Federal Register of Legislation - Australian Government

Primary content

Corporations Regulations 2001

Authoritative Version
  • - F2018C00109
  • In force - Superseded Version
  • View Series
SR 2001 No. 193 Regulations as amended, taking into account amendments up to Treasury Laws Amendment (Professional Standards Schemes) Regulations 2018
Principal Regulations. These Regulations repeal the Corporations Regulations 1990 and the Partnerships and Associations Application Order 1999 (No. 1)
Administered by: Treasury
Registered 15 Feb 2018
Start Date 10 Feb 2018
End Date 03 Apr 2018
Table of contents.

Commonwealth Coat of Arms of Australia

Corporations Regulations 2001

Statutory Rules No. 193, 2001

made under the

Corporations Act 2001

Compilation No. 136

Compilation date:                              10 February 2018

Includes amendments up to:            F2018L00096

Registered:                                         15 February 2018

This compilation is in 7 volumes

Volume 1:       regulations 1.0.01–6D.5.02

Volume 2:       regulations 7.1.02–7.6.08E

Volume 3:       regulations 7.7.01–8.4.02

Volume 4:       regulations 9.1.01–12.9.03

Volume 5:       Schedules 1, 2 and 2A

Volume 6:       Schedules 3–13

Volume 7:       Endnotes

Each volume has its own contents

 

About this compilation

This compilation

This is a compilation of the Corporations Regulations 2001 that shows the text of the law as amended and in force on 10 February 2018 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

  

  

  


Contents

Schedule 3—Specified offices                                                                            1

Schedule 4—Prescribed amounts                                                                  3

Schedule 5C—Conduct of auditor—relevant relationships  5

1............ Money owed—debt............................................................................ 5

2............ Money owed—deposit account........................................................... 5

3............ Public company auditor (annual appointments at AGMs to fill vacancies)               6

Schedule 6—Availability of names                                                              7

Part 1—Rules for ascertaining whether names are identical                      7

Part 2—Names unacceptable for registration                                                      8

Part 3—Restricted words and phrases                                                                   10

Part 4—Consent required to use restricted words and phrases              11

Part 5—Names relating to financial institutions for use of which consent is required    12

Schedule 7—Exemptions from requirements to set out certain corporate particulars                                                                                           13

7001...... Definitions for Schedule 7................................................................ 13

7002...... Exemption for certain IATA documents........................................... 13

7003...... Exemption for bills of lading and sea waybills.................................. 13

7004...... Exemptions—quotation of ACNs and ARBNs................................ 14

Schedule 7A—Content of annual transparency report       15

Part 1—Interpretation for Schedule 7A                                                                15

7A101... Interpretation..................................................................................... 15

Part 2—Prescribed information for audit firm or authorised audit company     16

Part 3—Prescribed information for individual auditor                               17

Schedule 8—Schemes of arrangement under Part 5.1 of the Act    18

Chapter 5—External administration                                                                       18

Part 1—Interpretation and application                                                            18

Part 2—Prescribed information relating to proposed compromise or arrangement with creditors or class of creditors                                                      19

Part 3—Prescribed information relating to proposed compromise or arrangement with members or a class of members                                                  20

Part 4—Prescribed information relating to proposed compromise or arrangement with members or class of members for transfer to a trustee 24

Schedule 8A—Deed of company arrangement—prescribed provisions  25

1............ Administrator deemed agent of company.......................................... 25

2............ Powers of administrator.................................................................... 25

3............ Termination of deed where arrangement fails.................................... 27

4............ Priority.............................................................................................. 27

5............ Discharge of debts............................................................................ 27

6............ Claims extinguished.......................................................................... 27

7............ Bar to creditors’ claims..................................................................... 27

8............ Making claims................................................................................... 28

10.......... Lodging of accounts.......................................................................... 28

11.......... Committee of inspection.................................................................... 28

12.......... Termination of deed where arrangement achieves purpose............... 29

Schedule 8AA—Trustee companies                                                          30

Schedule 8AB—Prescribed State and Territory provisions for paragraph 601RAE (4)(a) of the Act                      31

Schedule 8AC—Prescribed State and Territory laws and provisions for paragraph 601RAE(4)(b) of the Act—estate administration                                                                                                                         32

Schedule 8AD—Prescribed State and Territory laws and provisions for paragraph 601RAE(4)(b) of the Act                       33

Schedule 8AE—Relevant State and Territory provisions 35

Schedule 8B—Option contract—prescribed indexes              36

Schedule 8C—Modifications of Part 7.5 of the Act—compensation regimes                                                                                                                         38

Schedule 9—Companies authorised to effect transfers under Part 7.11 of the Act                                                                                                                42

Schedule 10—Disclosure of fees and other costs                         43

Part 1—Interpretation                                                                                                      43

101........ Definitions........................................................................................ 43

102........ Management costs............................................................................. 45

103........ Transactional and operational costs................................................... 46

104........ Indirect cost ratio............................................................................... 46

Part 2—Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning for Product Disclosure Statements                                   47

Division 1—The fees and costs template for superannuation products 47

201........ Template for superannuation products.............................................. 47

Division 2—The fees and costs template for managed investment products       48

202........ Template for a multiple fee structure—managed investment products 48

202A..... Template for single fee structure—managed investment products..... 49

Division 3—How to fill in the template                                                             51

203........ The preamble..................................................................................... 51

204........ Column 2—presentation of amounts................................................. 51

205........ Column 2—include information for each MySuper product or investment option   51

206........ Presentation of multiple fee payment options.................................... 52

207........ Column 3—how and when fees and costs are payable..................... 52

208........ Other material to be included in the template..................................... 52

Division 4—Additional explanation of fees and costs                                53

209........ Matters to be included as additional explanation of fees and costs.... 53

Division 4A—Defined fees for superannuation products                        55

209A..... Defined fees for superannuation products......................................... 55

Division 5—Example of annual fees and costs                                              57

210........ Example of annual fees and costs...................................................... 57

211........ Superannuation products—Example of annual fees and costs for a MySuper product            57

212........ Managed investment products—Example of annual fees and costs for a balanced investment option.......................................................................................................... 57

213........ Defined benefit funds........................................................................ 58

Division 6—How to fill in the example of annual fees and costs         59

214........ Fees and costs must be ongoing amounts......................................... 59

214A..... Example of annual fees and costs for a MySuper product—lifecycle MySuper product          59

215........ Minimum entry balance rule.............................................................. 59

216........ Exit fees............................................................................................ 59

217........ Contribution fees............................................................................... 59

218........ Administration fees and investment fees for a superannuation product 60

218A..... Management costs for a managed investment product...................... 60

219........ Withdrawal fees and exit fees............................................................ 61

220........ If there is no generic MySuper product or balanced investment option 61

Division 7—Consumer Advisory Warning                                                     62

221........ Consumer advisory warning............................................................. 62

222........ Where to place the Consumer Advisory Warning............................. 62

Part 3—Fees and costs in periodic statements                                                    63

Division 1—Other Management Costs                                                              63

301........ Indirect costs related to investment and administration of accounts... 63

Division 2—Total fees                                                                                                64

302........ Total of fees in the periodic statement............................................... 64

Division 3—Additional Explanation of Fees and Costs                            65

303........ Matters to be included as additional explanation of fees and costs.... 65

Schedule 10A—Modifications of Part 7.9 of the Act              66

Part 1—Modifications relating to sub‑plans                                                        66

Part 2—Modifications relating to Product Disclosure Statements for RSA products     67

Part 3—Modifications relating to insurance options under contract associated with superannuation interest                                                                                68

Part 5A—Modifications for margin loan                                                              69

Part 5B—Modifications for superannuation products to which Subdivision 4.2B of Division 4 of Part 7.9 applies                                                                     71

Part 5C—Modifications for simple managed investment scheme          73

Part 6—Modifications relating to application forms and Product Disclosure Statements for standard employer‑sponsor arrangements and successor funds               75

Part 6A—Modifications relating to MySuper measures                              76

Part 7—Modifications relating to life pensioners, members subject to compulsory protection of small amounts and members with small amounts that are expected to grow quickly                                                                                                                     77

Part 8—Modifications relating to periodic statements for RSA providers             79

Part 9—Modifications relating to periodic statements for superannuation entities and RSA providers                                                                                                                81

Part 10—Modifications relating to ongoing disclosure of material changes and significant events in relation to superannuation products and RSAs       82

Part 11—Modifications relating to charges for information requested 84

Part 12—Modifications relating to information when member leaves a fund      85

Part 13—Modifications relating to exceptions to exit reporting period provisions            86

Part 14—Modifications relating to obligation to give information about financial products                                                                                                                                      87

Part 15—Modifications for confirmation of transactions                           89

Part 16—Modifications relating to reporting periods                                    90

Part 17—Modifications relating to application forms for specified superannuation products                                                                                                                                      91

Part 18—Modification of Part 7.9 of the Act—New Zealand offer documents replace Product Disclosure Statements where an offer relates to interests in a New Zealand managed investment scheme                                                                      92

Part 19—Modifications for carbon units, Australian carbon credit units and eligible international emissions units                                                                      93

Schedule 10AA—Modifications of the Act in relation to their application in respect of a recognised offer or a proposed offer of securities that may become a recognised offer                                   104

Part 1—Modification of Part 6D.2 of the Act—disclosure to investors not required for recognised offer under Chapter 8                                                        104

Part 2—Modification of Part 7.9 of the Act—disclosure to investors not required for recognised offer under Chapter 8                                                        105

Schedule 10BA—Modifications of the Act relating to Short‑Form Product Disclosure Statements                                                            107

Part 1—Modifications of Part 7.7 of the Act                                                    107

Part 2—Modifications of Part 7.8 of the Act                                                    108

Part 3—Modifications of Part 7.9 of the Act                                                    109

Schedule 10C—Form and content of Product Disclosure Statement—margin loan                                                                                                           118

1............ Length and font size for Product Disclosure Statement for margin loan.. 118

2............ Minimum content of Product Disclosure Statement for margin loan 118

3............ Contents of section 1 (About [name of provider of the margin loan] and [name of margin loan product])........................................................................................................ 119

4............ Contents of section 2 (Benefits of [name of margin loan product]). 120

5............ Contents of section 3 (How [name of margin loan product] works) 120

6............ Contents of section 4 (What is a margin call?)................................ 121

7............ Contents of section 5 (The risk of losing money)........................... 122

8............ Contents of section 6 (The costs).................................................... 122

9............ Contents of section 7 (How to apply)............................................. 123

Schedule 10D—Form and content of Product Disclosure Statement—superannuation product to which Subdivision 4.2B of Division 4 of Part 7.9 applies                                                                     124

1............ Length and font size for Product Disclosure Statement for superannuation product                124

2............ Minimum content of Product Disclosure Statement for superannuation product      124

3............ Contents of section 1 (About [name of superannuation product]). 125

4............ Contents of section 2 (How super works)...................................... 126

5............ Contents of section 3 (Benefits of investing with [name of superannuation product])             126

6............ Contents of section 4 (Risks of super)............................................ 127

7............ Contents of section 5 (How we invest your money)....................... 127

8............ Contents of section 6 (Fees and costs)............................................ 129

9............ Contents of section 7 (How super is taxed).................................... 131

10.......... Contents of section 8 (Insurance in your super).............................. 131

11.......... Contents of section 9 (How to open an account)............................. 133

Schedule 10E—Form and content of Product Disclosure Statement—simple managed investment scheme                                          134

1............ Length and font size for Product Disclosure Statement for simple managed investment scheme........................................................................................................ 134

2............ Minimum content of Product Disclosure Statement for simple managed investment scheme   134

3............ Contents of section 1 (About [name of responsible entity])............ 135

4............ Contents of section 2 (How [name of simple managed investment scheme] works)                136

5............ Contents of section 3 (Benefits of investing in [name of simple managed investment scheme])........................................................................................................ 136

6............ Contents of section 4 (Risks of managed investment schemes)...... 136

7............ Contents of section 5 (How we invest your money)....................... 137

8............ Contents of section 6 (Fees and costs)............................................ 139

9............ Contents of section 7 (How managed investment schemes are taxed) 141

10.......... Contents of section 8 (How to apply)............................................. 141

Schedule 11—Persons who are not covered by section 1433 of the Act    142

Schedule 12—ASIC transitional standards                                    144

Schedule 13—Transition to Part 3 of the Insolvency Practice Schedule (Corporations)                                                                              145


Schedule 3Specified offices

(regulation 6.2.02)

  

 

Column 1

Column 2

Column 3

Column 4

Item

Office

Law

Jurisdiction

1

Treasurer

 

Commonwealth

2

Trustee

Parts IV, X and XI of the Bankruptcy Act 1966

Commonwealth

3

Chairperson of the Australian Securities and Investments Commission

Australian Securities and Investments Commission Act 2001

Commonwealth

4

Deputy Chairperson of the Australian Securities and Investments Commission

Australian Securities and Investments Commission Act 2001

Commonwealth

5

Member of the Australian Securities and Investments Commission

Australian Securities and Investments Commission Act 2001

Commonwealth

7

Member of the Takeovers Panel

Australian Securities and Investments Commission Act 2001

Commonwealth

8

Treasurer

 

Western Australia

9

Commissioner for Corporate Affairs

 

Western Australia

10

Public Trustee

Public Trustee Act 1941

Western Australia

11

Master of the Supreme Court

Supreme Court Act 1935

Western Australia

12

Registrar of the Supreme Court

Supreme Court Act 1935

Western Australia

13

Treasurer

 

Victoria

14

Commissioner for Corporate Affairs

 

Victoria

15

Public Trustee

Public Trustee Act 1958

Victoria

16

Master of the Supreme Court

Supreme Court Act 1958

Victoria

17

Treasurer

 

New South Wales

18

Public Trustee

Public Trustee Act 1913

New South Wales

19

Master

Division 1 of Part VIII of the Supreme Court Act 1970

New South Wales

20

Supervisor of Loan Fund Companies

Loan Fund Companies Act 1976

New South Wales

21

Protective Commissioner

Mental Health Act 1958

New South Wales

22

Treasurer

 

Queensland

23

Commissioner for Corporate Affairs

 

Queensland

24

Public Trustee

Public Trustee Act 1978

Queensland

25

Registrar

Supreme Court Acts 1861‑1980

Queensland

26

Treasurer

 

South Australia

27

Curator of Prisoners Property

Criminal Law Consolidation Act 1935‑80

South Australia

28

Public Trustee

Administration and Probate Act 1919‑1980

South Australia

29

Master or accountant

Supreme Court Act 1935‑1980

South Australia

30

Administrator

Chapter XLIX of the Criminal Code

Tasmania

31

Treasurer

 

Tasmania

32

Commissioner for Corporate Affairs

 

Tasmania

33

Public Trustee

Public Trustee Office Act 1930

Tasmania

34

Registrar of the Supreme Court

Supreme Court Act 1959

Tasmania

35

Treasurer

 

Australian Capital Territory

36

Public Trustee

Administration and Probate Ordinance 1929 and the Public Trustee Act 1985

Australian Capital Territory

37

Registrar of the Supreme Court

Australian Capital Territory Supreme Court Act 1933

Commonwealth

38

Master of the Supreme Court

Australian Capital Territory Supreme Court Act 1933

Commonwealth

39

Treasurer

 

Northern Territory

40

Public Trustee

Public Trustee Act 1979

Northern Territory

41

Master of the Supreme Court

 

Northern Territory

42

Commissioner for Corporate Affairs

Companies (Administration) Act 1986

Northern Territory

Schedule 4Prescribed amounts

(regulation 1.1.01)

  

 

Column 1

Column 2

Column 3

Item

Matter

Amount ($)

1

Inspection of registers for the purposes of:

 

 

(a) subsection 173(2) or subsection 672DA (7):

 

 

(i) if a register is not kept on a computer—for each inspection

5.00

 

(ii) if a register is kept on a computer—for each inspection

a reasonable amount that does not exceed the marginal cost to the company of providing an inspection

1AA

Supply of copies for subsection 173(3)

In addition:

250.00

 

(a) for each member about whom information is provided in excess of 5 000 members and up to 19 999 members

0.05

 

(b) for each member about whom information is provided at 20 000 members or more

0.01

1A

Inspection of registers or records for:

 

 

(a) subsection 271(3)

 

 

(b) subsection 668A(3);

 

 

for each inspection

5.00

2

Supply under section 139 by a company to a member of the company of a copy of the company’s constitution

10.00

3

Supply of copies for subsection 672DA (8):

 

 

(a) if a register is not kept on a computer—for each page, or part of a page, not exceeding international sheet size A4 of the copy supplied or, at the option of the supplier, for each 100 words or part of 100 words

0.50

 

(b) if a register is kept on a computer—for each inspection

a reasonable amount that does not exceed the marginal cost to the company of providing a copy

3A

Supply of copies for:

 

 

(a) subsection 246G (3)

 

 

(b) subsection 251B (4)

 

 

(ba) subsection 253N (4)

 

 

(c) subsection 271(4)

 

 

(d) subsection 812(3)

 

 

(e) paragraph 1178(3)(a);

 

 

for each page, or part of a page, not exceeding international sheet size A4 of the copy supplied or, at the option of the supplier, for each 100 words or part of 100 words

0.50

4

Payment for each name and address provided under subsection 641(5)

0.10

5

For compliance with a direction under section 672A

5.00

6

Replacement of lost or destroyed certificate for paragraph 1070D(4)(a)

10.00

7

Fee for supply by a responsible entity of a copy of the constitution of a registered scheme under subsection 601GC(4)

10.00

8

Inspection of register for subsection 919E(3):

 

 

(a) if the register is not kept on a computer—for each inspection

12.50

 

(b) if the register is kept on a computer—for each inspection

a reasonable amount that does not exceed the marginal cost to the declared professional body of providing an inspection

 

(c) despite paragraphs (a) and (b), if the inspection is by a member of the declared professional body

No fee

9

Making copies of, or taking extracts from, a register for subsection 919E(3):

 

 

(a) if the register is not kept on a computer—for each page, or part of a page, not exceeding international sheet size A4 of the copy supplied or, at the option of the supplier, for each 100 words or part of 100 words

1.25

 

(b) if a register is kept on a computer—for each copy or extract

a reasonable amount that does not exceed the marginal cost to the declared professional body of providing a copy or extract


Schedule 5CConduct of auditor—relevant relationships

(regulation 2M.6.05)

  

1  Money owed—debt

             (1)  Subclause (2) applies in relation to audit activity in relation to a financial year that ends on or after the commencement of this Schedule.

             (2)  The operation of Chapter 2M of the Act is modified by omitting subsection 324CH(5) of the Act (including the subheading) and substituting the following subheading and subsection:

Ordinary course of business exception

             (5)  For the purposes of item 15 of the table in subsection (1):

                     (a)  disregard a debt owed by an individual to a body corporate or entity if:

                              (i)  the body corporate or entity is:

                                        (A)  an Australian ADI; or

                                        (B)  a body corporate registered under the Life Insurance Act 1995; and

                             (ii)  the debt arose because of a loan that the body corporate or entity made to the person in the ordinary course of its ordinary business; and

                            (iii)  the person used the amount of the loan to pay the whole or part of the purchase price of premises that the person uses as their principal place of residence; and

                     (b)  disregard a debt owed by the person or firm to a body corporate or entity if:

                              (i)  the debt is on normal terms and conditions, and arises from the acquisition of goods or services on normal trading terms from:

                                        (A)  the audited body; or

                                        (B)  an entity that the audited body controls; or

                                        (C)  a related body corporate; and

                             (ii)  the goods or services will be used by the person or firm:

                                        (A)  for the personal use of the person or firm; or

                                        (B)  in the ordinary course of business of the person or firm.

2  Money owed—deposit account

             (1)  Subclause (2) applies in relation to audit activity in relation to a financial year that ends on or after the commencement of this Schedule.

             (2)  The operation of Chapter 2M of the Act is modified by omitting subsection 324CH(6) of the Act (including the subheading) and substituting the following subheading and subsection:

Loans by immediate family members and amounts on call

             (6)  For the purposes of item 16 of the table in subsection (1):

                     (a)  disregard a debt owed to a person by a body corporate or entity if:

                              (i)  the item applies to the person because the person is an immediate family member of:

                                        (A)  a professional member of the audit team conducting the audit of the audited body; or

                                        (B)  a non‑audit services provider; and

                             (ii)  the debt is incurred in the ordinary course of business of the body corporate or entity; and

                     (b)  disregard an amount owed to the person or firm by the audited body, a related body corporate or an entity that the audited body controls if:

                              (i)  the body, body corporate or entity is an Australian ADI; and

                             (ii)  the amount is in a basic deposit product (within the meaning of section 761A of the Act) provided by the body, body corporate or entity; and

                            (iii)  the amount was deposited in the ordinary course of the business of the audited body, body corporate or entity, and on the terms and conditions that normally apply to basic deposit products provided by the body, body corporate or entity.

3  Public company auditor (annual appointments at AGMs to fill vacancies)

             (1)  Subclause (2) applies to:

                     (a)  all companies; and

                     (b)  all registered schemes; and

                     (c)  all disclosing entities;

only in relation to audit activity that is conducted on or after the commencement of this Schedule.

             (2)  The operation of Chapter 2M of the Act is modified by omitting from subsections 327B(2A), (2B) and (2C) of the Act “21 days” and inserting “21 days, or such longer period as ASIC allows,”.


