Corporations Act 2001
CCH Note: Part 7.6 (other than Divs 4 and 8) is modified by ASIC Corporations (Financial Requirements for Corporate Directors of Retail Corporate Collective Investment Vehicles) Instrument 2022/449.
A financial services licensee must take reasonable steps to notify a person (the affected client ) of a reportable situation in accordance with this section if: (a) the licensee, or a representative of the licensee, provides or has provided personal advice to the affected client as a retail client in relation to a relevant financial product; and (b) there are reasonable grounds to believe that the reportable situation has arisen in relation to the licensee as mentioned in:
(i) paragraph 912D(1)(a) (significant breach of a core obligation); or
(c) there are reasonable grounds to suspect that:
(ii) subsection 912D(2) (gross negligence or serious fraud); and
(i) the affected client has suffered or will suffer loss or damage as a result of the reportable situation; and
Form and period for giving notice 912EA(2)
(ii) the affected client has a legally enforceable right to recover the loss or damage from the licensee.
A notice under this section must: (a) be given in writing within 30 days after the financial services licensee first knows of, or is reckless with respect to, the circumstances mentioned in paragraphs (1)(a) , (b) and (c) ; and (b) if ASIC has approved the form in which the notice must be given:
(i) be in the approved form; and
(ii) include the information, statements, explanations or other matters required by the form; and
Qualified privilege 912EA(3)
(iii) be accompanied by any other material required by the form.
A financial services licensee has qualified privilege in relation to a notice given under this section. 912EA(4)
A financial services licensee who has qualified privilege under subsection (3) in respect of conduct is also not liable for any action based on breach of confidence in relation to that conduct. Civil penalty provision 912EA(5)
A person contravenes this subsection if the person contravenes subsection (1) .
Note: This subsection is a civil penalty provision (see section 1317E ).