Corporations Act 2001
[ CCH Note: Ch 7 will be amended by No 8 of 2022, s 3, Sch 2[165], by inserting the note, (effective 1 July 2022). The note will read:
Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .]
This section covers the situation in which a financial product:
(a) is issued to a person; and
(b) covers, or is designed to cover, a group of people; and
(c) may cover a particular person (the new group member ) if the person elects to be covered by the financial product. 1012H(2) [ Disclosure to new member]
The issuer must take reasonable steps to ensure that the new group member is given a Product Disclosure Statement for the financial product in accordance with this Division before the new group member makes an election to be covered by the financial product.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).
1012H(3) [ Recipients of benefits]For the purposes of this section, a person is covered by a financial product if benefits are, or may be, provided under the financial product directly to:
(a) the person; or
(b) a relative of the person; or
(c) a person nominated by the person.
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