Schedule 6Availability of names

(regulations 2B.6.01, 2B.6.02, 5B.3.01 and 5B.3.02)

Part 1Rules for ascertaining whether names are identical

6101

                   In comparing one name with another for paragraph 147(1)(a) or (b) or 601DC(1)(a) or (b) of the Act, the following matters are to be disregarded:

                     (a)  the use of the definite or indefinite article as the first word in one or both of those names;

                     (b)  the use of ‘Proprietary’, ‘Pty’, ‘Limited’, ‘Ltd’, ‘No Liability’ or ‘NL’ in one or both of the names;

                     (c)  whether a word is in the plural or singular number in one or both names;

                     (d)  the type, size and case of letters, the size of any numbers or other characters, and any accents, spaces between letters, numbers or characters, and punctuation marks, used in one or both names;

                     (e)  the fact that one name contains a word or expression in column 2 of the following table and the other name contains an alternative for that word or expression in column 3:

 

Column 1

Item

Column 2

Word or expression

Column 3

Alternative

1

Australian

Aust

2

Company

Co or Coy

3

Co

Company or Coy

4

Coy

Company or Co

5

Number

No

6

and

&

7

Incorporated

Inc

8

Corporation

Corp

9

Australian Company Number

ACN

Part 2Names unacceptable for registration

6203

                   For paragraph 147(1)(c) or 601DC(1)(c) of the Act, a name is unacceptable for registration if the name:

                     (a)  in the opinion of ASIC, is undesirable, or likely to be offensive to:

                              (i)  members of the public; or

                             (ii)  members of any section of the public; or

                     (b)  subject to rule 6204:

                              (i)  contains a word or phrase specified in an item in Part 3, or an abbreviation of that word or phrase; or

                             (ii)  a word or phrase or an abbreviation having the same or a similar meaning; or

                     (c)  subject to rule 6205, includes the word ‘Commonwealth’ or ‘Federal’; or

                     (d)  in the context in which it is proposed to be used, suggests a connection with:

                              (i)  the Crown; or

                             (ii)  the Commonwealth Government; or

                            (iii)  the Government of a State or Territory; or

                            (iv)  a municipal or other local authority; or

                             (v)  the Government of any other part of the Queen’s dominions, possessions or territories; or

                            (vi)  a department, authority or instrumentality of the Commonwealth Government; or

                           (vii)  a department, authority or instrumentality of the Government of a State or Territory; or

                          (viii)  the government of a foreign country;

                            if that connection does not exist; or

                     (e)  in the context in which it is proposed to be used, suggests a connection with:

                              (i)  a member of the Royal Family; or

                             (ii)  the receipt of Royal patronage; or

                            (iii)  an ex‑servicemen’s organisation; or

                            (iv)  Sir Donald Bradman; or

                             (v)  Mary MacKillop;

                            if that connection does not exist; or

                      (f)  in the context in which it is proposed to be used, suggests that the members of an organisation are totally or partially incapacitated if those members are not so affected.

6204

                   Paragraph 6203(b) does not apply to:

                     (a)  item 6309, 6312 or 6318 of Part 3 if a word in any of those items must be included in the name of:

                              (i)  a registrable Australian body; or

                             (ii)  a registered Australian body;

                            because of the Act under which it is incorporated or registered; and

                     (b)  item 6314 of Part 3 if the word must be included in the name of:

                              (i)  a registrable Australian body; or

                             (ii)  a registered Australian body; or

                            (iii)  a registered foreign company; or

                            (iv)  a foreign company;

                            because of the Act under which it is incorporated or registered.

6205

                   Paragraph 6203(c) does not apply if ASIC is satisfied that the word is used in a geographical context.

Part 3Restricted words and phrases

 

Column 1

Column 2

Item

Word or phrase

6301

Aboriginal Corporation

6302

Aboriginal Council

6304

Chamber of Commerce

6305

Chamber of Manufactures

6306

Chartered

6308

Consumer

6309

Co‑operative

6311

Executor

6312

Friendly Society (other than in relation to the conduct of a financial business)

6312A

GST

6312B

G.S.T.

6313

Guarantee

6314

Incorporated

6316

Made in Australia

6316A

police

6316B

policing

6317

R.S.L.

6317A

RSL

6318

Starr Bowkett

6319

Stock Exchange

6320

Torres Strait Islander Corporation

6321

Trust

6322

Trustee

Part 4Consent required to use restricted words and phrases

 

Column 1

Column 2

Column 3

Item

Word or phrase

Minister

6401

Anzac

Minister for Veterans’ Affairs

6403

Geneva Cross, Red Crescent, Red Cross, Red Lion and Sun

Minister for Defence

6405

United Nations

Minister for Foreign Affairs

6406

University

Minister for Education, Training and Youth Affairs

Part 5Names relating to financial institutions for use of which consent is required

 


Item


Letters, word or expression

Public authority, instrumentality or agency

6501

ADI

APRA

6502

authorised deposit‑taking institution

APRA

6503

bank

APRA

6504

banker

APRA

6505

banking

APRA

6506

building society

APRA

6507

credit society

APRA

6508

credit union

APRA

6509

friendly society (in relation to the conduct of a financial business)

APRA

Schedule 7Exemptions from requirements to set out certain corporate particulars

(regulations 2B.6.03 and 5B.3.03)

  

7001  Definitions for Schedule 7

                   In this Schedule:

IATA means the International Air Transport Association.

IATA body means a company, registered Australian body or registered foreign company that is a member of IATA, or participates in the program conducted by IATA known as BSP Australia.

relevant information means the information that is required under subsection 153(2), or paragraph 601DE(1)(b), (c) or (d), of the Act to be set out on a public document or negotiable instrument.

7002  Exemption for certain IATA documents

                   An IATA Body is exempt from the requirement to set out the relevant information on a document if:

                     (a)  it is a document of one of the following kinds:

                              (i)  passenger ticket and baggage check;

                             (ii)  excess baggage ticket;

                            (iii)  agency credit or debit memo;

                            (iv)  credit card charge form;

                             (v)  miscellaneous charges order;

                            (vi)  stopover voucher;

                           (vii)  air waybill; and

                     (b)  either:

                              (i)  it is in a form sponsored by IATA; or

                             (ii)  it is required by IATA to be used by IATA bodies; or

                            (iii)  it is a document printed outside Australia exclusively for use, outside Australia, by or on behalf of that particular IATA body.

7003  Exemption for bills of lading and sea waybills

                   The following companies, registered Australian bodies and registered foreign companies are exempt from the requirement to set out the relevant information on a bill of lading or sea waybill:

                     (a)  Austrident Shipping Agency Pty Ltd;

                     (b)  ANL Limited;

                     (c)  Bakke‑WA Pty Limited;

                     (d)  Blue Star Line Limited;

                     (e)  Blue Star PACE Limited;

                      (f)  CSR Limited;

                     (g)  Dalgety Australia Operations Limited;

                     (h)  Five Star Shipping & Agency Company Pty Ltd;

                      (i)  Jebsens International (Australia) Pty Ltd;

                      (j)  ‘K’ Line (Australia) Pty Limited;

                     (k)  Nedlloyd Australia Pty Ltd;

                      (l)  OOCL (Australia) Pty Limited;

                    (m)  Opal Maritime Agencies Pty Limited;

                     (n)  Patrick Sleigh Shipping Agencies Pty Limited;

                     (o)  Tasman Express Line Limited;

                     (p)  Wilhelmsen Lines Australia Pty Ltd;

                     (q)  Wills Shipping Pty Limited.

7004  Exemptions—quotation of ACNs and ARBNs

             (1)  A company is exempt from the requirement to set out the relevant information on a public document, or a negotiable instrument, of the company if:

                     (a)  the company is registered on the Australian Business Register; and

                     (b)  the last 9 digits of its ABN are the same, and in the same order, as the last 9 digits of its ACN; and

                     (c)  ‘Australian Business Number’ or ‘ABN’ is displayed with the name of the company, or with 1 of the references to that name:

                              (i)  in the case of a document or instrument in which the name appears on only 1 page—on that page; and

                             (ii)  in the case of a document or instrument in which the name appears on 2 or more pages—on the first of those pages.

             (2)  A registered Australian body or registered foreign body is exempt from the requirement to set out information mentioned in paragraph 601DE(1)(b) and subsection 601DE(2) of the Act on a public document, or a negotiable instrument, of the registered body or foreign company if:

                     (a)  the body or company is also registered on the Australian Business Register; and

                     (b)  the last 9 digits of its ABN are the same, and in the same order, as the last 9 digits of its ARBN; and

                     (c)  ‘Australian Business Number’ or ‘ABN’ is displayed with the name of the body or company, or with 1 of the references to that name:

                              (i)  in the case of a document or instrument in which the name appears on only 1 page—on that page; and

                             (ii)  in the case of a document or instrument in which the name appears on 2 or more pages—on the first of those pages.

Schedule 7AContent of annual transparency report

(subregulation 2M.4A.02(1))

Part 1Interpretation for Schedule 7A

7A101  Interpretation

                   In this Schedule:

management body, for an authorised audit company, means the Board of Directors.

relevant transparency reporting year means the transparency reporting year to which an annual transparency report relates.

Note 1:       Many terms and expressions used in this Schedule have the meaning given by the Act. For example:

·      annual transparency report

·      audit

·      audit activity

·      audit firm

·      authorised audit company

·      director

·      engage in audit activity

·      financial year

·      individual auditor

·      non‑audit services provider

·      professional accounting body

·      professional member of an audit team

·      remuneration

·      transparency reporting auditor

·      transparency reporting year.

Note 2:       See regulation 2M.4A.01 for an application provision that, read in combination with regulation 2M.4A.02, is relevant to Schedule 7A.

Part 2Prescribed information for audit firm or authorised audit company

 

Item

Information

7A201

A description of the transparency reporting auditor’s:

(a) legal structure; and

(b) ownership

7A202

If the transparency reporting auditor belongs to a network, a description of:

 

(a) the network; and

(b) the legal arrangements of the network; and

(c) the structural arrangements of the network

7A203

A description of the transparency reporting auditor’s governance structure

7A204

A description of the transparency reporting auditor’s internal quality control system

7A205

A statement by the transparency reporting auditor’s administrative body or management body on the effectiveness of the functioning of the transparency reporting auditor’s internal quality control system in the relevant transparency reporting year

7A206

The name of each body that is authorised to review the transparency reporting auditor (for example, ASIC or a professional accounting body) and the date of the most recent review of the transparency reporting auditor conducted by the body

7A207

The names of bodies of the kinds mentioned in subsection 332A(1) of the Act for which the transparency reporting auditor conducted an audit under Division 3 of Part 2M.3 of the Act in the relevant transparency reporting year

7A208

A statement about the transparency reporting auditor’s independence practices in the relevant transparency reporting year, including the date on which the transparency reporting auditor most recently conducted an internal review of its independence compliance

7A209

A statement about the policy that the transparency reporting auditor follows regarding the minimum amount and nature of continuing or other professional education that professional members of an audit team must undertake during the relevant transparency reporting year

7A210

Financial information for the transparency reporting auditor that relates to the relevant transparency reporting year, including:

(a) total revenue; and

 

(b) revenue relating to:

(i) audits of financial statements conducted by the transparency reporting auditor; and

(ii) other services provided by the transparency reporting auditor

7A211

Information concerning the basis for remuneration of:

(a) the audit firm’s partners; or

(b) the authorised audit company’s directors

Part 3Prescribed information for individual auditor

 

Item

Information

7A301

If the transparency reporting auditor belongs to a network, a description of:

 

(a) the network; and

(b) the legal arrangements of the network; and

(c) the structural arrangements of the network

7A302

A description of the transparency reporting auditor’s internal quality control system

7A303

The name of each body that is authorised to review the transparency reporting auditor (for example, ASIC or a professional accounting body) and the date of the most recent review of the transparency reporting auditor conducted by the body

7A304

The names of bodies of the kinds mentioned in subsection 332A(1) of the Act for which the transparency reporting auditor conducted an audit under Division 3 of Part 2M.3 of the Act in the relevant transparency reporting year

7A305

A statement that sets out the transparency reporting auditor’s independence practices in the relevant transparency reporting year

7A306

Financial information for the transparency reporting auditor that relates to the relevant transparency reporting year, including:

(a) total revenue; and

(b) revenue relating to:

(i) audits of financial statements conducted by the transparency reporting auditor; and

(ii) other services provided by the transparency reporting auditor

Schedule 8Schemes of arrangement under Part 5.1 of the Act

(regulation 5.1.01)

Chapter 5External administration

Part 1Interpretation and application

8101           In this Schedule:

internal creditor means:

                     (a)  a creditor who is a member of the company; or

                     (b)  a relative or spouse of a member; or

                     (c)  a relative of the spouse of a member.

Scheme means the proposed compromise or arrangement.

scheme creditors means the creditors or class of creditors of a company, to whom the Scheme would apply.

scheme members means the members or class of members of a company, to whom the Scheme would apply.

8102           This Schedule applies to a Part 5.1 body that is not a company as if:

                     (a)  references to a company were references to a Part 5.1 body that is not a company; and

                     (b)  references to a director were references to an office bearer, committee member or other office holder of the body; and

                     (c)  references to entitlements to voting shares were references to an ability to exercise a percentage of the total votes that could be exercised by members of the body.

Part 2Prescribed information relating to proposed compromise or arrangement with creditors or class of creditors

8201           The statement must set out:

                     (a)  the expected dividend that would be available to scheme creditors if the company were to be wound up within 6 months after the date of the hearing of the application to the Court for an order under subsections 411(1) and (1A) of the Act; and

                     (b)  if a composition of debts is proposed—the expected dividend that would be paid to scheme creditors if the Scheme were put into effect as proposed; and

                     (c)  a list of the names of all known scheme creditors and the debts owed to those creditors; and

                     (d)  if a scheme creditor is known to be a guaranteed creditor—the name of the creditor and the amount of the debt owed; and

                     (e)  if a scheme creditor is known to be an internal creditor—the name of the creditor and the amount of the debt owed.

8202           The statement must contain a statement that an order under subsections 411(1) and (1A) of the Act is not an endorsement of, or any other expression of opinion on, the Scheme.

8203           The statement must contain or have annexed to it:

                     (a)  a report on the affairs of the company in accordance with Form 507, showing the financial position of the company as at a day within one month of the date on which it is intended to apply to the Court for an order under subsections 411(1) and (1A) of the Act;

                     (b)  a copy, certified by a director or by a secretary of the company to be a true copy, of all financial statements, required to be lodged with the ASIC by the company, together with a copy of every document required by law to be annexed to the financial statements;

                     (c)  if the company the subject of the Scheme is a trustee, a statement:

                              (i)  of the number of trusts administered by the trustee; and

                             (ii)  whether the trustee carries on any business separate from that of the trust; and

                            (iii)  how the scheme creditors may obtain a copy of the relevant trust deed, free of charge, prior to the date of the meeting; and

                     (d)  if the person (if any) who would be appointed to manage the Scheme proposes to charge for his or her services and for the services of his or her staff in accordance with a particular scale of charges, that scale of charges.

Part 3Prescribed information relating to proposed compromise or arrangement with members or a class of members

8301           The statement must set out:

                     (a)  unless the company the subject of the Scheme is in the course of being wound up or is under official management, in relation to each director of the company:

                              (i)  whether the director recommends the acceptance of the Scheme or recommends against acceptance and, in either case, his or her reasons for so recommending; or

                             (ii)  if the director is not available to consider the Scheme—that the director is not so available and the cause of his or her not being available; or

                            (iii)  in any other case—that the director does not desire to make, or does not consider himself or herself justified in making, a recommendation and, if the director so requires, his or her reasons for not wishing to do so; or

                     (b)  if the company is in the course of being wound up or is under official management—in relation to each liquidator or each official manager:

                              (i)  whether he or she recommends acceptance of the Scheme or recommends against acceptance and, in either case, his or her reasons for so recommending; or

                             (ii)  in any other case—that the liquidator or official manager does not wish to make a recommendation and his or her reasons for not wishing to do so.

8302           The statement must set out:

                     (a)  the number, description and amount of marketable securities of the company the subject of the Scheme held by or on behalf of each director of the company or, if none are held by or on behalf of a director, a statement to that effect; and

                     (b)  for each director of the company by whom or on whose behalf shares in that company are held, whether:

                              (i)  the director intends to vote in favour of, or against, the Scheme; or

                             (ii)  the director has not decided whether he or she will vote in favour of, or against, the Scheme; and

                     (c)  if the other party to the proposed reconstruction or amalgamation is, or includes, a corporation, whether any marketable securities of the corporation are held by, or on behalf of, any director of the company the subject of the Scheme and, if so, the number, description and amount of those marketable securities; and

                     (d)  particulars of any payment or other benefit that is proposed to:

                              (i)  be made or given to any director, secretary or executive officer of the company the subject of the Scheme as compensation for loss of, or as consideration for or in connection with his or her retirement from, office in that company or in a related body corporate; or

                             (ii)  be made or given to any director, secretary or executive officer of any related body corporate as compensation for the loss of, or as consideration for or in connection with his or her retirement from, office in that body corporate or in the company the subject of the Scheme; and

                     (e)  if there is any other agreement or arrangement made between a director of the company the subject of the Scheme and another person in connection with or conditional on the outcome of the Scheme—particulars of the agreement or arrangement; and

                      (f)  if the object of the Scheme is for a corporation to acquire control of another corporation that is a company, particulars of the nature and extent of any interest of a director of that company in any contract entered into by the corporation seeking control; and

                     (g)  if the shares of the company the subject of the Scheme are not granted official quotation on a securities exchange, all the information that the company has as to the number of shares that have been sold in the 6 months immediately before the date on which the statement is lodged, the amount of those shares and the prices at which they were sold; and

                     (h)  whether, within the knowledge of the directors of the company the subject of the Scheme, or, if the company is in liquidation or under official management, the knowledge of the liquidator or the official manager, the financial position of the company has materially changed since the date of the last balance sheet laid before the company in general meeting or sent to shareholders in accordance with section 314 or 317 of the Act and, if so, full particulars of any change; and

                      (i)  any other information material to the making of a decision in relation to the Scheme, being information that is within the knowledge of any director, liquidator or official manager of a company the subject of the Scheme or of a related company and that has not previously been disclosed to the Scheme members.

8303           If:

                     (a)  the other party to the proposed reconstruction or amalgamation of the company the subject of the Scheme has a prescribed shareholding in the company; or

                     (b)  a director of any corporation that is the other party to the proposed reconstruction or amalgamation is a director of a company the subject of the Scheme;

the statement must be accompanied by a copy of a report made by an expert who is not associated with the corporation that is the other party, stating whether or not, in his or her opinion, the proposed Scheme is in the best interest of the members of the company the subject of the Scheme and setting out his or her reasons for that opinion.

8304           If the company the subject of the Scheme obtains 2 or more reports, each of which could be used for clause 3, the statement must be accompanied by a copy of each report.

8305           If:

                     (a)  the company the subject of the Scheme obtains a report for clause 3; and

                     (b)  the report contains:

                              (i)  a forecast of the profits or profitability of the company; or

                             (ii)  a statement that the market value of an asset or assets of the company or of a related body corporate differs from an amount at which the value of the asset or assets is shown in the books of the company or the related body corporate;

that report must not accompany the statement except with the consent in writing of ASIC and in accordance with such conditions (if any) as are stated by ASIC.

8306           For clause 3:

                     (a)  a person has a prescribed shareholding in a company if he or she is entitled to not less than 30% of the voting shares in the company; and

                     (b)  a person has a prescribed shareholding in a company in which the voting shares are divided into 2 or more classes of shares, if he or she is entitled to not less than 30% of the shares in one of those classes.

8307           If the consideration to be offered to scheme members consists, in whole or in part, of marketable securities issued, or to be issued, by a corporation, the statement must set out the formula to be applied to find out the number of marketable securities to be issued to each scheme member, and the basis on which that formula was developed.

8308           If marketable securities of the same class as those mentioned in clause 7 are granted official quotation on a securities exchange, the statement must state the fact, specify the securities exchange concerned, and set out:

                     (a)  the latest recorded sale price before the date on which the statement is lodged for registration; and

                     (b)  the highest and lowest recorded sale prices during the 3 months immediately before that date and the dates of the relevant sales; and

                     (c)  if the Scheme has been the subject of a public announcement in newspapers or by any other means before the statement has been registered by ASIC—the latest recorded sale price immediately before the public announcement.

8309     (1)  If the marketable securities mentioned in clause 8 are granted official quotation on more than one securities exchange, it is sufficient compliance with paragraphs 8(a) and (c) if information on the marketable securities is given for the securities exchange at which there has been the greatest number of recorded dealings in the securities in the 3 months immediately before the date on which the statement is lodged for registration.

             (2)  If the securities have not been granted official quotation on a securities exchange, the statement must set out all the information that a director, liquidator or official manager of the company the subject of the Scheme or of a related body corporate has about the number of securities that have been sold in the 3 months immediately before the date on which the explanatory statement was prepared and the price of those securities or, if that information or any part of that information cannot be ascertained, a statement to that effect.

8310           The statement must set out particulars of the intentions of the directors of the company the subject of the Scheme regarding:

                     (a)  the continuation of the business of the company or, if the undertaking, or any part of the undertaking, of a company is to be transferred, how that undertaking or part is to be conducted in the future; and

                     (b)  any major changes to be made to the business of the company, including any redeployment of the fixed assets of the company; and

                     (c)  the future employment of the present employees of the company.

Part 4Prescribed information relating to proposed compromise or arrangement with members or class of members for transfer to a trustee

8401           The statement must set out:

                     (a)  in detail, the basis on which units in the unit trust are to be issued to scheme members; and

                     (b)  if the issue of units in the unit trust is based on the asset backing of shares held by scheme members—full valuation details of those assets.

8402           A copy of the trust deed must be annexed, or set out in a schedule, to the statement.

8403           If the effect of the proposed compromise or arrangement will be the merger of 2 companies without substantial common membership, the explanatory statement must, so far as practicable, state the matters, and be accompanied by the documents and reports, mentioned in Part 3.


Schedule 8ADeed of company arrangement—prescribed provisions

(regulation 5.3A.06)

  

  

1  Administrator deemed agent of company

                   In exercising the powers conferred by this deed and carrying out the duties arising under this deed, the administrator is taken to act as agent for and on behalf of the company.

