Corporations Act 2001
A person must not offer interests in managed investment schemes for issue or sale in the course of, or because of:
(a) an unsolicited meeting with another person; or
(b) an unsolicited telephone call to another person;
unless the offer is exempted under subsection (2).
Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).
Subsection (1) does not apply to an offer of interests in managed investment schemes if:
(a) the offer is not to a retail client;
(b) the offer is an offer of interests in a listed managed investment scheme made by telephone by a financial services licensee; or
(c) the offer is made to a client by a financial services licensee through whom the client has acquired or disposed of an interest in a managed investment scheme in the previous 12 months; or
(d) the offer is made under an eligible employee share scheme.
[ CCH Note: Act No 101 of 2007, Sch 1, Pt 6 [ 228] contained the following application provision (which was effective 28 June 2007):
Application of items 4, 5, 86, 92, 106, 131 and 132
The amendments made by items 4, 5, 86, 92, 106, 131 and 132 of this Schedule apply to employee share schemes offered on or after the day on which those items commence.]
For the purposes of this section:
(a) a reference to offering interests in a managed investment scheme for issue includes a reference to inviting an application for the issue of interests in the scheme; and
(b) a reference to offering interests in a managed investment scheme for sale includes a reference to inviting an offer to purchase interests in the scheme.
S 992AA will be substituted by No 135 of 2020, s 3, Sch 5 (effective 5 October 2021). S 992AA will read:
SECTION 992AA RIGHT OF RETURN AND REFUND FOR HAWKED FINANCIAL PRODUCTS
If a person (the issuer ) contravenes section 992A in relation to a financial product issued or sold to another person (the consumer ), the consumer has a right of return and refund exercisable at any time during the period starting when the financial product was issued or sold and ending:
(a) if, under section 1019B , the consumer has a right to return the financial product within a particular period - 1 month after the end of that period; or
(b) otherwise - 1 month and 14 days after the financial product was issued or sold.
If the financial product is returned under subsection (1):
(a) if the financial product is constituted by a legal relationship between the consumer and the issuer - by force of this section, that relationship is terminated, with effect from the time of the return, without penalty to the consumer; and
(b) by force of this section, any contract for the acquisition of the product by the consumer is terminated, with effect from the time of the return, without penalty to the consumer; and
(c) such additional consequences (which may include the imposition of additional obligations) apply as are specified in the regulations.
(a) this section does not apply in relation to a financial product included in a class of financial products that the regulations exclude from this section; and
(b) if the regulations provide that this section applies in relation to a class of financial products only if specified additional requirements are satisfied - this section does not apply in relation to a financial product included in that class unless those requirements are satisfied; and
(c) in circumstances specified in the regulations, this section does not apply to any financial product.
This section, and regulations made for the purposes of this section, apply in relation to financial products that are beneficial interests in a regulated superannuation fund as if each class of beneficial interest in the fund were a separate financial product.
This section applies in addition to any other penalties for or in relation to breaches of section 992A .]