Corporations Act 2001
Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .
View history note
Hide history noteCCH note - modifying legislative instruments: The application of Pt 7.9 is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (Periodic Statement Relief for Quoted Securities) Instrument 2024/14; the ASIC Corporations (mFund) Instrument 2024/18; the ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669 (as amended by ASIC Corporations (Amendment) Instrument 2024/554); the ASIC Corporations (Employee Incentive Schemes - Ongoing Relief) Instrument 2025/169; the ASIC Corporations (31-day Notice Term Deposits) Instrument 2025/172; and the ASIC Corporations (Offers of CHESS Depository Interests) Instrument 2025/180.
The application of Pt 7.9 is also modified by the ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070; the Class Order 14/1262: Relief for 31 Day Notice Term Deposits; and the ASIC Corporations, Credit and Superannuation (Internal Dispute Resolution) Instrument 2020/98.
For other legislative instruments or class orders before 1 January 2022 that affect the application of Pt 7.9, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
CCH note - modifying legislative instruments: The application of Division 2 is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (Foreign Small-Scale Offers) Instrument 2015/362; the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716; the ASIC Corporations (Removing Barriers to Electronic Disclosure) Instrument 2015/649; the ASIC Corporations (Shorter PDS and Delivery of Accessible Financial Products Disclosure by Platform Operators and Superannuation Trustees) Instrument 2022/497; the ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/668; and the ASIC Corporations (Offers of CHESS Depository Interests) Instrument 2025/180.
For legislative instruments or class orders before 1 January 2022 that affect the application of Division 2, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
CCH note - modifying legislative instruments: The application of Subdivision B is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716; the ASIC Corporations (Removing Barriers to Electronic Disclosure) Instrument 2015/649; the ASIC Corporations (Shorter PDS and Delivery of Accessible Financial Products Disclosure by Platform Operators and Superannuation Trustees) Instrument 2022/497; the ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/668; and the ASIC Corporations (Discretions for Setting the Issue Price and Withdrawal Price of Interests in Managed Investment Schemes) Instrument 2023/693.
For legislative instruments or class orders before 1 January 2022 that affect the application of Subdivision B, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
CCH note: This provision is modified by legislative instruments. See the CCH note at the end of the provision for details.
Section sets out issue situations in which Product Disclosure Statement required
1012B(1)
This section sets out situations in which: (a) an offer relating to the issue of a financial product; or (b) the issue of a financial product;
gives rise to an obligation on a regulated person to give another person a Product Disclosure Statement for the product.
1012B(2)
For the purposes of this Act: (a) each of the situations is an issue situation ; and (b) the relevant conduct for that situation is the conduct by the regulated person that gives rise to the obligation to give the Product Disclosure Statement; and (c) the client for that situation is the person to whom the financial product is to be or is issued.
The main issue situations
1012B(3)
A regulated person must give a person a Product Disclosure Statement for a financial product if: (a) the regulated person:
(i) offers to issue the financial product to the person; or
(ii) offers to arrange for the issue of the financial product to the person; or
(b) the financial product is, or is to be, issued to the person as a retail client.
(iii) issues the financial product to the person in circumstances in which there are reasonable grounds to believe that the person has not been given a Product Disclosure Statement for the product; and
The Product Disclosure Statement must be given at or before the time when the regulated person makes the offer, or issues the financial product, to the person and must be given in accordance with this Division.
Note: If a Product Disclosure Statement is given when the offer is made, it will not need to be given again when the product is issued to the person (see subsection 1012D(1) ) unless the Product Disclosure Statement that was given is no longer up to date.
Receiving offer to acquire financial product
1012B(4)
A regulated person must give a person a Product Disclosure Statement for a financial product if: (a) the person makes an offer to the regulated person to acquire the financial product; and (b) the person would acquire the financial product by way of the issue of the product to the person (rather than the transfer of the product to the person); and (c) the financial product is to be issued to the person as a retail client.
The Product Disclosure Statement must be given to the person before the person becomes bound by a legal obligation to acquire the financial product pursuant to the offer and must be given in accordance with this Division.
[ CCH Note: For s 1012B(4A) and (4B), see Corporations Regulations Schedule 10A, Part 17 - Modifications relating to application forms for specified superannuation products, item 17.1]
This section has effect subject to other provisions
1012B(5)
This section does not apply to a regulated person for an issue situation if: (a) one or more of sections 1012D , 1012DAA , 1012E , 1012F , 1012G , 1012GA or 1014E apply to a regulated person for that issue situation; and (b) for each of those sections that so applies - the regulated person complies with the requirements (if any) in that section for that issue situation.
Civil liability
1012B(6)
A person contravenes this subsection if the person contravenes this section.
Note: This subsection is a civil penalty provision (see section 1317E ).
CCH note - modifying legislative instruments: Section 1012B is modified by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (PDS Requirements for General Insurance Quotes) Instrument 2022/66; the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716; the ASIC Corporations (Removing Barriers to Electronic Disclosure) Instrument 2015/649; the ASIC Corporations (Top-up Product Disclosure Statements Relief) Instrument 2016/1054; the ASIC Corporations (Shorter PDS and Delivery of Accessible Financial Products Disclosure by Platform Operators and Superannuation Trustees) Instrument 2022/497; the ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/668; and the ASIC Corporations (Discretions for Setting the Issue Price and Withdrawal Price of Interests in Managed Investment Schemes) Instrument 2023/693.
For modifying legislative instruments or class orders before 1 January 2022, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
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