2  Powers of administrator

                   For the purpose only of administering this deed, the administrator has the following powers:

                     (a)  to enter upon or take possession of the property of the company;

                     (b)  to lease or let on hire property of the company;

                     (c)  to grant options over property of the company on such conditions as the administrator thinks fit;

                     (d)  to insure property of the company;

                     (e)  to repair, renew or enlarge property of the company;

                      (f)  to call in, collect or convert into money the property of the company;

                     (g)  to administer the assets available for the payment of claims of creditors in accordance with the provisions of this deed;

                     (h)  to purchase, hire, lease or otherwise acquire any property or interest in property from any person or corporation;

                      (i)  to borrow or raise money, whether secured upon any or all of the assets of the company or unsecured, for any period on such terms as the administrator thinks fit and whether in substitution for any existing security or otherwise;

                      (j)  to bring, prosecute and defend in the name and on behalf of the company or in the name of the administrator any actions, suits or proceedings;

                     (k)  to refer to arbitration any question affecting the company;

                      (l)  to make payments to any secured creditor of the company and any person who is the owner or lessor of property possessed used or occupied by the company;

                    (m)  to convene and hold meetings of the members or creditors of the company for any purpose the administrator thinks fit;

                     (n)  to make interim or other distributions of the proceeds of the realisation of the assets available for the payment of claims of creditors as provided in this deed;

                     (o)  to appoint agents to do any business or to attend to any matter or affairs of the company that the administrator is unable to do, or that it is unreasonable to expect the administrator to do, in person;

                     (p)  to engage or discharge employees on behalf of the company;

                     (q)  to appoint a solicitor, accountant or other professionally qualified person to assist the administrator;

                      (r)  to permit any person authorised by the administrator to operate any account in the name of the company;

                      (s)  to sell, call in or convert into money any of the property of the company, to apply the money in accordance with this deed and otherwise effectively and properly to carry out his or her duties as administrator;

                      (t)  to do all acts and execute in the name and on behalf of the company all deeds, receipts and other documents, using the company’s common or official seal when necessary;

                     (u)  subject to the Bankruptcy Act 1966, to prove in the bankruptcy of any contributory or debtor of the company or under any deed executed under that Act;

                     (v)  subject to the Act, to prove in the winding up of any contributory or debtor of the company or under any scheme of arrangement entered into, or deed of company arrangement executed, under the Act;

                    (w)  to draw, accept, make or endorse any bill of exchange or promissory note in the name and on behalf of the company;

                     (x)  to take out letters of administration of the estate of a deceased contributory or debtor, and do any other act necessary for obtaining payment of any money due from a contributory or debtor, or the estate of a contributory or debtor, that cannot be conveniently done in the name of the company;

                     (y)  to bring or defend an application for the winding up of the company;

                     (z)  to carry on the business of the company on such terms and conditions and for such purposes and times and in such manner as the administrator thinks fit subject only to the limitations imposed by this deed;

                    (za)  to sell any or all of the property of the company including the whole of the business or undertaking of the company at any time the administrator thinks fit, either by public auction or by private contract and either for a lump sum or for a sum payable by instalments or for a sum on account and to obtain a mortgage charge or encumbrance for the balance or otherwise;

                   (zb)  to close down the whole or any part of any business of the company;

                    (zc)  to enter into and complete any contract for the sale of shares in the company;

                   (zd)  to compromise any debts or claims brought by or against the company on such terms as the administrator thinks fit and to take security for the discharge of any debt forming part of the property of the company;

                    (ze)  to pay any class of creditors in full, subject to Subdivision D of Division 6 of Part 5.6 of the Act;

                    (zf)  to do anything that is incidental to exercising a power set out in this clause;

                    (zg)  to do anything else that is necessary or convenient for the purpose of administering this deed.

3  Termination of deed where arrangement fails

                   If the administrator or the committee of inspection determines that it is no longer practicable or desirable either to continue to carry on the business of the company or to implement this deed, the administrator:

                     (a)  may cease to carry on the business of the company except so far as is necessary for the beneficial winding up of the company;

                     (b)  must summon a meeting of creditors for the purpose of passing a resolution under section 445C(b) of the Act; and

                     (c)  must forward to each creditor not less than 14 days prior to the meeting an up‑to‑date report as to the position of the company accompanied by such financial statements as the administrator thinks fit, together with a statement that he or she does not think it practicable or desirable to carry on the business of the company or to continue this deed and that this deed will be terminated if the company’s creditors resolve.

4  Priority

                   The administrator must apply the property of the company coming under his or her control under this deed in the order of priority specified in section 556, 560 or 561 of the Act.

5  Discharge of debts

                   The creditors must accept their entitlements under this deed in full satisfaction and complete discharge of all debts or claims which they have or claim to have against the company as at the day when the administration began and each of them will, if called upon to do so, execute and deliver to the company such forms of release of any such claim as the administrator requires.

6  Claims extinguished

                   If the administrator has paid to the creditors their full entitlements under this deed, all debts or claims, present or future, actual or contingent, due or which may become due by the company as a result of anything done or omitted by or on behalf of the company before the day when the administration began and each claim against the company as a result of anything done or omitted by or on behalf of the company before the day when the administration began is extinguished.

7  Bar to creditors’ claims

                   Subject to section 444D of the Act this deed may be pleaded by the company against any creditor in bar of any debt or claim that is admissible under this deed and a creditor (whether the creditor’s debt or claim is or is not admitted or established under this deed) must not, before the termination of this deed:

                     (a)  take or concur in the taking of any step to wind up the company; or

                     (b)  except for the purpose and to the extent provided in this deed, institute or prosecute any legal proceedings in relation to any debt incurred or alleged to have been incurred by the company before the day when the administration began; or

                     (c)  take any further step (including any step by way of legal or equitable execution) in any proceedings pending against or in relation to the company at the day when the administration began; or

                     (d)  exercise any right of set‑off or cross‑action to which the creditor would not have been entitled had the company been wound up at the day when the administration began; or

                     (e)  commence or take any further step in any arbitration against the company or to which the company is a party.

8  Making claims

             (1)  Subdivisions A, B, C and E of Division 6 of Part 5.6 of the Corporations Act 2001 apply to claims made under this deed as if the references to the liquidator were references to the administrator of this deed.

             (2)  For subclause (1), the remainder of that Act, and the Corporations Regulations 2001, are taken to apply, as far as practicable, as if:

                     (a)  a reference that is relevant to the liquidator were a reference in a form that is applicable to the administrator; and

                     (b)  a reference that is relevant to any other matter relating to liquidation were a reference in a form that is applicable to the administration of this deed; and

                     (c)  a reference to a relevant date were a reference to the date of the administrator’s appointment .

10  Lodging of accounts

                   Section 434 of the Act applies to the administrator as if the reference to a controller were a reference to the administrator of this deed.

11  Committee of inspection

                   For the purpose of advising and assisting the administrator of this deed, there may be a committee of inspection (the committee) to which the following rules apply:

                     (a)  the committee must consist of at least 3 and not more than 5 members;

                     (b)  the creditors must appoint the members in a general meeting;

                     (c)  a creditor is not entitled to have more than one representative (including the creditor himself or herself, if a natural person) on the committee;

                     (d)  minutes of all resolutions and proceedings of each meeting of the committee must be made and duly entered in books to be provided from time to time for that purpose by the administrator under this deed;

                     (e)  if the minutes of a meeting purport to be signed by the chairperson of the meeting at which the resolutions were passed or proceedings taken or by the chairperson of the next meeting of the committee, the minutes are prima facie evidence of the matters contained in them;

                      (f)  unless the contrary is proved, the meeting is taken to have been duly had and convened and all resolutions passed and proceedings taken at the meeting are taken to have been duly passed and taken;

                     (g)  a corporation (being otherwise qualified for membership of the committee) is not entitled to be a member of the committee but may appoint a person to represent it on the committee;

                     (h)  subsection 548(3) and sections 549, 550 and 551 of the Act apply, with such modifications as are necessary, to a committee of inspection established under this deed as if the references to the liquidator were references to the administrator of this deed and the references to contributories were deleted.

12  Termination of deed where arrangement achieves purpose

                   If the administrator has applied all of the proceeds of the realisation of the assets available for the payment of creditors or has paid to the creditors the sum of 100 cents in the dollar or any lesser sum determined by the creditors at a general meeting, the administrator must certify to that effect in writing and must within 28 days lodge with ASIC a notice of termination of this deed in the following form:

‘X PTY LIMITED

                   I, (insert name and address) as administrator of the deed of company arrangement executed on (insert date), CERTIFY that the deed has been wholly effectuated.’,

                   and the execution of the notice terminates this deed, but nothing in this clause relieves the administrator of his or her obligations under clause 10 of this deed.


Schedule 8AATrustee companies

(regulation 5D.1.01)

  

 

Item

Trustee companies

1

ANZ Trustees (Canberra) Limited

2

ANZ Trustees Limited

3

Australian Executor Trustees Limited

4

Australian Executor Trustees (Canberra) Limited

5

Australian Executor Trustees (NSW) Limited

6

Australian Executor Trustees (SA) Limited

6A

Australian Unity Trustees Limited

7

Bagot’s Executor and Trustee Company Limited

8

Elders Trustees Limited

9

Equity Trustees Limited

10

Executor Trustee Australia Limited

11

Mutual Trust Pty Ltd

12

National Australia Trustees Limited

14

Perpetual Limited

15

Perpetual Trustee Company (Canberra) Limited

16

Perpetual Trustee Company Limited

17

Perpetual Trustees Consolidated Limited

18

Perpetual Trustees Queensland Limited

19

Perpetual Trustees S.A. Limited

20

Perpetual Trustees Victoria Limited

21

Perpetual Trustees W.A. Limited

22

Plan B Trustees Limited

23

Sandhurst Trustees Limited

24

Tasmanian Perpetual Trustees Limited

25

The Myer Family Company Ltd

26

The Trust Company Limited

27

The Trust Company (Australia) Limited

27A

The Trust Company (PTCCL) Limited

28

The Trust Company (UTCCL) Limited

Schedule 8ABPrescribed State and Territory provisions for paragraph 601RAE (4)(a) of the Act

(subregulation 5D.1.04(1))

  

 

Item

State or Territory law and provisions

1

Trustee Companies Act 1984 (Vic), sections 40–42

2

Trustee Companies Act 1987 (WA), Part IV and section 34

3

Trustee Companies Act 1988 (SA), sections 15–15B and 19–21

4

Trustee Companies Act 1953 (Tas), subsections 18C (1), (3)–(13)

5

Companies (Trustees and Personal Representatives) Act (NT), section 25

Schedule 8ACPrescribed State and Territory laws and provisions for paragraph 601RAE(4)(b) of the Act—estate administration

(subregulation 5D.1.04(2) and subregulation 7.6.02(6))

  

 

Item

State or Territory law and provisions

1

Children and Young Persons (Care and Protection) Act 1998 (NSW)

2

Guardianship Act 1987 (NSW)

3

NSW Trustee and Guardian Act 2009 (NSW)

4

Victorian Civil and Administrative Tribunal Act 1998 (Vic), Part 9 of Schedule 1

5

Guardianship and Administration Act 1986 (Vic)

6

Guardianship and Administration Act 2000 (Qld)

7

Guardianship and Administration Act 1990 (WA)

8

Guardianship and Administration Act 1993 (SA)

9

Guardianship of Infants Act 1940 (SA)

10

Guardianship and Administration Act 1995 (Tas)

11

Guardianship and Custody of Infants Act 1934 (Tas)

12

Guardianship and Management of Property Act 1991 (ACT)

13

Testamentary Guardianship Act 1984 (ACT)

14

Adult Guardianship Act (NT)

15

Guardianship of Infants Act (NT)

Schedule 8ADPrescribed State and Territory laws and provisions for paragraph 601RAE(4)(b) of the Act

(subregulation 5D.1.04(3))

  

 

Item

State or Territory law and provisions

 

NEW SOUTH WALES

1A

Legal Profession Act 2004 and any regulations made under that Act

1

Probate and Administration Act 1898 and any regulations made under that Act

2

NSW Trustee and Guardian Act 2009 and any regulations made under that Act

3

Trustee Act 1925 and any regulations made under that Act

4

Trustee Companies Act 1964 and any regulations made under that Act

 

VICTORIA

5

Administration and Probate Act 1958 and any regulations made under that Act

6

Guardianship and Administration Act 1986 and any regulations made under that Act

7

Instruments Act 1958 and any regulations made under that Act

7A

Legal Profession Act 2004 and any regulations made under that Act

8

Medical Treatment Act 1988 and any regulations made under that Act

9

State Trustees (State Owned Company) Act 1994 and any regulations made under that Act

10

Trustee Act 1958 and any regulations made under that Act

 

QUEENSLAND

11

Guardianship and Administration Act 2000 and any regulations made under that Act

12

Legal Profession Act 2007 and any regulations made under that Act

13

Public Trustee Act 1978 and any regulations made under that Act

14

Succession Act 1981 and any regulations made under that Act

15

Trustee Companies Act 1968 and any regulations made under that Act

16

Trusts Act 1973 and any regulations made under that Act

17

Uniform Civil Procedure Rules 1999, Chapter 15 and rule 94

 

WESTERN AUSTRALIA

18

Guardianship and Administration Act 1990 and any regulations made under that Act

18A

Legal Profession Act 2008 and any regulations made under that Act

18B

Public Trustee Act 1941 and any regulations made under that Act

19

Trustees Act 1962 and any regulations made under that Act

 

SOUTH AUSTRALIA

20

Administration and Probate Act 1919 and any regulations made under that Act

21

Aged and Infirm Persons’ Property Act 1940 and any regulations made under that Act

22

Guardianship and Administration Act 1993 and any regulations made under that Act

23

Legal Practitioners Act 1981 and any regulations made under that Act

24

Public Trustee Act 1995 and any regulations made under that Act

25

Trustee Act 1936 and any regulations made under that Act

25A

Trustee Companies Act 1988 and any regulations made under that Act

 

TASMANIA

26

Administration and Probate Act 1935 and any regulations made under that Act

26A

Legal Profession Act 2007 and any regulations made under that Act

26B

Public Trustee Act 1930 and any regulations made under that Act

27

Supreme Court Civil Procedure Act 1932 and any regulations made under that Act

28

Trustee Act 1898 and any regulations made under that Act

 

AUSTRALIAN CAPITAL TERRITORY

29

Administration and Probate Act 1929 and any regulations made under that Act

30

Court Procedures Act 2004 and any regulations made under that Act

31

Guardianship and Management of Property Act 1991 and any regulations made under that Act

32

Legal Profession Act 2006 and any regulations made under that Act

33

Trustee Act 1925 and any regulations made under that Act

34

Trustee Companies Act 1947 and any regulations made under that Act

 

NORTHERN TERRITORY

35

Aged and Infirm Persons’ Property Act and any regulations made under that Act

36

Public Trustee Act and any regulations made under that Act

Schedule 8AERelevant State and Territory provisions

(regulation 5D.2.06)

  

 

Item

State or Territory provisions

1

Trustee Act 1925 (NSW), Part 2, Division 2

2

Trustee Act 1958 (Vic), Part I

3

Trusts Act 1973 (Qld), Part 3

4

Trustees Act 1962 (WA), Part III

5

Trustee Act 1936 (SA), Part 1

6

Trustee Act 1898 (Tas), Part II

7

Trustee Act 1925 (ACT), Part 2, Subdivision 2.2.1

8

Trustee Act (NT), Part I

Schedule 8BOption contract—prescribed indexes

(regulation 7.1.03)

  

               1  All Ordinaries Accumulation Index

               2  CAC 40 Index

               3  Deutscher Aktienindex (DAX)

               4  Dow Jones Asia‑Pacific Extra Liquid Series—Australia Equity Index

               5  Dow Jones Asia‑Pacific Extra Liquid Series—Hong Kong Equity Index

               6  Dow Jones Asia‑Pacific Extra Liquid Series—Japan Equity Index

               7  Dow Jones Asia‑Pacific Extra Liquid Series—Pan Pacific Equity Index

               8  Dow Jones Composite

               9  Dow Jones Euro STOXX 50 Index

             10  Dow Jones Global Titans 50 Index

             11  Dow Jones Industrial Average Index

             12  Dow Jones STOXX 50

             13  FT‑SE 100 Index

             14  Hang Seng Index

             15  MIB 30 Index

             16  Nasdaq 100 Index

             17  Nasdaq Composite Index

             18  Nikkei Index

             19  Share Price Index

             20  S&P 500 Composite Stock Price Index

             21  S&P/ASX 20 Share Price Index

             22  S&P/ASX 50 Share Price Index

             23  S&P/ASX 100 Accumulation Index

             24  S&P/ASX 100 Share Price Index

             25  S&P/ASX 200 Consumer Discretionary (GIC) Sector Index

             26  S&P/ASX 200 Consumer Staples (GIC) Sector Index

             27  S&P/ASX 200 Energy (GIC) Sector Index

             28  S&P/ASX 200 Financial (ex Property Trusts) (GIC) Sector Index

             29  S&P/ASX 200 Health Care (GIC) Sector Index

             30  S&P/ASX 200 Industrials (GIC) Sector Index

             31  S&P/ASX 200 Information Technology (GIC) Sector Index

             32  S&P/ASX 200 Materials (GIC) Sector Index

             33  S&P/ASX 200 Property Trusts (GIC) Sector Index

             34  S&P/ASX 200 Share Price Index

             35  S&P/ASX 200 Telecommunications Services (GIC) Sector Index

             36  S&P/ASX 200 Utilities (GIC) Sector Index

             37  S&P/ASX 300 Share Price Index

             38  S&P/ASX All Industrials Share Price Index

             39  S&P/ASX All Resources Share Price Index

             40  S&P/ASX Gold Share Price Index

             41  S&P/ASX Small Ordinaries Accumulation Index

             42  S&P/ASX Small Ordinaries Share Price Index

Schedule 8CModifications of Part 7.5 of the Act—compensation regimes

(regulation 7.5.01A)

1  Subsection 880B(1), definition of fidelity fund, subparagraph (b)(ii)

omit

markets;

insert

markets; or

2  Subsection 880B(1), definition of fidelity fund, after paragraph (b)

insert

                     (c)  the operator of the market or related body corporate of the operator of the market;

3  Subsection 881A(2)

substitute

          (1A)  If:

                     (a)  compensation arrangements under Division 4 apply to only some financial products acquired or disposed of through a licensed market; and

                     (b)  paragraphs (1)(a) and (b) are satisfied for the other products acquired or disposed of through the licensed market;

there must be compensation arrangements in relation to the other products that are approved in accordance with Division 3.

             (2)  The compensation regime that applies to a financial market is:

                     (a)  for a financial product to which Division 3 applies—the compensation regime constituted by Division 3; and

                     (b)  for a financial product to which Division 4 applies—the compensation regime constituted by Division 4.

4  Paragraph 885C(1)(b)

substitute

                     (b)  the money or other property, or the authority, was given to the participant in connection with effecting a transaction, or proposed transaction, that:

                              (i)  was covered by provisions of the operating rules of the market relating to transactions effected through the market; and

                             (ii)  related to a particular financial product that was not covered by the compensation regime constituted by Division 4; and

5  Section 885D, heading

substitute

885D  Certain losses that are or are not Division 3 losses

6  After subsection 885D(2)

Insert:

          (2A)  Despite subsection (2), if, in relation to a loss suffered by a person:

                     (a)  the requirements of subsection 885C(1) are satisfied in relation to a participant and a financial market, except that it is not reasonably apparent whether the compensation regime constituted by Division 3 or by Division 4 covered the transaction, or proposed transaction; and

                     (b)  the relevant financial market has both Division 3 and Division 4 arrangements; and

                     (c)  either:

                              (i)  the person did not (expressly or impliedly) instruct the participant to use the money or other property to enter into a transaction that would be covered by the compensation regime constituted by Division 3 or by Division 4; or

                             (ii)  if the participant had authority to enter into transactions on the person’s behalf without specific authority, there is no evidence that the participant decided to use the money or other property to enter into a transaction that would be covered by the compensation regime constituted by Division 3 or by Division 4; and

                     (d)  the participant was permitted to trade in products that would be covered by the compensation regimes constituted by Division 3 and by Division 4; and

                     (e)  it is not reasonably apparent from the usual business practice of the participant which of those transactions the participant proposed to undertake;

the loss is taken to be a Division 3 loss and not to be a loss that is connected with a financial market to which Division 4 applies.

          (2B)  Despite subsection (2), if:

                     (a)  the requirements of subsection 885C(1) are satisfied in relation to a participant and a financial market; and

                     (b)  the loss is also connected (see section 888A) with a financial market to which Division 4 applies; and

                     (c)  the person did not (expressly or impliedly) instruct the participant to use a particular one of those markets; and

                     (d)  it is not reasonably apparent from the usual business practice of the participant which of those markets the participant would use when acting for the person; and

                     (e)  the loss is connected with a transaction effected through a financial market to which Division 3 applies; and

                      (f)  a claim cannot be made, or has been disallowed, under Division 4 (see subsection 888A(1));

the loss is taken to be a Division 3 loss and not to be a loss that is connected with a financial market to which Division 4 applies.

7  Subsection 885J(1)

omit

adequate,

insert

adequate for the market, or segment of the market, for which the arrangements apply,

8  Section 887A

substitute

887A  Markets to which this Division applies

             (1)  This Division applies to a financial market that is operated by:

                     (a)  a body corporate that is a member of the SEGC; or

                     (b)  a body corporate that is a subsidiary of such a member.

             (2)  However, this Division does not apply to a market mentioned in subsection (1):

                     (a)  that the regulations state is not covered by this Division; or

                     (b)  to the extent that it involves financial products covered by the compensation regime constituted by Division 3.

9  After subsection 889J(1)

insert

          (1A)  However, a levy is payable only by an operator or a participant (including a participant who is suspended), in a financial market to which this Division applies, who is permitted to trade on that market a financial product to which this Division applies.

10  After subsection 889K(2)

insert

          (2A)  However, a levy is payable only by a participant (including a participant who is suspended), in a financial market to which this Division applies, who is permitted to trade on that market a financial product to which this Division applies.

10A  After subsection 892B(1), including the note

insert

          (1A)  Nothing in subsection (1) prevents the Minister approving, in accordance with section 884C, a change to Division 3 arrangements that includes the withdrawal of money from an account or accounts holding a fidelity fund.

