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 1012H   OBLIGATION TO TAKE REASONABLE STEPS TO ENSURE THAT PRODUCT DISCLOSURE STATEMENT IS GIVEN TO PERSON ELECTING TO BE COVERED BY GROUP FINANCIAL PRODUCT  

1012H(1)   [ Persons covered by product]  

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.