute the Short-Form PDS unless it is accompanied by a Supplementary Short-Form PDS that corrects the deficiency;

3.18  After subparagraph 1021J(1)(c)(iii)

insert

                          (iiia)  if it is a Short-Form PDS or a Supplementary Short-Form PDS--a direction not to distribute the Short-Form PDS or Supplementary Short-Form PDS without first altering it in a way that is specified in the direction, being a way that corrects the deficiency and that complies with section 1015E.

3.19  Paragraph 1021K(1)(a)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a Supplementary Short-Form PDS (the disclosure statement )

3. 20   Paragraph 1021K(1)(b)

omit

Product Disclosure Statement or Supplementary Product Disclosure Statement

insert

disclosure statement

3. 21   Subparagraphs 1021K(1)(d)(i), (ii) and (iii)

omit

Product Disclosure Statement or Supplementary Product Disclosure Statement

insert

disclosure statement

3.22  Paragraph 1021L(1)(a)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a Supplementary Short-Form PDS

3.23  Paragraph 1021L(2)(a)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a Supplementary Short-Form PDS (the disclosure statement )

3.24  Subparagraph 1021L(2)(b)(iv)

omit

Product Disclosure Statement or Supplementary Product Disclosure Statement

insert

disclosure statement

3.25  Subparagraphs 1021M(1)(a)(i), (ii), (iii) and (iv)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a Supplementary Short-Form PDS

3.26  Subparagraphs 1021M(3)(a)(i), (ii), (iii) and (iv)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a Supplementary Short-Form PDS

3.27  After paragraph 1022A(1)(b) (definition of defective )

insert

                   (ba)  if it is a Short-Form PDS--there is an omission from the Short-Form PDS of material required by section 1017I; or

3.28  After paragraph 1022A(1)(c) (definition of defective )

insert

                    (ca)  if it is a Supplementary Short-Form PDS that is given for the purposes of section 1017P--there is an omission from the Short-Form PDS of material required by that section; or

3.29  Subsection 1022A(1), definition of disclosure document or statement , after paragraph (b)

insert

                   (ba)  a Short-Form PDS; or

                   (bb)  a Supplementary Short-Form PDS; or

3.30  Subparagraph 1022B(1)(a)(i)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a Supplementary Short-Form PDS

3.31  Subparagraph 1022B(1)(c)(ii)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a Supplementary Short-Form PDS

3.32  Subparagraph 1022B(1)(d)(i)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a Supplementary Short-Form PDS




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