11  Paragraph 892K(1)(a)

after

report

insert

for a set of compensation arrangements

Schedule 9Companies authorised to effect transfers under Part 7.11 of the Act

(regulation 7.11.01, definition of beneficial owner)

  

 

Item

Companies

1

ANZ Nominees Limited

2

CHESS Depositary Nominees Pty Limited

3

Equity Nominees Limited

4

National Nominees Limited

5

Perpetual Nominees Limited

6

Sepon (Australia) Pty Limited

7

State Street Australia Ltd

8

The Trust Company (Nominees) Limited

9

The Trust Company (PTAL) Limited


Schedule 10Disclosure of fees and other costs

(regulations 7.9.16K, 7.9.16M and 7.9.16N)

Part 1Interpretation

101  Definitions

                   In this Schedule:

activity fee, for a superannuation product, has the meaning given by subsection 29V(7) of the SIS Act.

administration fee, for a superannuation product, has the meaning given by subsection 29V(2) of the SIS Act.

advice fee:

                     (a)  for a superannuation product—has the meaning given by subsection 29V(8) of the SIS Act; and

                     (b)  for a managed investment product—means an amount that is:

                              (i)  paid or payable to a financial adviser for financial product advice to a retail client or product holder about an investment; and

                             (ii)  not included in a contribution fee, withdrawal fee, exit fee, establishment fee or management cost.

balanced investment option means an investment option in which the ratio of investment in growth assets, such as shares or property, to investment in defensive assets, such as cash or bonds, is as close as practicable to 70:30.

brokerage means an amount paid or payable to a broker for undertaking a transaction for the acquisition or disposal of a financial product.

buy‑sell spread:

                     (a)  for a superannuation product—has the meaning given by subsection 29V(4) of the SIS Act; or

                     (b)  for a managed investment product—means an amount, deducted from the value of a financial product of a product holder, that represents an apportionment, among product holders, of the actual or estimated transaction costs incurred by the managed investment scheme.

contribution fee means an amount paid or payable against the initial, and any subsequent, contributions made into a product by or for a retail client for the product.

Note:          A contribution may be made by an employer on behalf of the product holder or retail client.

distribution costs means the costs or amounts paid or payable for the marketing, offer or sale of a product.

Note:          This includes any related adviser remuneration component other than an advice fee.

establishment fee means an amount paid or payable for the establishment of a client’s interest in a product.

Note:          This does not include contribution fees paid or payable against the initial contribution into the product.

exit fee:

                     (a)  for a superannuation product—has the meaning given by subsection 29V(6) of the SIS Act; and

                     (b)  for a managed investment product—means an amount paid or payable on the disposal of all interests held in the product.

incidental fees means costs or amounts, other than costs or fees defined in this clause, that are:

                     (a)  paid or payable in relation to the product; and

                     (b)  not material to a retail client’s decision to acquire, hold or dispose of his or her interest in the product.

Example:    Cheque dishonour fees.

indirect cost of a MySuper product or an investment option offered by a superannuation entity means any amount that:

                     (a)  a trustee of the entity knows, or reasonably ought to know, will directly or indirectly reduce the return on the investment of a member of the entity in the MySuper product or investment option; and

                     (b)  is not charged to the member as a fee.

insurance fee, for a superannuation product, has the meaning given by subsection 29V(9) of the SIS Act.

investment fee, for a superannuation product, has the meaning given by subsection 29V(3) of the SIS Act.

lifecycle MySuper product has the meaning given by regulation 7.9.07N.

lifecycle stage has the meaning given by regulation 7.9.07N.

performance, of a managed investment product, a superannuation product, a MySuper product or an investment option, includes:

                     (a)  income in relation to the assets of, or attributed to, the managed investment product, the superannuation product, the MySuper product or the investment option; and

                     (b)  capital appreciation (realised or unrealised) to the value of the managed investment product, the superannuation product, the MySuper product or the investment option.

performance fee means an amount paid or payable, calculated by reference to the performance of a managed investment product, a superannuation product, a MySuper product or an investment option.

service fees means advice fees, special request fees and switching fees.

special request fees includes fees paid or deducted from a product holder’s managed investment product for a request made to the managed investment scheme.

Example:    This applies to a fee for a request for additional information from a managed investment scheme.

switching fee:

                     (a)  for a superannuation product—has the meaning given by subsection 29V(5) of the SIS Act; or

                     (b)  for a managed investment product—means an amount paid or payable when a product holder transfers all or part of the product holder’s interest in the managed investment product from one investment option to another.

withdrawal fee means an amount, other than an exit fee, paid or payable in respect of:

                     (a)  a withdrawal; or

                     (b)  the disposal of an interest in a product.

102  Management costs

             (1)  Management costs, for a managed investment product, means any of the following:

                     (a)  an amount payable for administering the managed investment scheme;

                     (b)  for a custodial arrangement—the cost involved, or amount paid or payable, for gaining access to, or participating in, the arrangement;

                     (c)  distribution costs;

                     (d)  other expenses and reimbursements in relation to the managed investment scheme;

                     (e)  amounts paid or payable for investing in the assets of the managed investment scheme;

                      (f)  amounts deducted from a common fund by way of fees, costs, charges or expenses, including:

                              (i)  amounts retrieved by an external fund manager or a product issuer; and

                             (ii)  amounts deducted from returns before allocation to the fund;

                     (g)  estimated performance fees;

                     (h)  any other investment‑related expenses and reimbursements, including any associated with custodial arrangements.

             (2)  The following fees and costs are not management costs for a managed investment product:

                     (a)  a contribution fee;

                     (b)  transactional and operational costs;

                     (c)  an additional service fee;

                     (d)  an establishment fee;

                     (e)  a switching fee;

                      (f)  an exit fee;

                     (g)  a withdrawal fee;

                     (h)  costs (related to a specific asset or activity to produce income) that an investor would incur if he or she invested directly in the asset;

                      (i)  incidental fees.

103  Transactional and operational costs

                   Transactional and operational costs include the following:

                     (a)  brokerage;

                     (b)  buy‑sell spread;

                     (c)  settlement costs (including custody costs);

                     (d)  clearing costs;

                     (e)  stamp duty on an investment transaction.

104  Indirect cost ratio

             (1)  The indirect cost ratio (ICR), for a MySuper product or an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation entity attributed to the MySuper product or investment option.

Note:          A fee deducted directly from a member’s account is not included in the indirect cost ratio.

          (1A)  The indirect cost ratio (ICR), for an investment option offered by a managed investment scheme, is the ratio of the management costs for the option that are not deducted directly from a product holder’s account, to the total average net assets of the managed investment scheme that relates to the investment option.

Note:          A fee deducted directly from a product holder’s account is not included in the indirect cost ratio.

             (2)  The ICR for a Product Disclosure Statement is to be determined for the financial year before the Product Disclosure Statement is issued.

             (3)  The ICR for a periodic statement is to be determined over the latest reporting period.

Part 2Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning for Product Disclosure Statements

Division 1The fees and costs template for superannuation products

201  Template for superannuation products

Fees and other costs

This document shows fees and other costs that you may be charged. These fees and other costs may be deducted from your money, from the returns on your investment or from the assets of the superannuation entity as a whole.

 

Other fees, such as activity fees, advice fees for personal advice and insurance fees, may also be charged, but these will depend on the nature of the activity, advice or insurance chosen by you.

 

Taxes, insurance fees and other costs relating to insurance are set out in another part of this document.

 

You should read all the information about fees and other costs because it is important to understand their impact on your investment.

 

[If relevant] The fees and other costs for each MySuper product offered by the superannuation entity, and each investment option offered by the entity, are set out on page [insert page number].

 

[Name of superannuation product]

Type of fee

Amount

How and when paid

Investment fee

 

 

Administration fee

 

 

Buy‑sell spread

 

 

Switching fee

 

 

Exit fee

 

 

Advice fees

relating to all members investing in a particular MySuper product or investment option

 

 

Other fees and costs¹

 

 

Indirect cost ratio

 

 

1.             [If there are other fees and costs, such as activity fees, advice fees for personal advice or insurance fees, include a cross‑reference to the “Additional Explanation of Fees and Costs”.]

Division 2The fees and costs template for managed investment products

202  Template for a multiple fee structure—managed investment products

Fees and other costs

This document shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the assets of the managed investment scheme as a whole.

 

Taxes and insurance costs are set out in another part of this document.

 

You have 2 different fee payment options:

                     (a)  to pay contribution fees upfront, at the time when you make each investment into the managed investment scheme; or

                     (b)  to pay contribution fees later (for example, on the termination of your investment or by way of other increased fees).

Note:       You may pay more in total fees if you choose to pay contribution fees later.

 

You should read all the information about fees and costs because it is important to understand their impact on your investment.

 

[If relevant] Fees and costs for particular investment options are set out on page [insert page number].

 

[Name of managed investment product]

Type of fee or cost

Amount

How and when paid

 

Option to pay contribution fees upfront

Option to pay contribution fees later

 

Fees when your money moves in or out of the managed investment product

 

 

 

Establishment fee

The fee to open your investment

 

 

 

Contribution fee¹

The fee on each amount contributed to your investment

 

 

 

Withdrawal fee¹

The fee on each amount you take out of your investment

 

 

 

Exit fee¹

The fee to close your investment

 

 

 

Management costs

 

 

 

The fees and costs for managing your investment¹

The amount you pay for specific investment options is shown at page [insert page number]

 

 

 

Service fees²

 

 

 

Switching fee

The fee for changing investment options

 

 

 

1.             This fee includes an amount payable to an adviser. (See Division 4, “Adviser remuneration” under the heading “Additional Explanation of Fees and Costs”.)

2.             [If there are other service fees, such as advice fees or special request fees, include a cross‑reference to the “Additional Explanation of Fees and Costs”.]

202A  Template for single fee structure—managed investment products

Fees and other costs

This document shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the assets of the managed investment scheme as a whole.

 

Taxes and insurance costs are set out in another part of this document.

 

You should read all the information about fees and costs because it is important to understand their impact on your investment.

 

[If relevant] Fees and costs for particular investment options are set out on page [insert page number].

 

[Name of managed investment product]

Type of fee or cost

Amount

How and when paid

Fees when your money moves in or out of the managed investment product

 

 

Establishment fee

The fee to open your investment

 

 

Contribution fee¹

The fee on each amount contributed to your investment

 

 

Withdrawal fee¹

The fee on each amount you take out of your investment

 

 

Exit fee¹

The fee to close your investment

 

 

Management costs

 

 

The fees and costs for managing your investment¹

The amount you pay for specific investment options is shown at page [insert page number]

 

 

Service fees²

 

 

Switching fee

The fee for changing investment options

 

 

1.             This fee includes an amount payable to an adviser. (See Division 4, “Adviser remuneration” under the heading “Additional Explanation of Fees and Costs”.)

2.             [If there are other service fees, such as advice fees or special request fees, include a cross‑reference to the “Additional Explanation of Fees and Costs”.]

Division 3How to fill in the template

203  The preamble

                   The material in the preamble to the template should only include matters that are relevant to the product.

Example:    Insurance costs will generally not be relevant to a managed investment product.

204  Column 2—presentation of amounts

             (1)  This clause, clause 205 and clause 206 are subject to regulations 7.9.15A, 7.9.15B and 7.9.15C.

             (2)  If a particular fee or cost is not charged, ‘nil’, ‘zero’, ‘0’ or ‘not applicable’ (if it would not be misleading) must be written in column 2 opposite the type of fee or cost.

             (3)  If it is not possible to determine a single amount or percentage of a fee or cost, it may be written as a range of fees or costs.

             (4)  If the exact amount of a fee or cost paid or payable is not known, an amount that is a reasonable estimate of the amount attributable to the retail client must be shown.

             (5)  An amount set out in accordance with subclause (4) must be clearly designated as an estimate.

             (6)  If an amount or cost has a number of components, the amount of each component must be listed separately.

Example:    Management costs: 1.8% of product holder’s balance + $70 per year.

             (7)  A cost or amount paid or payable must include, if applicable:

                     (a)  GST less any reduced inputs tax credits; and

                     (b)  stamp duty.

205  Column 2—include information for each MySuper product or investment option

             (1)  The fee information must be set out:

                     (a)  for superannuation products—for each MySuper product and each investment option offered by the relevant superannuation entity; and

                     (b)  for managed investment products—for each investment option offered by the relevant managed investment scheme.

             (2)  It may be:

                     (a)  set out in the table; or

                     (b)  cross‑referenced in the table to another section of the Product Disclosure Statement that contains the relevant fee information.

206  Presentation of multiple fee payment options

                   If a superannuation entity or managed investment scheme has more than 2 options for the payment of fees:

                     (a)  the number of fee payment options must be set out in the preamble; and

                     (b)  details of all fee payment options must be set out in the template.

207  Column 3—how and when fees and costs are payable

                   Column 3 of the template must set out:

                     (a)  how the fee is or will be recovered, for example by deduction from:

                              (i)  the member’s investment balance; or

                             (ii)  the assets of the superannuation entity or managed investment scheme;

                            (iii)  contributions; or

                            (iv)  withdrawals; and

                     (b)  the recurrence of the recovery of the fee; and

                     (c)  the timing of the recovery of the fee.

208  Other material to be included in the template

             (1)  The template must clearly indicate which fees and costs are negotiable (for example, by stating in column 3 ‘The amount of this fee can be negotiated.’).

             (2)  An indication that a fee or cost is negotiable must be cross‑referenced to an explanation outside the template in the ‘Additional Explanation of Fees and Costs’ part of the fees section.

Division 4Additional explanation of fees and costs

209  Matters to be included as additional explanation of fees and costs

                   The following information, if relevant to the particular superannuation product or managed investment product, must be included under the heading ‘Additional Explanation of Fees and Costs’:

                     (a)  the explanation of the fees mentioned in footnote 1 for superannuation products and footnote 2 for managed investment products;

                     (b)  information on performance fees including:

                              (i)  a statement about how performance fees affect administration fees and investment fees for a superannuation product, or management costs for a managed investment product; and

                             (ii)  the method for calculating the fees; and

                            (iii)  the amount of the fees, or an estimate of the amount if the amount is not known;

                     (c)  for tax—a cross reference to the “Tax” part of the Product Disclosure Statement;

                    (ca)  for insurance fees and other costs relating to insurance (if relevant)—a cross reference to the “Insurance” part of the Product Disclosure Statement;

                     (d)  if the product is subject to tax—whether the benefit of any tax deduction is passed on to the investor in the form of a reduced fee or cost;

                     (e)  an explanation of adviser remuneration that forms part of any fee or cost in the table, including (if known to the product issuer):

                              (i)  the method of calculation; and

                             (ii)  the amounts of commission or the range of amounts; and

                            (iii)  whether the amounts are negotiable or rebatable; and

                            (iv)  the way in which amounts may be negotiated or rebated;

                      (f)  an explanation of advice fees;

                     (g)  for a negotiated fee or cost—contact details of the person or body with whom the fee or cost can be negotiated and the manner of negotiation;

                     (h)  worked examples (if appropriate);

                      (i)  additional details of incidental fees (if appropriate);

                      (j)  details of transactional and operational costs such as brokerage and buy‑sell spread, including:

                              (i)  a description of the cost; and

                             (ii)  the amount, or an estimate if the amount is not known; and

                            (iii)  how and when the costs are recovered; and

                            (iv)  a statement that the cost is an additional cost to the investor; and

                             (v)  whether any part of the buy‑sell spread is paid to the product issuer or an external manager;

                     (k)  the following information about fee changes:

                              (i)  if applicable, a statement about the issuer’s right to change the amount of fees without the investor’s consent;

                             (ii)  any indexation arrangements that apply;

                            (iii)  the period of advance notice required for fee changes;

                            (iv)  any change in fee structure that is dependent on a person’s employment;

                      (l)  if the issuer has instituted a flexible charging structure, for each applicable fee, if known:

                              (i)  any maximum, and when it would apply; and

                             (ii)  any waiver, and when it would not apply;

                    (m)  for a superannuation product—details regarding the protection of small accounts (member protection rules) unless already included in the Product Disclosure Statement.

Division 4ADefined fees for superannuation products

209A  Defined fees for superannuation products

                   The following definitions must be included for a superannuation product under the heading “Defined fees”:

Activity fees

                   A fee is an activity fee if:

                     (a)  the fee relates to costs incurred by the trustee [OR the trustees] of the superannuation entity that are directly related to an activity of the trustee [OR the trustees]:

                              (i)  that is engaged in at the request, or with the consent, of a member; or

                             (ii)  that relates to a member and is required by law; and

                     (b)  those costs are not otherwise charged as an administration fee, an investment fee, a buy‑sell spread, a switching fee, an exit fee, an advice fee or an insurance fee.

Administration fees

                   An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs incurred by the trustee [OR the trustees] of the entity that:

                     (a)  relate to the administration or operation of the entity; and

                     (b)  are not otherwise charged as an investment fee, a buy‑sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

Advice fees

                   A fee is an advice fee if:

                     (a)  the fee relates directly to costs incurred by the trustee [OR the trustees] of the superannuation entity because of the provision of financial product advice to a member by:

                              (i)  a trustee of the entity; or

                             (ii)  another person acting as an employee of, or under an arrangement with, the trustee [OR the trustees] of the entity; and

                     (b)  those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee.

Buy‑sell spreads

                   A buy‑sell spread is a fee to recover transaction costs incurred by the trustee [OR the trustees] of the superannuation entity in relation to the sale and purchase of assets of the entity.

Exit fees

                   An exit fee is a fee to recover the costs of disposing of all or part of members’ interests in the superannuation entity.

Indirect cost ratio

                   The indirect cost ratio (ICR), for a MySuper product or an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation entity attributed to the MySuper product or investment option.

Note:          A dollar‑based fee deducted directly from a member’s account is not included in the indirect cost ratio.

Investment fees

                   An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes:

                     (a)  fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and

                     (b)  costs incurred by the trustee [OR the trustees] of the entity that:

                              (i)  relate to the investment of assets of the entity; and

                             (ii)  are not otherwise charged as an administration fee, a buy‑sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

Switching fees

                   A switching fee is a fee to recover the costs of switching all or part of a member’s interest in the superannuation entity from one class of beneficial interest in the entity to another.

Division 5Example of annual fees and costs

210  Example of annual fees and costs

                   The example of annual fees and costs:

                     (a)  must contain fees and costs in accordance with the table in clause 211 or 212; and

                     (b)  must be set out using the headings and the form in clause 211 or 212; and

                     (c)  must be included in the ‘Fees’ section of a Product Disclosure Statement, following the fees and costs template.

211  Superannuation products—Example of annual fees and costs for a MySuper product

                   This table gives an example of how the fees and costs for the generic MySuper product for this superannuation product can affect your superannuation investment over a 1 year period. You should use this table to compare this superannuation product with other superannuation products.

 

EXAMPLE—‑MySuper product

BALANCE OF $50 000

Investment fees

1.6%

For every $50 000 you have in the MySuper product you will be charged $800 each year

PLUS Administration fees

$52

($1 per week)

And, you will be charged $52 in administration fees regardless of your balance

PLUS Indirect costs for the MySuper product

1.2%

And, indirect costs of $600 each year will be deducted from your investment

EQUALS Cost of product

If your balance was $50 000, then for that year you will be charged fees of $1 452 for the MySuper product.

Note:       * Additional fees may apply. And, if you leave the superannuation entity early, you may also be charged exit fees of between 0% and 5% of your total account balance (between $0 and $2 500 for every $50 000 you withdraw).

212  Managed investment products—Example of annual fees and costs for a balanced investment option

Example of annual fees and costs for a balanced investment option

This table gives an example of how the fees and costs in the balanced investment option for this managed investment product can affect your investment over a 1 year period. You should use this table to compare this product with other managed investment products.

 

EXAMPLE—the Balanced Investment Option

BALANCE OF $50 000 WITH A CONTRIBUTION OF $5 000 DURING YEAR

Contribution Fees

0‑4%

For every additional $5 000 you put in, you will be charged between $0 and $200.

PLUS Management Costs

1.3%

And, for every $50 000 you have in the balanced investment option you will be charged $650 each year.

EQUALS Cost of balanced investment option

 

If you had an investment of $50 000 at the beginning of the year and you put in an additional $5 000 during that year, you would be charged fees of from:

$650 to $850*

What it costs you will depend on the investment option you choose and the fees you negotiate.

* Additional fees may apply:

Establishment fee—$50

And, if you leave the managed investment scheme early, you may also be charged exit fees of between 0 and 5% of your total account balance (between $0 and $2 500 for every $50 000 you withdraw)

213  Defined benefit funds

                   An example of fees and costs is not required in a Product Disclosure Statement for a defined benefit fund.

Note:          Defined benefit fund is defined in subregulation 1.03(1) of the SIS Regulations.

Division 6How to fill in the example of annual fees and costs

214  Fees and costs must be ongoing amounts

                   The fees and costs stated in the example must be typical ongoing fees that apply to the MySuper product or investment option.

Note:          The example should not be based on “honeymoon rates”. It must be consistent with the statement for an existing member or product holder having the stated balance and level of contributions each year.

214A  Example of annual fees and costs for a MySuper product—lifecycle MySuper product

                   If the example of fees and costs for a MySuper product uses a lifecycle MySuper product, the investment fee quoted in the example must be the highest investment fee for a lifecycle stage of the lifecycle MySuper product.

215  Minimum entry balance rule

                   If the minimum balance required to enter a superannuation entity or a managed investment scheme is greater than $50 000, the example of annual fees and costs must be based on an amount that is the lowest multiple of $50 000 that exceeds the minimum entry balance.

Example:    If a superannuation entity or a managed investment scheme has a minimum entry balance of $65 000, the relevant amount for the example of annual fees and costs is $100 000.

216  Exit fees

                   If an exit fee may be charged, it must be described in footnote to the table, based on:

                     (a)  a balance of $50 000; or

                     (b)  if clause 215 applies—an amount that is a multiple of $50 000.

217  Contribution fees

             (1)  The amounts of contribution fees to be inserted in the example of annual fees and costs for a managed investment product, are applied against a $5 000 investment.

             (2)  If a Product Disclosure Statement relates to a product:

                     (a)  that is paid for by a single lump sum amount; and

                     (b)  for which no additional contributions can be made;

the example of annual fees and costs should be modified by removing references to contributions or contribution fees.

             (3)  The example must be based on a balance:

                     (a)  of $50 000; or

                     (b)  worked out in accordance with clause 215.

Note:          If there is a fee paid for the initial contribution, it should be described as the establishment fee.

218  Administration fees and investment fees for a superannuation product

Administration fees

             (1)  The example of administration fees for a MySuper product or an investment option offered by a superannuation entity is applied to an amount of $50 000 or an amount that is a multiple of $50 000 if clause 215 applies.

Note:          In calculating the amount, do not include contributions that may be made during the year.

             (2)  If there is a range in the amount of administration fees that may be charged for a MySuper product or an investment option offered by a superannuation entity, the example must use the highest administration fees in the range.

