CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.9 - FINANCIAL PRODUCT DISCLOSURE AND OTHER PROVISIONS RELATING TO ISSUE, SALE AND PURCHASE OF FINANCIAL PRODUCTS  

Division 2 - Product Disclosure Statements  

Subdivision B - Requirement for a Product Disclosure Statement to be given  

SECTION 1012A   OBLIGATION TO GIVE PRODUCT DISCLOSURE STATEMENT - PERSONAL ADVICE RECOMMENDING PARTICULAR FINANCIAL PRODUCT  

Section sets out recommendation situation in which Product Disclosure Statement required

1012A(1)  
This section sets out the situations in which giving financial product advice that consists of, or includes, a recommendation to acquire a financial product gives rise to an obligation on a regulated person to give another person a Product Disclosure Statement for the product.

1012A(2)  
For the purposes of this Division:


(a) each of the situations is a recommendation situation ; and


(b) the relevant conduct for that situation is the making of the recommendation; and


(c) the client for that situation is the person to whom the advice is provided.

Personal advice recommending a particular financial product

1012A(3)  
A regulated person must give a person a Product Disclosure Statement for a financial product if:


(a) the regulated person provides financial product advice to the person that consists of, or includes, a recommendation that the person acquire the financial product; and


(b) the person would acquire the financial product by way of:


(i) the issue of the product to the person (rather than the transfer of the product to the person); or

(ii) the transfer of the product to the person in circumstances described in subsection 1012C(5) , (6) or (8) (secondary sales that require a Product Disclosure Statement); and


(c) the financial product advice is provided to the client as a retail client; and


(d) the financial product advice is personal advice to the client.

The Product Disclosure Statement must be given at or before the time when the regulated person provides the advice and must be given in accordance with this Division.

This section has effect subject to other provisions

1012A(4)  


This section has effect subject to sections 1012D , 1012DA , 1012E , 1012F , 1012G and 1014E . Civil liability

1012A(5)  


A person contravenes this subsection if the person contravenes this section.

Note: This subsection is a civil penalty provision (see section 1317E ).


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