Investment fees

             (3)  The example of investment fees for a MySuper product or an investment option offered by a superannuation entity is applied to an amount of $50 000 or an amount that is a multiple of $50 000 if clause 215 applies.

Note:          In calculating the amount, do not include contributions that may be made during the year.

             (4)  If there is a range in the amount of investment fees that may be charged for a MySuper product or an investment option offered by a superannuation entity, the example must use the highest investment fees in the range.

Indirect costs for a MySuper product or investment option

             (5)  The example of indirect costs for a MySuper product or an investment option offered by a superannuation entity must be worked out by applying the indirect cost ratio for the MySuper product or the investment option to an amount of $50,000 or an amount that is a multiple of $50,000 if clause 215 applies.

218A  Management costs for a managed investment product

             (1)  The example of management costs for an investment option offered by a managed investment scheme is applied to an amount of $50 000 or an amount that is a multiple of $50 000 if clause 215 applies.

Note:          In calculating the amount, do not include contributions that may be made during the year.

             (2)  If there is a range in the amount of management costs that may be charged for an investment option offered by a managed investment scheme, the example must use the highest management costs in the range.

             (3)  Management costs that are not deducted directly from a product holder’s account must be calculated using the indirect cost ratio for the relevant investment option offered by the managed investment scheme.

             (4)  Any percentage based management costs that are deducted directly from a product holder’s account should be added to the percentage amount calculated under subclause (3).

             (5)  Any dollar based management costs that are deducted directly from a product holder’s account must be shown separately in the management costs cell.

Example 1: Management costs: 2 % deducted directly from your account + 1.6% deducted indirectly.

Example 2: Management costs: $52 per year ($1 per week) deducted directly from your account + 1.6% deducted indirectly.

Example 3: Management costs: $52 per year ($1 per week) + 1% deducted directly from your account + 1.6% deducted indirectly.

219  Withdrawal fees and exit fees

             (1)  The example of a withdrawal fee or an exit fee for a superannuation product or a managed investment product is applied against an amount of $50 000 or an amount that is a multiple of $50 000 if clause 215 applies.

             (2)  In calculating the amount, do not include contributions that may be made during the year.

220  If there is no generic MySuper product or balanced investment option

Superannuation entities

             (1)  If a superannuation entity does not offer a generic MySuper product, the example should be based on:

                     (a)  where the superannuation entity offers a balanced investment option—the balanced investment option under which most assets of the superannuation entity are invested; and

                     (b)  where the superannuation entity does not offer a balanced investment option—the investment option under which most assets of the superannuation entity are invested.

Managed investment schemes

             (2)  If a managed investment scheme does not offer a balanced investment option, the example should be based on:

                     (a)  where the scheme offers a default investment option—that option; and

                     (b)  where the scheme does not offer a default investment option—the investment option under which most assets of the scheme are invested.

Division 7Consumer Advisory Warning

221  Consumer advisory warning

 

DID YOU KNOW?

Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns.

For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% over a 30 year period
(for example, reduce it from $100 000 to $80 000).

You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.

Your employer may be able to negotiate to pay lower administration fees. Ask the fund or your financial adviser.

TO FIND OUT MORE

If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (www.moneysmart.gov.au) has a [superannuation or managed investment fee] calculator to help you check out different fee options.

222  Where to place the Consumer Advisory Warning

                   The Consumer Advisory Warning must be located at the beginning of the fees section of the Product Disclosure Statement.

Part 3Fees and costs in periodic statements

Division 1Other Management Costs

301  Indirect costs related to investment and administration of accounts

             (1)  The following text and the appropriate amount, in dollars, must be inserted after the part of the periodic statement that itemises transactions during the period.

 

Indirect costs of your investment

                   This approximate amount has been deducted from your investment and includes amounts that have reduced the return on your investment but are not charged directly to you as a fee.

             (2)  The amount inserted must include:

                     (a)  for a MySuper product or an investment option offered by a superannuation entity—the indirect costs for the MySuper product or investment option; and

                     (b)  for an investment option offered by a managed investment scheme—all management costs not deducted directly from a product holder’s account during the reporting period.

             (3)  The amount must be shown as a single total amount in dollars.

             (4)  The amount for a managed investment product must be calculated by multiplying the indirect cost ratio for the relevant investment option by the product holder’s average account balance for the option over the reporting period.

Division 2Total fees

302  Total of fees in the periodic statement

             (1)  The following text and the appropriate amount, in dollars, must be displayed:

                     (a)  at the end of the part of the periodic statement that itemises transactions during the period; or

                     (b)  in a summary part of the periodic statement.

TOTAL FEES YOU PAID

This approximate amount includes all the fees and costs which affected your investment during the period.

             (2)  The total fees you paid are the total of all fees and costs disclosed in the periodic statement.

Division 3Additional Explanation of Fees and Costs

303  Matters to be included as additional explanation of fees and costs

Superannuation products

             (1)  The following information must be included in the periodic statement for a superannuation product under the heading “Additional Explanation of Fees and Costs”, if it has not been included in another part of the periodic statement:

                     (a)  details of any activity fees, advice fees and insurance fees that were incurred by the member during the period;

                     (b)  for a superannuation product that is subject to tax—whether the benefit of any tax deduction has been passed on to the investor in the form of a reduced fee or cost.

Managed investment products

             (2)  The following information must be included in the periodic statement under the heading “Additional Explanation of Fees and Costs”, if it has not been included in another part of the periodic statement:

                     (a)  details of incidental fees, such as cheque dishonour fees, that were incurred by the product holder during the period;

                     (b)  details of any service fees that may have been incurred by the product holder;

                     (c)  for a managed investment product that is subject to tax—whether the benefit of any tax deduction has been passed on to the investor in the form of a reduced fee or cost.


Schedule 10AModifications of Part 7.9 of the Act

(regulations 7.9.02, 7.9.04, 7.9.05, 7.9.06, 7.9.09C, 7.9.11C, 7.9.11N, 7.9.11V, 7.9.12, 7.9.24, 7.9.27, 7.9.30, 7.9.43, 7.9.47, 7.9.51, 7.9.56, 7.9.60, 7.9.61, 7.9.63, 7.9.73 and 8.4.02)

Part 1Modifications relating to sub‑plans

  

1.1  Paragraph 1012D(10)(b)

substitute

                     (b)  a superannuation product is the same as another superannuation product only if the other superannuation product is:

                              (i)  an interest in the same sub‑plan; or

                             (ii)  if there is no sub‑plan—an interest in the same fund.

Part 2Modifications relating to Product Disclosure Statements for RSA products

  

2.1  After subsection 1012D(9B)

insert

Recommendation, issue or sale situation—takeover or merger

          (9C)  In a recommendation situation, issue situation or sale situation, the issuer does not have to give a Product Disclosure Statement if a person:

                     (a)  becomes the holder of an RSA with an RSA institution; and

                     (b)  does so as a direct result of:

                              (i)  the takeover of the RSA provider with which the person previously held an RSA by:

                                        (A)  the RSA institution; or

                                        (B)  a corporation that is a related corporation of the RSA institution; or

                             (ii)  a merger involving the RSA provider with which the person previously held an RSA and which results in the creation of the RSA institution; or

                            (iii)  the transfer of any, or all of, the assets and liabilities of the RSA provider with which the person previously held an RSA to the RSA institution:

                                        (A)  under a provision of the Banking Act 1959, the Life Insurance Act 1995 or of any other law of the Commonwealth, a State or a Territory; or

                                        (B)  under a voluntary transfer of engagements; or

                                        (C)  on the request of the Australian Prudential Regulation Authority.

Part 3Modifications relating to insurance options under contract associated with superannuation interest

  

3.1  After subsection 1012D(9B)

insert

Insurance options

          (9C)  A product issuer does not have to give a Product Disclosure Statement to a person if:

                     (a)  a product holder seeks to change the coverage of insurance options under a contract associated with a superannuation interest; and

                     (b)  information in relation to the change of insurance options has not already been given in a periodic statement or in accordance with other periodic reporting requirements under Division 3.

          (9D)  If subsection (9C) applies:

                     (a)  the product issuer must ensure that the product holder has sufficient information to enable the product holder to make an informed decision; and

                     (b)  that subsection does not prevent the product issuer from complying with paragraph (a) by giving the product holder a Product Disclosure Statement.

Part 5AModifications for margin loan

  

5A.1  Section 1011B, after definition of regulated person

insert

Regulations means the Corporations Regulations 2001.

5A.2  Subsection 1013C(1)

substitute

             (1)  A Product Disclosure Statement for a margin loan to which Subdivision 4.2A of Division 4 of Part 7.9 of the Corporations Regulations 2001 applies must:

                     (a)  include the statements and information required by regulations made for this paragraph; and

                     (b)  be in the form required by regulations made for this paragraph.

          (1A)  If a law other than this Act or regulations under this Act requires the responsible person for the Product Disclosure Statement:

                     (a)  to give, disclose or provide a matter; or

                     (b)  to include a matter in the Statement;

the Statement may make provision for the matter by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

          (1B)  In addition to subsection (1A), a Product Disclosure Statement may make provision for a matter contained in writing by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

          (1C)  If a Product Disclosure Statement applies, adopts or incorporates a matter contained in writing:

                     (a)  the applied, adopted or incorporated matter forms part of the Statement; and

                     (b)  the responsible person for the Statement is not required to give the document which provides for the matter to a person (as part of giving the Statement or later) if that person has not asked for the document; and

                     (c)  the responsible person for the Statement must give the document which provides for the matter to a person if that person asks for the document.

          (1D)  The regulations may prescribe requirements for applying, adopting, or incorporating a matter contained in writing in a Product Disclosure Statement.

          (1E)  A Product Disclosure Statement may refer to information, other than information to which subsection (1A) or (1B) applies, that is set out in another document; and

           (1F)  If the Product Disclosure Statement refers to other information as permitted by subsection (1E), that information does not form part of the Statement.

Note:          Although the information mentioned in subsection (1F) would not form part of the Product Disclosure Statement, it would be subject to requirements imposed by the Act or these Regulations such as the prohibition on making misleading or deceptive statements.

5A.3  Section 1013D

omit

5A.4  Section 1013E

omit

5A.5  Section 1013L

substitute

1013L  When Product Disclosure document may consist of 2 or more documents

                   A Product Disclosure Statement may consist of 2 or more documents, only if:

                     (a)  one of the documents is a document that complies with the requirements for a Product Disclosure Statement under this Act and the Regulations; and

                     (b)  the other document or documents contain a matter in writing that is applied, adopted or incorporated by the document mentioned in paragraph (a).

5A.6  Subdivision D, Division 2

omit

5A.7  Subsection 1015D(3)

omit

Part 5BModifications for superannuation products to which Subdivision 4.2B of Division 4 of Part 7.9 applies

  

5B.1  Section 1011B, after definition of regulated person

insert

Regulations means the Corporations Regulations 2001.

5B.2  Subsection 1013C(1)

substitute

             (1)  A Product Disclosure Statement for a superannuation product to which Subdivision 4.2B of Division 4 of Part 7.9 of the Corporations Regulations 2001 applies must:

                     (a)  include the statements and information required by regulations made for this paragraph; and

                     (b)  be in the form required by regulations made for this paragraph.

          (1A)  If a law other than this Act or regulations under this Act requires the responsible person for the Product Disclosure Statement:

                     (a)  to give, disclose or provide a matter; or

                     (b)  to include a matter in the Statement;

the Statement may make provision for the matter by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

          (1B)  In addition to subsection (1A), a Product Disclosure Statement may make provision for a matter contained in writing by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

          (1C)  If a Product Disclosure Statement applies, adopts or incorporates a matter contained in writing:

                     (a)  the applied, adopted or incorporated matter forms part of the Statement; and

                     (b)  the responsible person for the Statement is not required to give the document which provides for the matter to a person (as part of giving the Statement or later) if that person has not asked for the document; and

                     (c)  the responsible person for the Statement must give the document which provides for the matter to a person if that person asks for the document.

          (1D)  The regulations may prescribe requirements for applying, adopting, or incorporating a matter contained in writing in a Product Disclosure Statement.

          (1E)  A Product Disclosure Statement may refer to information, other than information to which subsection (1A) or (1B) applies, that is set out in another document; and

           (1F)  If the Product Disclosure Statement refers to other information as permitted by subsection (1E), that information does not form part of the Statement.

Note:          Although the information mentioned in subsection (1F) would not form part of the Product Disclosure Statement, it would be subject to requirements imposed by the Act or these Regulations such as the prohibition on making misleading or deceptive statements.

5B.3  Section 1013D

omit

5B.4  Section 1013E

omit

5B.5  Section 1013L

substitute

1013L  When Product Disclosure Statement may consist of 2 or more documents

                   A Product Disclosure Statement may consist of 2 or more documents only if:

                     (a)  one of the documents is a document that complies with the requirements for a Product Disclosure Statement under this Act and the Regulations; and

                     (b)  the other document or documents contain a matter in writing that is applied, adopted or incorporated by the document mentioned in subparagraph (a).

5B.6  Subsection 1015D(3)

omit

Part 5CModifications for simple managed investment scheme

  

5C.1  Section 1011B, after definition of regulated person

insert

Regulations means the Corporations Regulations 2001.

5C.2  Subsection 1013C(1)

substitute

             (1)  A Product Disclosure Statement for a simple managed investment scheme to which Subdivision 4.2C of Division 4 of Part 7.9 of the Corporations Regulations 2001 applies must:

                     (a)  include the statements and information required by regulations made for this paragraph; and

                     (b)  be in the form required by regulations made for this paragraph; and

                     (c)  relate only to 1 simple managed investment scheme.

          (1A)  If a law other than this Act or regulations under this Act requires the responsible person for the Product Disclosure Statement:

                     (a)  to give, disclose or provide a matter; or

                     (b)  to include a matter in the Statement;

the Statement may make provision for the matter by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

          (1B)  In addition to subsection (1A), a Product Disclosure Statement may make provision for a matter contained in writing by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

          (1C)  If a Product Disclosure Statement applies, adopts or incorporates a matter contained in writing:

                     (a)  the applied, adopted or incorporated matter forms part of the Statement; and

                     (b)  the responsible person for the Statement is not required to give the document which provides for the matter to a person (as part of giving the Statement or later) if that person has not asked for the document; and

                     (c)  the responsible person for the Statement must give the document which provides for the matter to a person if that person asks for the document.

          (1D)  The regulations may prescribe requirements for applying, adopting, or incorporating a matter contained in writing in a Product Disclosure Statement.

          (1E)  A Product Disclosure Statement may refer to information, other than information to which subsection (1A) or (1B) applies, that is set out in another document; and

           (1F)  If the Product Disclosure Statement refers to other information as permitted by subsection (1E), that information does not form part of the Statement.

Note:          Although the information mentioned in subsection (1F) would not form part of the Product Disclosure Statement, it would be subject to requirements imposed by the Act or these Regulations such as the prohibition on making misleading or deceptive statements.

5C.2  Section 1013D

omit

5C.3  Section 1013E

omit

5C.4  Section 1013L

substitute

1013L  When Product Disclosure Statement may consist of 2 or more documents

                   A Product Disclosure Statement may consist of 2 or more documents only if:

                     (a)  one of the documents is a document that complies with the requirements for a Product Disclosure Statement under this Act and the Regulations; and

                     (b)  the other document or documents contain a matter in writing that is applied, adopted or incorporated by the document mentioned in subparagraph (a).

5C.5  Subsection 1015D(3)

omit

Part 6Modifications relating to application forms and Product Disclosure Statements for standard employer‑sponsor arrangements and successor funds

  

6.1  After subsection 1016A(2)

insert

          (2A)  Subsection (2) does not apply in relation to a member who:

                     (a)  held an interest in a superannuation fund as a standard employer‑sponsored member; and

                     (b)  is issued with an interest in relation to another sub‑plan of the superannuation fund as a result of a transfer related to the cessation of the member’s employment with the employer‑sponsor.

6.2  After subsection 1016A(3)

insert

          (3A)  Subsection (3) does not apply in relation to a superannuation product if:

                     (a)  the issuer is a public offer entity that is a successor fund; and

                     (b)  an employer became a standard employer‑sponsor of a fund in the following way:

                              (i)  the employer was a standard employer‑sponsor of a fund (fund 1);

                             (ii)  the benefits of members in fund 1 were transferred to a successor fund;

                            (iii)  the employer was a standard employer‑sponsor of fund 1 immediately before those benefits were so transferred;

                            (iv)  the employer was a standard employer‑sponsor of the successor fund immediately after those benefits were so transferred.

6.3  After subsection 1012D(9)

insert

Recommendation, issue or sale situation—successor fund

          (9A)  In a recommendation situation, issue situation or sale situation, a regulated person does not have to give the client a Product Disclosure Statement if:

                     (a)  the financial product is an RSA product; and

                     (b)  subsection 1012I(2) applies.

Part 6AModifications relating to MySuper measures

  

6A.1  After subsection 1017BA(4)

Insert:

       (4AA)  Despite paragraph 1539(a) of the Act, this section applies, to the extent that it relates to MySuper products, on and after 31 December 2013.

Part 7Modifications relating to life pensioners, members subject to compulsory protection of small amounts and members with small amounts that are expected to grow quickly

  

7.1  After subsection 1017D(7)

insert

             (8)  The trustee of a fund need not give a periodic statement or other information to a member:

                     (a)  in relation to any period during which the member is a life pensioner of the fund; or

                     (b)  if the member is a pensioner of the fund, and has requested that that information not be provided.

             (9)  Subsection (8) does not apply to information mentioned in subregulation 7.9.21A (1) of the Corporations Regulations 2001.

           (10)  If, at the end of a reporting period, a member of a regulated superannuation fund is a protected member, the trustee need give the member only the following information in the periodic statement for that reporting period:

                     (a)  the contact details of the fund;

                     (b)  either:

                              (i)  the amount of the member’s withdrawal benefit at the end of the reporting period; or

                             (ii)  the total of the amounts that have been received by the fund in respect of the member;

                     (c)  in so far as applicable, the information mentioned in subregulation 7.9.21(1) of the Corporations Regulations 2001.

           (11)  If, in relation to a member of a fund, the trustee of the fund takes advantage of subsections (12) to (15), the trustee must not, in relation to that member, take advantage of subsection (10).

           (12)  If, at the end of a reporting period, the trustee of a fund has a reasonable expectation that a particular protected member will have a withdrawal benefit of at least $1 500 within 12 months after the end of that reporting period, the trustee need not show, in the periodic statement, the effect of the member‑protection standards.

           (13)  For subsection (12), a trustee is not taken to have a reasonable expectation that a member will have a withdrawal benefit of at least $1 500 within the period of 12 months referred to in that subsection if termination of the member’s employment with a current employer (not being an employer who or that is an associate, within the meaning of paragraph 70(a) of the SIS Act, of the member) would be likely to result in the member’s withdrawal benefit being below $1 500 at the end of that period.

           (14)  If, at the end of the 12‑month period, the member’s withdrawal benefit has not reached $1 500, the trustee must show, in the periodic statement provided to the member for each reporting period ending on or after the end of the 12‑month period, the effect of the member‑protection standards.

           (15)  The trustee of a fund must not take advantage of subsection (12) in respect of a person more than once unless, after an occasion on which the trustee does so but before the next occasion, the member leaves and rejoins the fund.

           (16)  In this section:

mandated employer‑financed benefits has the same meaning as in subregulation 5.01(1) of the Superannuation Industry (Supervision) Regulations 1994.

member protection standards has the same meaning as in the Superannuation Industry (Supervision) Regulations 1994.

protected member has the same meaning as in the Superannuation Industry (Supervision) Regulations 1994.

           (17)  For the definition of protected member in subsection (16), a benefit in a fund is taken to contain or to have contained mandated employer‑financed benefits unless:

                     (a)  if the benefits arose in relation to contributions made before 1 July 1995—the trustee of the fund reasonably believes otherwise; or

                     (b)  if the benefits arose in relation to contributions made on or after 1 July 1995—the trustee of the fund knows otherwise.

Part 8Modifications relating to periodic statements for RSA providers

  

8.1  After subsection 1017D(7)

insert

             (8)  If:

                     (a)  a person ceases to be an RSA holder before RSA information in respect of a particular reporting period (the relevant period) is given; and

                     (b)  either:

                              (i)  the RSA provider gives, or intends to give, information to the person in respect of a reporting period that is the same as, or includes the whole of, the relevant period; or

                             (ii)  if the person ceases to be an RSA holder by reason of death—the RSA provider complies in relation to the person with the relevant requirements of this Act and the regulations;

the RSA provider need not give RSA information, in respect of the relevant period, to or in relation to the person.

             (9)  If, at the end of a reporting period, an RSA holder is a protected RSA holder, the RSA provider need give the RSA holder only the following information for the reporting period:

                     (a)  the contact details of the RSA provider;

                     (b)  either:

                              (i)  the amount of the RSA holder’s withdrawal benefit at the end of the reporting period; or

                             (ii)  the total of the amounts that have been received by the RSA provider in respect of the RSA holder;

                     (c)  the effective rate of net interest applied to the RSA for each year of the previous 5 years ending at the end of the reporting period;

                     (d)  the compound average of the annual effective rate of net interest applied to the RSA for each year of the previous 5 years ending at the end of the reporting period;

                     (e)  details (in summary form) of arrangements that the RSA provider has to deal with inquiries or complaints;

                      (f)  a statement that other information is available on request;

                     (g)  a suggestion that the RSA holder may wish to consider:

                              (i)  other superannuation arrangements that may provide a greater return over the long term; and

                             (ii)  seeking advice on alternative investment strategies that may be more suitable;

                     (h)  if the RSA provider reduced the RSA holder’s benefits in connection with payment of a superannuation contributions surcharge or an advance instalment of surcharge:

                              (i)  the amount deducted; and

                             (ii)  if there is a difference between the amount deducted and the amount assessed under subsection 15(1) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 or between the amount deducted and the amount determined under subsection 15(2) of that Act—a statement explaining the difference.

           (10)  A nil amount need not be disclosed.

           (11)  If, in relation to an RSA holder, the RSA provider takes advantage of subsections (13) to (16), the RSA provider must not, in relation to the RSA holder, take advantage of subsection (9).

           (12)  If, at the end of a reporting period, an RSA has not been in existence for 5 years, the references in paragraphs (9)(c) and (d) to 5 years are taken to be references to the whole period of existence of the RSA.

           (13)  If, at the end of a reporting period, an RSA provider has a reasonable expectation that an RSA holder will have a withdrawal benefit of at least $1 500 within 12 months after the end of the reporting period, the RSA provider need not show, in RSA information provided to the RSA holder, the effect of the RSA holder‑protection standards.

           (14)  For subsection (12), an RSA provider is not taken to have a reasonable expectation that the RSA holder will have a withdrawal benefit of $1 500 within the period of 12 months mentioned in that subsection if termination of the RSA holder’s employment with a current employer would be likely to result in the RSA holder’s withdrawal benefit being below $1 500 at the end of that period.

           (15)  If, at the end of the 12‑month period, the RSA holder’s withdrawal benefit has not reached $1 500, the RSA provider must show, in RSA information provided to the RSA holder for each reporting period ending on or after the end of the 12‑month period, the effect of the RSA holder‑protection standards.

           (16)  An RSA provider must not take advantage of subsection (13) in respect of a person more than once unless, after an occasion on which the RSA provider does so but before the next occasion, the person ceases to be the holder of the RSA and subsequently becomes the holder of an RSA provided by the same RSA provider.

           (17)  In this section:

mandated employer‑financed benefits has the same meaning as in the Retirement Savings Accounts Regulations 1997.

protected member has the same meaning as in the Retirement Savings Accounts Regulations 1997.

RSA holder‑protection standards has the same meaning as in the Retirement Savings Accounts Regulations 1997.

Part 9Modifications relating to periodic statements for superannuation entities and RSA providers

  

9.1  After subsection 1017C(7)

insert

          (7A)  If:

                     (a)  a concerned person requests information under subsection (2) or (3) in relation to a facility, under the concerned person’s existing holding of a superannuation product, to modify:

                              (i)  an investment strategy; or

                             (ii)  a contribution level; or

                            (iii)  insurance coverage; and

                     (b)  the information has not already been given in a periodic statement or in accordance with other periodic reporting requirements under Division 3;

it is sufficient compliance with a requirement imposed by this section if the responsible person provides an up to date Product Disclosure Statement that includes information on the ability and effect of making the modification.

Part 10Modifications relating to ongoing disclosure of material changes and significant events in relation to superannuation products and RSAs

  

10.1  After subsection 1017B(5)

insert

Provision of advice before event

          (5A)  For a superannuation product or an RSA product, if a product holder would reasonably be expected to be informed of:

                     (a)  a decision of the issuer; or

                     (b)  the winding‑up or termination of the superannuation entity;

before it occurs, the issuer must give the product holder information about the event as soon as practicable after it becomes reasonable for the issuer to expect that the event will happen (except that the information does not need to be given more than 3 months before the expected date of the event).

Changes to governing rules or terms and conditions

          (5B)  For subsections 1017B(5), (6) and (7) a reference to an event includes the following:

                     (a)  a change to the governing rules of a superannuation entity (other than a change that gives effect to a payment split) of a kind that has an adverse effect on:

                              (i)  the amount of the relevant financial product; or

                             (ii)  the benefits to which the holder of the relevant financial product may become entitled; or

                            (iii)  the circumstances in which the benefits to which the holder of the relevant financial product may become entitled would become payable;

                     (b)  a change to the terms and conditions of an RSA (other than a change that gives effect to a payment split) of a kind that has an adverse effect on:

                              (i)  the amount of the RSA; or

                             (ii)  the benefits to which the RSA holder may become entitled; or

                            (iii)  the circumstances in which the benefits to which the RSA holder may become entitled would become payable;

                     (c)  any other change in relation to an RSA, caused by any other act carried out or consented to by the issuer, of a kind that has an adverse effect on:

                              (i)  the amount of the RSA; or

                             (ii)  the benefits to which the RSA holder may become entitled; or

                            (iii)  the circumstances in which the benefits to which the RSA holder may become entitled would become payable.

Notice of non‑compliance

          (5C)  If the issuer of a superannuation product receives a notice of non‑compliance, the issuer must give to each product holder:

                     (a)  a statement of the circumstances (including details of the non‑compliance) that gave rise to the issue of the notice; and

                     (b)  a statement of the effect on the fund of the issue of the notice (including details of the effect on the entity’s taxation position); and

                     (c)  details of action that the issuer has taken, or proposes to take, to have the entity become a complying fund or a pooled superannuation trust for the purposes of Division 2 of Part 5 of the Act.

          (5D)  For subsection (5C), a notice of non‑compliance means a notice issued under section 40 of the SIS Act to the trustee of a fund stating that the fund is not a complying fund or a pooled superannuation trust.

Fund and RSA transfers

          (5E)  For subsections (5), (6) and (7), a reference to an event includes:

                     (a)  in relation to a superannuation product:

                              (i)  the transfer of a member to a different category of membership or to a different fund; and

                             (ii)  the transfer of the benefits of a member to an RSA or EPSSS (otherwise than under a payment split); and

                     (b)  in relation to an RSA product—the transfer of an amount of an RSA (otherwise than under a payment split) to:

                              (i)  another RSA offered by an RSA product issuer; or

                             (ii)  a superannuation entity; or

                            (iii)  an EPSSS.

10.2  After subsection 1017B(9)

insert

           (10)  This section does not apply to a change or event in relation to a superannuation product or an RSA product that relates to a payment split in respect of the product.

           (11)  This section does not apply to a change or event in relation to a superannuation product or an RSA product if the change or event happens because of a transfer in accordance with paragraph 6.29(1)(ba) of the Superannuation Industry (Supervision) Regulations 1994 in respect of the product.

Part 11Modifications relating to charges for information requested

  

11.1  After subsection 1017C(8)

insert

          (8A)  The obligation of a responsible person under this section to give information on request by a person arises only if the person pays the amount specified by the responsible person as the charge for giving the information.

          (8B)  The amount of the charge must not exceed the reasonable cost to the responsible person of giving the information (including all reasonably related costs—for example, costs of searching for, obtaining and collating the information).

          (8C)  A member who acts as a representative for or on behalf of a policy committee is not liable to any charge for information given to the member in that capacity.

          (8D)  In the case of information to be supplied to a concerned person under Subdivision 5.9 of Part 7.9 of the Corporations Regulations 2001, a charge may be made only if:

                     (a)  the person to whom the information is to be given has requested the information; and

                     (b)  the person had been given the same information during the period of 12 months immediately preceding the date on which the request is made.

Part 12Modifications relating to information when member leaves a fund

  

12.1  After subsection 1017D(3)

insert

          (3A)  For a superannuation product or an RSA product, the periodic statement in relation to the reporting period mentioned in paragraph 1017D(2)(d) must be given as soon as the issuer becomes aware that that person or another person (the former product holder) has ceased to hold the product, and, in particular, the issuer must make reasonable efforts to give the information within 1 month after becoming aware that the former product holder has ceased to hold the product.

          (3B)  The issuer of a superannuation product or an RSA product must make all reasonable efforts:

                     (a)  to give the information about the amount of insured death or disability benefits to which the former product holder may have been entitled; and

                     (b)  to give the information about a continuation option (if any) applying to those benefits (as mentioned in either paragraph 7.9.54(b) or 7.9.65(b) of the Corporations Regulations 2001) in a reasonable time before the option lapses.

          (3C)  Subject to subsection (3D), if a person ceases to hold a superannuation product or RSA product:

                     (a)  after the end of the completed reporting period (the completed period); and

                     (b)  before the periodic report is issued for that period;

the information required by this section to be given to or in relation to the person may be given in respect of the period consisting of the completed period and the period mentioned in paragraph 1017D(2)(d) instead of the period in respect of the person’s periodic statement for the period mentioned in paragraph 1017D(2)(d).

          (3D)  Subsection (3C) does not apply if the period mentioned in paragraph 1017D(2)(d) is greater than:

                     (a)  for a particular superannuation product—6 months; or

                     (b)  for a particular RSA product—3 months.

Part 13Modifications relating to exceptions to exit reporting period provisions

  

13.1  After subsection 1017D(7)

insert

             (8)  An RSA provider need not give information under this section to the holder of an RSA product who is transferring the amount of the RSA product to another RSA, a superannuation entity or an EPSSS if:

                     (a)  the RSA holder has received sufficient information under Subdivision 5.8 of Part 7.9 of the Corporations Regulations 2001 to enable the RSA holder to understand the effect of the transfer; and

                     (b)  the RSA provider reasonably believes that the RSA holder does not need the information because the RSA holder has received or will receive from the RSA institution, or the trustee of the superannuation entity or EPSSS to which the amount is being transferred, information relevant to the RSA holder in respect of the exit reporting period, to the same general effect as that required under Subdivisions 5.2 and 5.3 of Part 7.9 of the Corporations Regulations 2001.

             (9)  A superannuation product provider need not give information under this section to the holder of a superannuation product who is transferring to another superannuation entity or to an EPSSS, or whose benefits are being transferred into an RSA if:

                     (a)  the product holder has received sufficient information under Subdivision 5.8 of Part 7.9 of the Corporations Regulations 2001 to enable the product holder to understand the effect of the transfer; and

                     (b)  the superannuation product provider reasonably believes that the product holder does not need the information because the product holder has received or will receive, from the RSA institution, or from the trustee of the superannuation entity or EPSSS to which the amount is being transferred, information relevant to the product holder in respect of the exit reporting period, to the same general effect as that required under Subdivision 5.2 of Part 7.9 of the Corporations Regulations 2001.

Part 14Modifications relating to obligation to give information about financial products

  

14.1  After subsection 1017B(7)

insert

          (7A)  Subject to subsections (7B) and (7C), this section does not apply if:

                     (a)  the responsible person has an address for a concerned person, and:

                              (i)  is satisfied on reasonable grounds that that address is incorrect; and

                             (ii)  has taken reasonable steps to locate the concerned person but has been unable to do so; or

                     (b)  the responsible person has no address for the concerned person, and:

                              (i)  has been unable to obtain an address for the concerned person; and

                             (ii)  has taken reasonable steps to locate the concerned person, but has been unable to do so.

          (7B)  If the responsible person has refrained, in reliance on subsection (7A), from giving information to a concerned person, the responsible person must give information to the concerned person if the responsible person later becomes aware of the concerned person’s address or location.

          (7C)  Subsection (7B) applies only in respect of information that the responsible person becomes liable to give to the concerned person after becoming aware of the concerned person’s address or location.

14.2  After subsection 1017C(8)

insert

          (8A)  Subject to subsections (8B) and (8C), this section does not apply if:

                     (a)  the responsible person has an address for a concerned person, and:

                              (i)  is satisfied on reasonable grounds that that address is incorrect; and

                             (ii)  has taken reasonable steps to locate the concerned person but has been unable to do so; or

                     (b)  the responsible person has no address for the concerned person, and:

                              (i)  has been unable to obtain an address for the concerned person; and

                             (ii)  has taken reasonable steps to locate the concerned person, but has been unable to do so.

          (8B)  If the responsible person has refrained, in reliance on subsection (8A), from giving information to a concerned person, the responsible person must give information to the concerned person if the responsible person later becomes aware of the concerned person’s address or location.

          (8C)  Subsection (8B) applies only in respect of information that the responsible person becomes liable to give to the concerned person after becoming aware of the concerned person’s address or location.

14.3  After subsection 1017D(7)

insert

             (8)  Subject to subsections (9) and (10), this section does not apply if:

                     (a)  the issuer has an address for a holder, and:

                              (i)  is satisfied on reasonable grounds that that address is incorrect; and

                             (ii)  has taken reasonable steps to locate the holder but has been unable to do so; or

                     (b)  the issuer has no address for the holder, and:

                              (i)  has been unable to obtain an address for the holder; and

                             (ii)  has taken reasonable steps to locate the holder, but has been unable to do so.

             (9)  If the issuer has refrained, in reliance on subsection (8), from giving information to a holder, the issuer must give information to the holder if the issuer later becomes aware of the holder’s address or location.

           (10)  Subsection (9) applies only in respect of information that the issuer becomes liable to give to the holder after becoming aware of the holder’s address or location.

14.4  After subsection 1017DA(3)

insert

          (3A)  Subject to subsections (3B) and (3C), this section does not apply if:

                     (a)  the trustee has an address for a holder or former holder, and:

                              (i)  is satisfied on reasonable grounds that that address is incorrect; and

                             (ii)  has taken reasonable steps to locate the holder or former holder but has been unable to do so; or

                     (b)  the trustee has no address for the holder or former holder, and:

                              (i)  has been unable to obtain an address for the holder or former holder; and

                             (ii)  has taken reasonable steps to locate the holder or former holder, but has been unable to do so.

          (3B)  If the trustee has refrained, in reliance on subsection (3A), from giving information to a holder or former holder, the trustee must give information to the holder or former holder if the trustee later becomes aware of the holder’s or former holder’s address or location.

          (3C)  Subsection (3B) applies only in respect of information that the trustee becomes liable to give to the holder or former holder after becoming aware of the holder’s or former holder’s address or location.

Part 15Modifications for confirmation of transactions

  

15.1  After subsection 1017F(5A)

insert

          (5B)  Despite subsection (5), if:

                     (a)  the cost of a transaction (including taxes and charges) is not known at the time at which confirmation of the transaction would be required to be given; and

                     (b)  all of the other information required under subsection (7) in relation to confirmation of the transaction is known at that time;

the confirmation of the transaction is to be provided in accordance with subsection (5C).

          (5C)  Confirmation is to be provided as follows:

                     (a)  all of the information required, except for the cost of the transaction, is to be provided as soon as practicable in accordance with subsection (5);

                     (b)  the cost of the transaction may be provided in whichever of the following can be done first:

                              (i)  a secondary confirmation notice provided as soon as practicable after the cost is known;

                             (ii)  a standing facility mentioned in paragraph 1017F(5)(b);

                            (iii)  the first periodic report under section 1017D after the cost is known.

Part 16Modifications relating to reporting periods

  

16.1  Paragraph 1017D(2)(a)

substitute

                     (a)  each reporting period lasts for:

                              (i)  a period, not exceeding 1 year, fixed by the issuer; or

                             (ii)  a longer period fixed by ASIC on the application of the issuer to which the period relates;

Part 17Modifications relating to application forms for specified superannuation products

  

17.1  After subsection 1012B(4)

insert

          (4A)  A regulated person:

                     (a)  need not give a client a Product Disclosure Statement for a financial product at or before the time when it would otherwise be required to be given; and

                     (b)  must give the client the Product Disclosure Statement as soon as is reasonably practical and in any event within 3 months after the product is issued to the client; and

                     (c)  need not give the client the Product Disclosure Statement at all if the client ceases to be a member of the superannuation fund concerned before the regulated person is required to give the Product Disclosure Statement under paragraph (b).

          (4B)  Subsections (3), (4) and (4A) apply only in respect of:

                     (a)  in the case of an eligible rollover fund:

                              (i)  persons who become members of the fund by being issued with a superannuation interest under section 243 of the SIS Act; and

                             (ii)  persons who become members of the fund in circumstances mentioned in section 89 of the RSA Act; and

                     (b)  in the case of a public offer superannuation fund that is not a successor fund in relation to the financial product issued to the client:

                              (i)  standard employer‑sponsored members of the fund; and

                             (ii)  persons who become members of the fund in circumstances mentioned in regulation 7.9.06B of the Corporations Regulations 2001.

17.2  After subsection 1012I(2B)

insert

          (2C)  If a trustee of an EPSSS:

                     (a)  applies, in circumstances mentioned in regulation 7.9.06B of the Corporations Regulations 2001, on behalf of a person for the issue of an interest in a relevant superannuation entity; and

                     (b)  has not previously applied in those circumstances for the issue of an interest in that entity on behalf of any person;

the person (the issuer) who is to issue the interest to the person must, at or before the time when the interest is issued to the person, give the trustee a Product Disclosure Statement in accordance with this Division for the interest.

Part 18Modification of Part 7.9 of the Act—New Zealand offer documents replace Product Disclosure Statements where an offer relates to interests in a New Zealand managed investment scheme

  

18.1  After subsection 1012D(9D)

insert

Recommendation, issue or sale situation—New Zealand mutual recognition scheme for securities

          (9E)  In a recommendation situation, issue situation or sale situation, the regulated person does not have to give the client a Product Disclosure Statement for a financial product if:

                     (a)  the regulated person reasonably believes that there is a recognised offer under Chapter 8 in relation to offer of the financial product; and

                     (b)  the financial product is an interest in a managed investment scheme governed by the laws of New Zealand; and

                     (c)  the regulated person has provided the client the documents and information required to accompany that offer by the Financial Markets Conduct Act 2013 of New Zealand and the Financial Markets Conduct Regulations 2014 of New Zealand; and

                     (d)  the regulated person has provided the client any warning statement or details prescribed under section 1200E in relation to the offer.

           (9F)  For paragraph (9E)(c), section 1015C applies to the providing of documents and information, as if the documents and information were a Statement.

          (9G)  For paragraph (9E)(d), section 1015C applies to the providing of warning statement or details prescribed under section 1200E, as if the warning statement or details were a Statement.

Part 19Modifications for carbon units, Australian carbon credit units and eligible international emissions units

  

19.1  Subsections 1012D(1) to (3), including the subheadings

substitute

Recommendation, issue or sale situation for carbon unit—statements on Clean Energy Regulator’s website

             (1)  Subject to subsections (2) and (3), in a recommendation situation, issue situation or sale situation for a carbon unit, the regulated person:

                     (a)  does not have to give the client a Product Disclosure Statement; and

                     (b)  must inform the client that the client should consider each statement about the carbon unit that is mentioned in section 202 of the Clean Energy Act 2011.

Recommendation, issue or sale situation for carbon unit—client has considered statements on Clean Energy Regulator’s website

             (2)  In a recommendation situation, issue situation or sale situation for a carbon unit, the regulated person does not have to inform the client as described in paragraph (1)(b) if the regulated person believes, on reasonable grounds, that the client has already considered each statement about the carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011.

Recommendation, issue or sale situation for carbon unit—specified persons

             (3)  In a recommendation situation, issue situation or sale situation for a carbon unit, the regulated person does not have to inform the client as described in paragraph (1)(b) if the person is:

                     (a)  the Clean Energy Regulator; or

                     (b)  the Clean Development Mechanism Executive Board; or

                     (c)  the government of a country other than Australia; or

                     (d)  an authority acting on behalf of the government of a country other than Australia.

Recommendation, issue or sale situation for Australian carbon credit unit—statements on Clean Energy Regulator’s website

          (3A)  Subject to subsections (3B) and (3C), in a recommendation situation, issue situation or sale situation for an Australian carbon credit unit, the regulated person:

                     (a)  does not have to give the client a Product Disclosure Statement; and

                     (b)  must inform the client that the client should consider each statement about the Australian carbon credit unit that is mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011.

Recommendation, issue or sale situation for Australian carbon credit unit—client has considered statements on Clean Energy Regulator’s website

          (3B)  In a recommendation situation, issue situation or sale situation for an Australian carbon credit unit, the regulated person does not have to inform the client as described in paragraph (3A)(b) if the regulated person believes, on reasonable grounds, that the client has already considered each statement about the Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011.

Recommendation, issue or sale situation for Australian carbon credit unit—specified persons

          (3C)  In a recommendation situation, issue situation or sale situation for an Australian carbon credit unit, the regulated person does not have to inform the client as described in paragraph (3A)(b) if the person is:

                     (a)  the Clean Energy Regulator; or

                     (b)  the Clean Development Mechanism Executive Board; or

                     (c)  the government of a country other than Australia; or

                     (d)  an authority acting on behalf of the government of a country other than Australia.

Recommendation, issue or sale situation for eligible international emissions unit—statements on Clean Energy Regulator’s website

          (3D)  Subject to subsections (3E) and (3F), in a recommendation situation, issue situation or sale situation for an eligible international emissions unit, the regulated person:

                     (a)  does not have to give the client a Product Disclosure Statement; and

                     (b)  must inform the client that the client should consider each statement about the eligible international emissions unit that is mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011.

Recommendation, issue or sale situation for eligible international emissions unit—client has considered statements on Clean Energy Regulator’s website

          (3E)  In a recommendation situation, issue situation or sale situation for an eligible international emissions unit, the regulated person does not have to inform the client as described in paragraph (3D)(b) if the regulated person believes, on reasonable grounds, that the client has already considered each statement about the eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011.

Recommendation, issue or sale situation for eligible international emissions unit—specified persons

           (3F)  In a recommendation situation, issue situation or sale situation for an eligible international emissions unit, the regulated person does not have to inform the client as described in paragraph (3D)(b) if the person is:

                     (a)  the Clean Energy Regulator; or

                     (b)  the Clean Development Mechanism Executive Board; or

                     (c)  the government of a country other than Australia; or

                     (d)  an authority acting on behalf of the government of a country other than Australia.

19.2  Subsection 1012D(5)

omit

give the client a Product Disclosure Statement

insert

inform the client as described in paragraph (1)(b), (3A)(b) or (3D)(b)

19.3  Subsection 1012D(6)

omit

give the client a Product Disclosure Statement

insert

inform the client as described in paragraph (1)(b), (3A)(b) or (3D)(b)

19.4  Subsections 1012D(7) to (10), including the subheading

omit

19.5  Subsection 1012IA(1), definition of regulated acquisition

substitute

regulated acquisition means an acquisition of a financial product pursuant to an instruction by the client under a custodial arrangement, being an acquisition:

                     (a)  by way of issue by the issuer (the regulated person); or

                     (b)  pursuant to a sale by a person (the regulated person) in circumstances:

                              (i)  described in subsection 1012C (5) or (8); or

                             (ii)  to which subsection 1012B (3), 1012C (3) or 1012C (6) would apply if those subsections were applicable in relation to a carbon unit, an Australian carbon credit unit or an eligible international emissions unit.

19.6  Subsection 1012IA(2), subheading

substitute

Obligation on provider to inform client about statements on Clean Energy Regulator’s website

19.7  Subsection 1012IA(2)

omit

must give the client a Product Disclosure Statement for the product if a Product Disclosure Statement for the product would

insert

must inform the client that the client should consider each statement about the carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011, or each statement about the Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011, or each statement about the eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011, if the statement would

19.8  Subsection 1012IA(3), subheading

substitute

Determining whether client should be informed about statements on Clean Energy Regulator’s website for an equivalent direct acquisition

19.9  Subsection 1012IA(3)

omit

give the client a Product Disclosure Statement for the financial product

insert

inform the client that the client should consider each statement about the carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011, or each statement about the Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011, or each statement about the eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011

19.10  Paragraph 1017E(1)(b)

substitute

                     (b)  a seller (the product provider) of a carbon unit in relation to which the seller has informed the client that the client should consider each statement about the carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011; or

                   (ba)  a seller (the product provider) of an Australian carbon credit unit in relation to which the seller has informed the client that the client should consider each statement about the Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011; or

                   (bb)  a seller (the product provider) of an eligible international emissions unit in relation to which the seller has informed the client that the client should consider each statement about the eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011;

19.11  Subsection 1017G(1)

substitute

             (1)  This section does not apply to:

                     (a)  the Regulator; or

                     (b)  the CDM Executive Board; or

                     (c)  the government of a country other than Australia; or

                     (d)  an authority acting on behalf of the government of a country other than Australia.

          (1A)  If:

                     (a)  carbon units are, or have been, available for acquisition (whether by issue or sale) by a person or persons as retail clients; and

                     (b)  the issue or sale of the carbon units is not covered by an Australian financial services licence;

                   the issuer and any regulated person who is required, under subsection 1012D (1), to inform a client that the client should consider each statement about the carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011, must both have a dispute resolution system complying with subsection (2).

Note 1:       If the issue of the carbon units is covered by an Australian financial services licence, the requirement to have a dispute resolution system relating to the issue of the units is imposed by paragraph 912A(1)(g).

Note 2:       Failure to comply with this subsection is an offence (see subsection 1311(1)).

          (1B)  If:

                     (a)  Australian carbon credit units are, or have been, available for acquisition (whether by issue or sale) by a person or persons as retail clients; and

                     (b)  the issue or sale of the Australian carbon credit units is not covered by an Australian financial services licence;

                   the issuer and any regulated person who is required, under subsection 1012D(3A), to inform a client that the client should consider each statement about the Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011, must both have a dispute resolution system complying with subsection (2).

Note 1:       If the issue of the Australian carbon credit units is covered by an Australian financial services licence, the requirement to have a dispute resolution system relating to the issue of the units is imposed by paragraph 912A(1)(g).

Note 2:       Failure to comply with this subsection is an offence (see subsection 1311(1)).

          (1C)  If:

                     (a)  eligible international emissions units are, or have been, available for acquisition (whether by issue or sale) by a person or persons as retail clients; and

                     (b)  the issue or sale of the eligible international emissions units is not covered by an Australian financial services licence;

                   the issuer and any regulated person who is required, under subsection 1012D(3D), to inform a client that the client should consider each statement about the eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011, must both have a dispute resolution system complying with subsection (2).

Note 1:       If the issue of the eligible international emissions units is covered by an Australian financial services licence, the requirement to have a dispute resolution system relating to the issue of the units is imposed by paragraph 912A(1)(g).

Note 2:       Failure to comply with this subsection is an offence (see subsection 1311(1)).

19.12  Section 1018A, heading

substitute

1018A  Advertising or other promotional material for financial product must refer to statements on Clean Energy Regulator’s website

19.13  Subsection 1018A(1), subheading

substitute

Advertisements and promotional material must identify issuer (or issuer and seller) and refer to statements on Clean Energy Regulator’s website

19.14  Subsection 1018A(1)

omit

if a particular financial product is available for acquisition by persons as retail clients (whether or not it is also available for acquisition by persons as wholesale clients) by way of issue, or pursuant to sale offers to which section 1012C applies or will apply,

insert

in an issue situation or sale situation for a carbon unit, an Australian carbon credit unit or an eligible international emissions unit that is available for acquisition by persons as retail clients (whether or not it is also available for acquisition by persons as wholesale clients),

19.15  Subparagraph 1018A(1)(c)(ii)

omit

to which section 1012C applies or will apply

insert

to which paragraphs 1012C(3)(b) and (4)(c), and subsection 1012C(6), would apply if section 1012C were applicable in relation to a carbon unit, an Australian carbon credit unit or an eligible international emissions unit

19.16  Paragraphs 1018A(1)(d) and (e)

substitute

                     (d)  informs the person that the person should consider:

                              (i)  each statement about the carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011 in deciding whether to acquire, or to continue to hold, the carbon unit; or

                             (ii)  each statement about the Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 in deciding whether to acquire, or to continue to hold, the Australian carbon credit unit; or

                            (iii)  each statement about the eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011 in deciding whether to acquire, or to continue to hold, the eligible international emissions unit.

19.17  Subsection 1018A(2)

omit

if a particular financial product, or proposed financial product, is not available for acquisition by persons as retail clients but it is reasonably likely that the product will become so available (whether or not it is, or will also become, available for acquisition by persons as wholesale clients) by way of issue, or pursuant to sale offers to which section 1012C will apply,

insert

in an issue situation or sale situation for a financial product that is a carbon unit, an Australian carbon credit unit or an eligible international emissions unit and is not available for acquisition by persons as retail clients, but is reasonably likely to become so available (whether or not it is, or will also become, available for acquisition by persons as wholesale clients),

19.18  Subparagraph 1018A(2)(c)(ii)

omit

to which section 1012C will apply

insert

to which paragraphs 1012C(3)(b) and (4)(c), and subsection 1012C(6), would apply if section 1012C were applicable in relation to a carbon unit, an Australian carbon credit unit or an eligible international emissions unit

19.19  Paragraphs 1018A(2)(d) to (f)

substitute

                     (d)  informs the person that:

                              (i)  a statement about the carbon unit is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011; or

                             (ii)  a statement about the Australian carbon credit unit is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011; or

                            (iii)  a statement about the eligible international emissions unit is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011; and

                     (e)  informs the person that the person should consider each statement about the carbon unit, Australian carbon credit unit or eligible international emissions unit that is published on that website in deciding whether to acquire, or to continue to hold, the carbon unit, Australian carbon credit unit or eligible international emissions unit.

19.20  Subsection 1018A(3)

omit

distribute a Product Disclosure Statement

insert

inform a person that the person should consider each statement about the carbon unit, Australian carbon credit unit or eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011, section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011

19.21  Subparagraph 1018A(4)(c)(i)

substitute

                              (i)  does not contain information that materially affects affairs of the issuer, other than information about the carbon unit, Australian carbon credit unit or eligible international emissions unit that is published:

                                     (A)   on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011, section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011; or

                                      (B)   in a disclosure document that has been lodged with ASIC; or

                                      (C)   in an annual report or in a notice or report referred to in paragraph (a) or (b); and

19.22  Subparagraphs 1018A(4)(d)(i) and (ii)

substitute

                              (i)  information about the carbon unit, Australian carbon credit unit or eligible international emissions unit that is published:

                                     (A)   on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011, section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011; or

                                      (B)   in a disclosure document that has been lodged with ASIC; or

19.23  Paragraph 1020D(b)

substitute

                     (b)  if the acquisition occurs in circumstances in which the party is required by a provision of this Part to have been informed that the party should consider each statement about the carbon unit, Australian carbon credit unit or eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011, section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011—taken to have notice of any contract, document or matter not specifically referred to in those statements.

19.24  Paragraph 1020E(7)(b)

omit

the document, advertisement or statement

insert

the statement or advertisement

19.25  Section 1021C, heading

substitute

1021C  Offence of failing to refer to statements on Clean Energy Regulator’s website

19.26  Subparagraph 1021C(1)(a)(i)

substitute

                              (i)  is required by a provision of this Part to inform a person that the person should consider each statement about a carbon unit, an Australian carbon credit unit or an eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011, section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011 (the required statement); or

19.27  Subparagraph 1021C(1)(b)(i)

substitute

                              (i)  if subparagraph (a)(i) applies—inform the person that the person should consider each required statement; or

19.28  Subparagraph 1021C(3)(a)(i)

substitute

                              (i)  is required by a provision of this Part to inform a person that the person should consider each statement about a carbon unit, an Australian carbon credit unit or an eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011, section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011 (the required statement); or

19.29  Subparagraph 1021C(3)(b)(i)

substitute

                              (i)  if subparagraph (a)(i) applies—inform the person that the person should consider each required statement; or

19.30  Paragraph 1021C(4)(b)

substitute

                     (b)  the representative’s failure to inform the person that the person should consider each required statement occurred because the representative was acting in reliance on that information or those instructions; and

19.31  Section 1021G

omit

to give or communicate disclosure documents or statements as and when required by this Part.

insert

to inform a person that the person should consider each statement about a carbon unit, an Australian carbon credit unit or an eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011, section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions Units Act 2011 as and when required by this Part.

19.32  After paragraph 1022B(1)(ac)

insert

                   (ad)  a person:

                              (i)  is required to inform another person (the client) that the client should consider each statement about a carbon unit that is published on the website of the Clean Energy Regulator as mentioned in section 202 of the Clean Energy Act 2011; and

                             (ii)  does not inform the client by the time the person is required to do so; or

                    (ae)  a person:

                              (i)  is required to inform another person (the client) that the client should consider each statement about an Australian carbon credit unit that is published on the website of the Clean Energy Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011; and

                             (ii)  does not inform the client by the time the person is required to do so; or

                    (af)  a person:

                              (i)  is required to inform another person (the client) that the client should consider each statement about an eligible international emissions unit that is published on the website of the Clean Energy Regulator as mentioned in section 61 of the Australian National Registry of Emissions Units Act 2011; and

                             (ii)  does not inform the client by the time the person is required to do so; or

Schedule 10AAModifications of the Act in relation to their application in respect of a recognised offer or a proposed offer of securities that may become a recognised offer

(regulation 8.4.02)

Part 1Modification of Part 6D.2 of the Act—disclosure to investors not required for recognised offer under Chapter 8

  

1.1  After subsection 707(3)

insert

          (3A)  Subsection (3) does not apply to an offer of a body’s securities for sale if the body issued the securities as part of a recognised offer under Chapter 8.

          (3B)  Subsection (3) does not apply to an offer of a body’s securities for sale if:

                     (a)  the securities were issued by reason of the exercise of options or the conversion of convertible or converting securities; and

                     (b)  the options or other convertible or converting securities were issued as part of a recognised offer under Chapter 8; and

                     (c)  the exercise of the option, or the conversion of the security, did not involve any further offer.

1.2  After subsection 707(5)

insert

          (5A)  Subsection (5) does not apply to an offer of a body’s securities for sale if the controller sold the securities as part of a recognised offer under Chapter 8.

Part 2Modification of Part 7.9 of the Act—disclosure to investors not required for recognised offer under Chapter 8

  

2.1  After subsection 1012C(6)

insert

          (6A)  Subsection (6) does not apply to an offer of a financial product for sale if the issuer issued the financial product as part of a recognised offer under Chapter 8.

          (6B)  Subsection (6) does not apply to an offer of a financial product for sale if:

                     (a)  the financial product was issued by reason of the exercise of an option or the conversion of another convertible or converting security; and

                     (b)  the option or convertible or converting security was issued as part of a recognised offer under Chapter 8; and

                     (c)  the exercise of the option, or the conversion of the security, did not involve a further offer.

2.2  After subsection 1012C(8)

insert

          (8A)  Subsection (8) does not apply to the offer of a financial product for sale if the controller sold the financial product as part of a recognised offer under Chapter 8.

2.3  After subsection 1012IA(3)

insert

          (3A)  In determining whether this section requires a provider to give a client a Product Disclosure Statement, Chapter 8 is to be disregarded.

          (3B)  A provider is not required to give a client a Product Disclosure Statement for a financial product if:

                     (a)  the provider reasonably believes there is a recognised offer under Chapter 8 in relation to the financial product; and

                     (b)  the financial product is an interest in a managed investment scheme governed by the laws of New Zealand; and

                     (c)  the provider has provided the client the documents and information required to accompany that offer by the Financial Markets Conduct Act 2013 of New Zealand and the Financial Markets Conduct Regulations 2014 of New Zealand; and

                     (d)  the provider has provided the client any warning statement or details prescribed under section 1200E in relation to the offer.

          (3C)  For paragraph (3B)(c), section 1015C applies to the providing of documents and information, as if the documents and information were a Statement.

          (3D)  For paragraph (3B)(d), section 1015C applies to the providing of warning statement or details prescribed under section 1200E, as if the warning statement or details were a Statement.

Note:          Subsection 1012D(9E) of the Act is a modification of the Act that relates to Chapter 8 of the Act. The modification applies by force of:

(a)    regulation 8.4.01 of the Corporations Regulations 2001; and

(b)    item 18.1 of Part 18 of Schedule 10A to those Regulations.

Schedule 10BAModifications of the Act relating to Short‑Form Product Disclosure Statements

(regulation 7.9.61AA)

Part 1Modifications of Part 7.7 of the Act

  

1.1  Paragraph 949A(2)(c)

after

Part 7.9)

insert

or a Short‑Form PDS (see Division 3A of Part 7.9)

Part 2Modifications of Part 7.8 of the Act

  

2.1  Paragraphs 992A(3)(c), (d) and (e)

after

Statement

insert

or a Short‑Form PDS

Part 3Modifications of Part 7.9 of the Act

  

3.1  After Division 3 of Part 7.9

insert

Division 3A—Short‑Form Product Disclosure Statements

1017H  Short‑Form PDS

Short‑Form PDS may be given instead of a Product Disclosure Statement in most cases

             (1)  If a regulated person is required or obliged by this Act to give a Product Disclosure Statement for a financial product (but see subsection (4)) to another person, the regulated person may instead provide a Short‑Form PDS for the product.

Product Disclosure Statement must be given in certain circumstances

             (2)  However, if the regulated person is requested by the other person to provide the Product Disclosure Statement the regulated person must provide the Product Disclosure Statement.

Responsible person

             (3)  The responsible person for a Short‑Form PDS for a financial product is the person who is the responsible person for the Product Disclosure Statement for the product.

Application of subsection (1)

             (4)  Subsection (1) does not apply to a general insurance product.

1017I  Contents of a Short‑Form PDS

Contents

             (1)  The Short‑Form PDS for a financial product must contain the following:

                     (a)  a summary of the statements and information referred to in paragraphs 1013D(1)(a), (b), (c), (d), (e), (g) and (i) that were included in a Product Disclosure Statement for the product;

                     (b)  a statement:

                              (i)  notifying the retail client in relation to the product that the client may ask for the Product Disclosure Statement for the product; and

                             (ii)  setting out the means by which the client may ask for the Product Disclosure Statement.

Extra contents for certain products

             (2)  If the Short‑Form PDS is for a superannuation product or a managed investment product the Short‑Form PDS must also set out in full the information in:

                     (a)  any regulations made for the purposes of paragraph 1013D(4)(c) relating to the details of fees and costs; and

                     (b)  any regulations made for the purposes of paragraph 1015C(5)(b) that relate to the presentation, structure and format of information required by paragraphs 1013D(1)(d) and (e).

Other information may be included in Short‑Form PDS

             (3)  The Short‑Form PDS may also:

                     (a)  include other information; and

                     (b)  refer to other information that is set out in the Product Disclosure Statement or Financial Services Guide for the product.

Reference to identify incorporated information

             (4)  If under paragraph (3)(b) information is referred to in the Short‑Form PDS, the reference must identify the document or the part of the document that contains the information.

Incorporated document forms part of Short‑Form PDS

             (5)  The document or part referred to in subsection (4) is taken to be included in the Short‑Form PDS.

Rule as to statements in a Short‑Form PDS

             (6)  If a Product Disclosure Statement for a financial product may include a statement made by a person (see section 1013K), the statement may also be included in the Short‑Form PDS for the product.

1017J  Title of Short‑Form Product Disclosure Statement

             (1)  The title “Short‑Form Product Disclosure Statement” must be used on the cover of, or at or near the front of, a Short‑Form PDS.

             (2)  In any other part of a Short‑Form PDS, “Short‑Form Product Disclosure Statement” may be abbreviated to “Short‑Form PDS”.

1017K  References in sections to Product Disclosure Statement to include references to Short‑Form PDS

                   The following provisions apply to a Short‑Form PDS and so apply as if a reference to a Product Disclosure Statement in the provisions included a reference to a Short‑Form PDS:

                     (a)  sections 942DA, 947E, 1012F, 1012G, 1012H, 1012J, 1013A, 1013G, 1013H, 1013I, 1013L 1013M, 1016A, 1016B, 1016C, 1016D, 1016E and 1017A and subsections 1013C(3) and 1013C(4) to (7);

                     (b)  any regulations made under those sections or subsections;

                     (c)  any regulations that modify those sections or subsections.

Division 3B—Supplementary Short‑Form Product Disclosure Statements

1017L  What a Supplementary Short‑Form Product Disclosure Statement is

                   A Supplementary Short‑Form PDS is a document by which a person who has prepared a Short‑Form PDS can:

                     (a)  correct a misleading or deceptive statement in the Short‑Form PDS; or

                     (b)  correct an omission from the Short‑Form PDS of information it is required to contain; or

                     (c)  update, or add to, the information contained in the Short‑Form PDS; or

                     (d)  change a statement of a kind referred to in paragraph 1016E(1)(a) or (b) (as applied by section 1017K).

1017M  Title of Supplementary Short‑Form Product Disclosure Statement

             (1)  The title “Supplementary Short‑Form Product Disclosure Statement” must be used on the cover of, or at or near the front of, a Supplementary Short‑Form PDS.

             (2)  In any other part of a Supplementary Short‑Form PDS, “Supplementary Short‑Form Product Disclosure Statement” may be abbreviated to “Supplementary Short‑Form PDS”.

1017N  Form of Supplementary Short‑Form Product Disclosure Statement

                   At the beginning of a Supplementary Short‑Form PDS there must be:

                     (a)  a statement that it is a Supplementary Short‑Form PDS; and

                     (b)  an identification of the Short‑Form PDS that it supplements; and

                     (c)  a statement that it is to be read together with that Short‑Form PDS and any other specified Supplementary Short‑Form PDS.

1017O  Effect of giving person a Supplementary Short‑Form Product Disclosure Statement

                   If:

                     (a)  a person is given a Short‑Form PDS; and

                     (b)  at the same time, or later, they are given a Supplementary Short‑Form PDS that supplements the Short‑Form PDS;

the Short‑Form PDS is taken, from when the Supplementary Short‑Form PDS is given to the person, to include the information and statements contained in the Supplementary Short‑Form PDS.

1017P  Situation in which only a Supplementary Short‑Form Product Disclosure Statement need be given

                   If:

                     (a)  apart from this section, a person would be required to give another person (the client) a Product Disclosure Statement (the new PDS) relating to a financial product; and

                     (b)  the client has, because of some previous conduct, already received a Short‑Form PDS (the earlier Short‑Form PDS) relating to the financial product; and

                     (c)  the earlier Short‑Form PDS contains summaries of some, but not all, of the information that the new PDS is required to contain (see paragraph 1017I(1)(a));

the person may, instead of giving the client the new PDS, give the client a Supplementary Short‑Form PDS that contains summaries of the additional information.

1017Q  Application of other provisions in relation to Supplementary Short‑Form Product Disclosure Statements

                   The following provisions apply in relation to a Supplementary Short‑Form PDS in the same way as those provisions apply to a Product Disclosure Statement:

                     (a)  sections 1013A, 1013G, 1013H, 1013K and subsections 1013C(3) and 1013C(4) to (7);

                     (b)  any regulations made under those sections or subsections;

                     (c)  any regulations that modify those sections or subsections.

3.2  Section 1015A

substitute

1015A  Subdivision applies to certain Disclosure Statements

             (1)  Subject to subsection (2):

                     (a)  this Subdivision applies to:

                              (i)  a Product Disclosure Statement; or

                             (ii)  a Short‑Form PDS; or

                            (iii)  a Supplementary PDS; or

                            (iv)  a Supplementary Short‑Form PDS; and

                     (b)  each of those kinds of documents is referred to in this Subdivision as a Statement.

             (2)  However:

                     (a)  section 1015B does not apply to a Short‑Form PDS or a Supplementary Short‑Form PDS; and

                     (b)  in that section, Statement does not include a Short‑Form PDS or a Supplementary Short‑Form PDS.

3.3  Subsection 1015B(1) (after the note)

insert

Note 2:       Subsection 1015A(2) provides that Statement in this section does not include a Short‑Form PDS or a Supplementary Short‑Form PDS.

3.4  Paragraph 1018A(1)(e)

after

Statement

insert

or Short‑Form PDS, if available,

3.5  Paragraph 1018A(2)(f)

after

Statement

insert

or Short‑Form PDS, if available,

3.6  Subsection 1018A(3)

after

Statement

insert

or Short‑Form PDS

3.7  Subparagraph 1018A(4)(d)(i)

after

Statement

insert

or Short‑Form PDS

3.8  Paragraph 1020D(b)

omit

or Supplementary Product Disclosure Statement

insert

, Supplementary Product Disclosure Statement, Short‑Form PDS or Supplementary Short‑Form PDS

3.9  After paragraph 1021B(1)(b) (definition of defective)

insert

                   (ba)  if it is a Short‑Form PDS—there is an omission from the Short‑Form PDS of material required by section 1017I; or

3.10  After paragraph 1021B(1)(c) (definition of defective)

insert

                    (ca)  if it is a Supplementary Short‑Form PDS that is given for the purposes of section 1017P—there is an omission from the Short‑Form PDS of material required by that section; or

3.11  Subsection 1021B(1), definition of disclosure document or statement, after paragraph (b)

insert

                   (ba)  a Short‑Form PDS; or

                   (bb)  a Supplementary Short‑Form PDS; or

3.12  After subsection 1021C(5)

insert

             (6)  If a person does not give a Product Disclosure Statement for a financial product because the person has given a Short‑Form PDS for the product, the person is taken not to contravene this section.

3.13  Paragraph 1021H(1)(a)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short‑Form PDS or a Supplementary Short‑Form PDS

3.14  Subparagraph 1021H(1)(b)(i)

after

Product Disclosure Statement

insert

or Short‑Form PDS

3.15  Subparagraph 1021H(1)(b)(ii)

omit

; and

insert

; or

3.16  After subparagraph 1021H(1)(b)(ii)

insert

                            (iii)  if it is a Supplementary Short‑Form PDS—section 1013G, 1017M or 1017N; and

3.17  After subparagraph 1021J(1)(c)(ii)

insert

                           (iia)  if it is a Short‑Form PDS—a direction not to distribute the Short‑Form PDS unless it is accompanied by a Supplementary Short‑Form PDS that corrects the deficiency;

3.18  After subparagraph 1021J(1)(c)(iii)

insert

                          (iiia)  if it is a Short‑Form PDS or a Supplementary Short‑Form PDS—a direction not to distribute the Short‑Form PDS or Supplementary Short‑Form PDS without first altering it in a way that is specified in the direction, being a way that corrects the deficiency and that complies with section 1015E.

3.19  Paragraph 1021K(1)(a)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short‑Form PDS or a Supplementary Short‑Form PDS (the disclosure statement)

3.20  Paragraph 1021K(1)(b)

omit

Product Disclosure Statement or Supplementary Product Disclosure Statement

insert

disclosure statement

3.21  Subparagraphs 1021K(1)(d)(i), (ii) and (iii)

omit

Product Disclosure Statement or Supplementary Product Disclosure Statement

insert

disclosure statement

3.22  Paragraph 1021L(1)(a)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short‑Form PDS or a Supplementary Short‑Form PDS

3.23  Paragraph 1021L(2)(a)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short‑Form PDS or a Supplementary Short‑Form PDS (the disclosure statement)

3.24  Subparagraph 1021L(2)(b)(iv)

omit

Product Disclosure Statement or Supplementary Product Disclosure Statement

insert

disclosure statement

3.25  Subparagraphs 1021M(1)(a)(i), (ii), (iii) and (iv)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short‑Form PDS or a Supplementary Short‑Form PDS

3.26  Subparagraphs 1021M(3)(a)(i), (ii), (iii) and (iv)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short‑Form PDS or a Supplementary Short‑Form PDS

3.27  After paragraph 1022A(1)(b) (definition of defective)

insert

                   (ba)  if it is a Short‑Form PDS—there is an omission from the Short‑Form PDS of material required by section 1017I; or

3.28  After paragraph 1022A(1)(c) (definition of defective)

insert

                    (ca)  if it is a Supplementary Short‑Form PDS that is given for the purposes of section 1017P—there is an omission from the Short‑Form PDS of material required by that section; or

3.29  Subsection 1022A(1), definition of disclosure document or statement, after paragraph (b)

insert

                   (ba)  a Short‑Form PDS; or

                   (bb)  a Supplementary Short‑Form PDS; or

3.30  Subparagraph 1022B(1)(a)(i)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short‑Form PDS or a Supplementary Short‑Form PDS

3.31  Subparagraph 1022B(1)(c)(ii)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short‑Form PDS or a Supplementary Short‑Form PDS

3.32  Subparagraph 1022B(1)(d)(i)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short‑Form PDS or a Supplementary Short‑Form PDS


Schedule 10CForm and content of Product Disclosure Statement—margin loan

(regulation 7.9.11D)

  

1  Length and font size for Product Disclosure Statement for margin loan

             (1)  The length of a Product Disclosure Statement for a margin loan (not including any title page, table of contents or matter in writing that is applied, adopted or incorporated by the Statement) must not exceed:

                     (a)  if it is printed on A4 pages—4 pages; or

                     (b)  if it is printed on A5 pages—8 pages; or

                     (c)  if it is printed on DL pages—12 pages; or

                     (d)  otherwise—if it is formatted to be printed on A4 pages, 4 A4 pages.

             (2)  The minimum font size for text in the Statement is:

                     (a)  for the name, address, ABN (if applicable), ACN (if applicable) and AFSL (if applicable) of the person giving the Statement—8 points; and

                     (b)  for all other text—9 points.

Note 1:       The Product Disclosure Statement must be worded and presented in a clear, concise and effective manner—see subsection 1013C(3) of the Act.

Note 2:       A person required to a give a Product Disclosure Statement to a vision‑impaired person must comply with its obligations under the Disability Discrimination Act 1992.

2  Minimum content of Product Disclosure Statement for margin loan

             (1)  The Product Disclosure Statement must include the following sections, which must be numbered and titled as follows:

                       1.  About [name of provider of the margin loan] and [name of margin loan product]

                       2.  Benefits of [name of margin loan product]

                       3.  How [name of margin loan product] works

                       4.  What is a margin call?

                       5.  The risk of losing money

                       6.  The costs

                       7.  How to apply.

             (2)  The Product Disclosure Statement must include:

                     (a)  a table of contents that sets out the titles mentioned in subclause (1); and

                     (b)  the telephone number of the provider of the margin loan to enable a borrower for the margin loan to request a copy of the following under regulation 7.9.11G:

                              (i)  a copy of the Statement; and

                             (ii)  a copy of a matter in writing that is applied, adopted or incorporated by the Statement.

             (3)  The Product Disclosure Statement must:

                     (a)  advise a person reading the Statement that:

                              (i)  it is a summary of significant information and contains a number of references to important information (each of which forms part of the Statement); and

                             (ii)  the person should consider that information before making a decision about the product; and

                            (iii)  the information provided in the Statement is general information only and does not take account of the person’s personal financial situation or needs; and

                            (iv)  the person should obtain financial advice tailored to the person’s personal circumstances; and

                     (b)  display the advice:

                              (i)  at or near the beginning of the document; and

                             (ii)  in a prominent position and style.

             (4)  The Product Disclosure Statement:

                     (a)  may include additional sections after sections 1 to 7; and

                     (b)  may include other information;

to an extent that does not have the effect of contravening subclause 1(1).

             (5)  The Product Disclosure Statement does not need to indicate that a particular requirement is not applicable to the margin loan.

Note:          The Act, as modified in accordance with Subdivision 4.2A of Division 4 of Part 7.9, requires information to be included in the Product Disclosure Statement only to the extent to which the requirement is applicable to the margin loan.

3  Contents of section 1 (About [name of provider of the margin loan] and [name of margin loan product])

                   Section 1 of the Product Disclosure Statement must include:

                     (a)  a short description of the margin loan provider and its business; and

                     (b)  a short summary of what margin lending is; and

                     (c)  a statement setting out the possible consequences of borrowing money to invest, including the effect of magnifying both gains and losses; and

                     (d)  a statement that the borrower for a margin loan should regularly monitor the borrower’s portfolio so that:

                              (i)  the borrower can be aware of changes (if any) to the terms of the margin loan; and

                             (ii)  the borrower can take timely action to prevent potential losses in relation to the borrower’s portfolio; and

                     (e)  a statement that the borrower for a margin loan may need, at short notice, to pay an additional amount into the margin loan or sell some of the investments for which the margin loan is made; and

                      (f)  a statement that the provider of a margin loan has the right in certain circumstances to sell all, or part, of the borrower’s portfolio and may not be required under the terms of the margin loan to provide notice to the borrower of its intention to sell; and

                     (g)  a statement that if the value of the portfolio for a margin loan does not cover the cost of repayments for the margin loan:

                              (i)  the borrower for the margin loan may need to access other funds to repay the margin loan; or

                             (ii)  the provider of the margin loan may sell assets provided as security for the margin loan, for example, the borrower’s residential property; and

                     (h)  a statement that the law requires the provider of a margin loan to:

                              (i)  assess whether the margin loan is unsuitable for the potential borrower for the margin loan; and

                             (ii)  if the potential borrower for the margin loan requests a copy of the assessment—to provide a copy of the assessment to the potential borrower for the margin loan.

Note:          The provider of a margin loan is not required to give the borrower or potential borrower for the margin loan a copy of the assessment if the margin loan is not issued.

4  Contents of section 2 (Benefits of [name of margin loan product])

             (1)  Section 2 of the Product Disclosure Statement for a margin loan must include a description of the key benefits available to the borrower or potential borrower for the margin loan.

             (2)  Section 2 of the Statement may include a description about other benefits available to a borrower or potential borrower for the margin loan other than the benefits mentioned in subclause (1).

             (3)  Section 2 of the Statement may provide for the description mentioned in subclause (2) by applying, adopting or incorporating a matter in writing.

5  Contents of section 3 (How [name of margin loan product] works)

             (1)  Section 3 of the Product Disclosure Statement for a margin loan must include:

                     (a)  an explanation of how margin lending works including information about the following:

                              (i)  the maximum loan amount for the margin loan;

                             (ii)  the loan‑to‑value ratios for the margin loan; and

                     (b)  at least 1 example that illustrates the matters mentioned in subparagraphs (a)(i) and (ii); and

                     (c)  a description of the financial products that the borrower or potential borrower for the margin loan can purchase with the margin loan (including the Approved Securities List for the provider or potential provider of the margin loan); and

                     (d)  an explanation of who owns the investments purchased with the margin loan; and

                     (e)  a statement that:

                              (i)  details of the rights and obligations of the borrower for a margin loan are set out in the terms of the agreement for the margin loan; and

                             (ii)  recommends that a potential borrower for a margin loan read the loan agreement; and

                            (iii)  explains how a potential borrower can obtain a copy of the loan agreement; and

                      (f)  an explanation of any other features of the margin loan that:

                              (i)  are not covered by the matters mentioned in paragraphs (a), (c) and (d); and

                             (ii)  are sufficiently important to be material to a reasonable person’s decision to take out the margin loan; and

                     (g)  a reference to:

                              (i)  the calculator provided on a website operated by or on behalf of the Commonwealth and an explanation of the assistance the calculator can provide; or

                             (ii)  if the provider or potential provider of the margin loan provides a calculator to borrowers or potential borrowers for the margin loan—that calculator and an explanation of the assistance the calculator can provide.

             (2)  Section 3 of the Statement may provide for the following matters by applying, adopting or incorporating the matter in writing:

                     (a)  the Approved Securities List;

                     (b)  the explanation mentioned in paragraph (1)(f).

6  Contents of section 4 (What is a margin call?)

                   Section 4 of the Product Disclosure Statement for a margin loan must include:

                     (a)  if the terms of the margin loan include a margin call:

                              (i)  an explanation of what a margin call is; and

                             (ii)  an explanation of when there will be a margin call in response to changes in the market; and

                            (iii)  an explanation of when there will be a margin call at the discretion of the provider of the margin loan; and

                            (iv)  at least 1 example of how a margin call works, including:

                                        (A)  the impact of breaching the loan‑to‑value ratio (LVR) for the margin loan; and

                                        (B)  how to adjust the LVR back to the required level for the margin loan; and

                                        (C)  how the buffer (if any) for the margin loan operates; and

                             (v)  a description of how a margin call can be dealt with by the borrower for the margin loan; and

                            (vi)  a statement that if there is a margin call, the provider of the margin loan will notify the borrower for the margin loan, or the borrower’s financial advisor, that the margin call has occurred; and

                           (vii)  a statement that the borrower for the margin loan must be contactable at all times in case of a margin call; and

                     (b)  if the terms of the margin loan do not include a margin call, a statement to that effect.

7  Contents of section 5 (The risk of losing money)

             (1)  Section 5 of the Product Disclosure Statement for a margin loan must include a description of the risks associated with margin lending to a borrower for the margin loan, including a description of any of the following risks, if relevant:

                     (a)  the risk that the value of the borrower’s investment may fall and the possible consequences to the borrower if this occurs, in particular the risk of a margin call occurring;

                     (b)  the risk that the provider of the margin loan may change the loan‑to‑value ratio of an investment at any time and the consequences to the borrower of the change, in particular, the risk of a margin call occurring;

                     (c)  the risk that the provider of the margin loan may remove an investment from the Approved Securities List and the consequences for the borrower if this occurs, in particular, the risk of a margin call occurring;

                     (d)  the risk that the interest rate for the margin loan may rise and the consequences for the borrower if this occurs, in particular, the possibility that interest payments owed by the borrower may exceed the returns available from the borrower’s portfolio;

                     (e)  the risk of the loss of property of the borrower if the property has been mortgaged as security for, or in connection with, the margin loan;

                      (f)  the risk of a default event under the loan agreement occurring and the potential consequences for the borrower if a default event does occur;

                     (g)  the risk that the taxation laws may change and that this may have a negative effect on the tax position for the borrower for the margin loan;

                     (h)  any other significant risks that a reasonable person would consider to be relevantly associated with the margin loan.

             (2)  Section 5 of the Statement must include a hyperlink to the page on a website operated by or on behalf of the Commonwealth that provides information about margin loans.

             (3)  Section 5 of the Statement may include information about risks associated with margin lending other than the risks mentioned in subclause (1).

             (4)  Section 5 of the Statement may provide for the information mentioned in subclause (3) by applying, adopting or incorporating a matter in writing.

8  Contents of section 6 (The costs)

             (1)  Section 6 of the Product Disclosure Statement for a margin loan must include the following:

                     (a)  a description of the interest rate for the margin loan, including how the interest rate is calculated;

                     (b)  a statement about whether a default interest rate will be charged for the margin loan;

                     (c)  details of any fee or cost to be charged by the provider of the margin loan, unless the fee is a minor fee;

                     (d)  a statement about whether a fee or cost to be charged by the provider for the loan can be unilaterally changed by the provider under the loan agreement;

                     (e)  a list of matters for which the provider of the margin loan will charge a minor fee for the margin loan;

                      (f)  a statement about whether a commission or fee is payable to a financial advisor or other third party for the margin loan and, if a commission or fee is payable:

                              (i)  the circumstances in which the commission or fee will be payable; and

                             (ii)  how the borrower for the margin loan can obtain more detailed information about the commission or fee.

             (2)  Section 6 of the Statement must include:

                     (a)  a statement of the interest rate for the margin loan; and

                     (b)  details of any minor fee the provider of the margin loan will charge for the margin loan.

             (3)  Section 6 of the Statement may provide for the statement mentioned in paragraph (2)(a) or the details mentioned in paragraph (2)(b) by applying, adopting or incorporating a matter in writing

9  Contents of section 7 (How to apply)

             (1)  Section 7 of the Product Disclosure Statement for a margin loan must include:

                     (a)  information about how to apply for the margin loan; and

                     (b)  a short summary about the dispute resolution system the provider of the margin loan has for dealing with disputes or complaints about the loan, including:

                              (i)  how a borrower for the loan may make a complaint about the loan; and

                             (ii)  contact details for making a complaint about the loan.

             (2)  The margin loan provider:

                     (a)  may provide more detailed information about cooling‑off periods, complaints and dispute resolution; and

                     (b)  may provide that information by applying, adopting or incorporating a matter in writing.

Schedule 10DForm and content of Product Disclosure Statement—superannuation product to which Subdivision 4.2B of Division 4 of Part 7.9 applies

(regulation 7.9.11O)

  

1  Length and font size for Product Disclosure Statement for superannuation product

             (1)  The length of a Product Disclosure Statement for a superannuation product to which Subdivision 4.2B of Division 4 of Part 7.9 applies (not including any matter in writing that is applied, adopted or incorporated by the Statement) must not exceed:

                     (a)  if it is printed on A4 pages—8 pages; or

                     (b)  if it is printed on A5 pages—16 pages; or

                     (c)  if it is printed on DL pages—24 pages; or

                     (d)  otherwise—if it is formatted to be printed on A4 pages, 8 A4 pages.

             (2)  The minimum font size for text in the Statement is:

                     (a)  for the name, address, ABN (if applicable), ACN (if applicable) and AFSL (if applicable) of the person giving the Statement—8 points; and

                     (b)  for all other text—9 points.

Note 1:       The Product Disclosure Statement must be worded and presented in a clear, concise and effective manner—see subsection 1013C (3) of the Act.

Note 2:       A person required to a give a Product Disclosure Statement to a vision‑impaired person must comply with its obligations under the Disability Discrimination Act 1992.

2  Minimum content of Product Disclosure Statement for superannuation product

             (1)  Subject to subclause 10(1), the Product Disclosure Statement must include sections which must be numbered and titled as follows:

                       1.  About [name of superannuation product]

                       2.  How super works

                       3.  Benefits of investing with [name of superannuation product]

                       4.  Risks of super

                       5.  How we invest your money

                       6.  Fees and costs

                       7.  How super is taxed

                       8.  Insurance in your super

                       9.  How to open an account.

             (2)  However, if the superannuation product does not offer insurance cover:

                     (a)  section 9 may be presented as section 8; and

                     (b)  if section 9 is presented as section 8—a reference in clause 11 to section 9 is taken to be a reference to section 8.

             (3)  The Product Disclosure Statement must include:

                     (a)  a table of contents that sets out the titles mentioned in subclause (1); and

                     (b)  the telephone number of the superannuation trustee to enable a person who acquires the superannuation product to request a copy of the following under regulation 7.9.11R:

                              (i)  a copy of the Statement; and

                             (ii)  a copy of a matter in writing that is applied, adopted or incorporated by the Statement.

             (4)  The Product Disclosure Statement must:

                     (a)  advise a person reading the Statement that:

                              (i)  it is a summary of significant information and contains a number of references to important information (each of which forms part of the Statement); and

                             (ii)  the person should consider that information before making a decision about the product; and

                            (iii)  the information provided in the Statement is general information only and does not take account of the person’s personal financial situation or needs; and

                            (iv)  the person should obtain financial advice tailored to the person’s personal circumstances; and

                     (b)  display the advice:

                              (i)  at or near the beginning of the document; and

                             (ii)  in a prominent position and style.

             (5)  The Product Disclosure Statement:

                     (a)  may include additional sections after sections 1 to 9; and

                     (b)  may include other information;

to an extent that does not have the effect of contravening subclause 1(1).

             (6)  The Product Disclosure Statement does not need to indicate that a particular requirement is not applicable to the superannuation product.

Note:          The Act, as modified in accordance with Subdivision 4.2B of Division 4 of Part 7.9, requires information to be included in the Product Disclosure Statement only to the extent to which the requirement is applicable to the superannuation product.

3  Contents of section 1 (About [name of superannuation product])

             (1)  Section 1 of the Product Disclosure Statement must:

                     (a)  describe, in the form of a summary, the superannuation entity and the MySuper products and other investment options offered by the entity; and

                     (b)  include a statement of where, on the entity’s website, the member can find:

                              (i)  the product dashboard for each MySuper product and choice product in the entity; and

                             (ii)  each trustee and executive remuneration disclosure for the entity, and any other document that must be disclosed for the entity under the SIS Regulations; and

                     (c)  a statement describing the entity’s process for transitioning each member whose interest includes an accrued default amount from an existing default option to a MySuper product by 1 July 2017.

             (2)  Paragraph (1)(c) applies until the earlier of:

                     (a)  1 July 2017; and

                     (b)  the day on which the entity has attributed each accrued default amount in the entity to a MySuper product.

Note:          Putting the information mentioned in paragraph (1)(b) onto the superannuation fund’s website does not amount to adding the information to the Product Disclosure Statement.

4  Contents of section 2 (How super works)

             (1)  Section 2 of the Product Disclosure Statement must include statements to the effect that:

                     (a)  superannuation is a means of saving for retirement which is, in part, compulsory; and

                     (b)  there are different types of contributions available to a person (for example, employer contributions, voluntary contributions, government co‑contributions); and

                     (c)  there are limitations on contributions to, and withdrawals from, superannuation; and

                     (d)  tax savings are provided by the Government; and

                     (e)  most people have the right to choose into which superannuation entity the employer should direct their superannuation guarantee contributions.

             (2)  The superannuation trustee may provide more detailed information on the matters set out in subclause (1) by:

                     (a)  applying, adopting or incorporating a matter in writing; or

                     (b)  providing a reference to a website, operated by or on behalf of the Commonwealth, that contains the information.

5  Contents of section 3 (Benefits of investing with [name of superannuation product])

             (1)  Section 3 of the Product Disclosure Statement must describe the superannuation product covered by the Statement, including a summary of its significant features and the benefits it provides.

             (2)  The superannuation trustee may provide additional information about significant benefits of superannuation or other significant features of the superannuation product by applying, adopting or incorporating a matter in writing.

6  Contents of section 4 (Risks of super)

             (1)  Section 4 of the Product Disclosure Statement must include statements to the following effect:

                     (a)  all investments carry risk;

                     (b)  different strategies may carry different levels of risk, depending on the assets that make up the strategy;

                     (c)  assets with the highest long‑term returns may also carry the highest level of short‑term risk.

             (2)  Section 4 must describe, in the form of a summary, the significant risks of the particular superannuation product.

             (3)  Section 4 must describe the significant risks of superannuation (to the extent only that the description required by subitem (2) has not already described the risk) by including statements to the following effect:

                     (a)  the value of investments will vary;

                     (b)  the level of returns will vary, and future returns may differ from past returns;

                     (c)  returns are not guaranteed, and persons may lose some of their money;

                     (d)  superannuation laws may change in the future;

                     (e)  the amount of a person’s future superannuation savings (including contributions and returns) may not be enough to provide adequately for the person’s retirement;

                      (f)  the level of risk for each person will vary depending on a range of factors, including:

                              (i)  age; and

                             (ii)  investment time frames; and

                            (iii)  where other parts of the person’s wealth are invested; and

                            (iv)  the person’s risk tolerance.

             (4)  The superannuation trustee may provide additional information about significant risks of superannuation by applying, adopting or incorporating a matter in writing.

7  Contents of section 5 (How we invest your money)

             (1)  Section 5 of the Product Disclosure Statement must describe, in the form of a summary:

                     (a)  the MySuper products and investment options being offered; and

                     (b)  what happens if the person does not make a choice of where to invest.

             (2)  Section 5 must state, in the form of a warning, that the person must consider:

                     (a)  the likely investment return; and

                     (b)  the risk; and

                     (c)  the person’s investment timeframe;

when choosing a MySuper product or an investment option in which to invest.

             (3)  For at least one MySuper product or investment option, section 5 must:

                     (a)  state the name of the MySuper product or investment option and give a short description of it, including the type of investors for whom it is intended to be suitable; and

                     (b)  list the asset classes in which the MySuper product or investment option invests, and set out, in the form of a range or otherwise, the strategic asset allocation of the asset classes; and

                     (c)  describe the investment return objective of the MySuper product or investment option; and

                     (d)  state the minimum suggested time frame for holding the MySuper product or investment option; and

                     (e)  describe, in the form of a summary, the risk level of the MySuper product or investment option.

             (4)  If the superannuation product includes a generic MySuper product, section 5 must give the information mentioned in subclause (3) for the generic MySuper product, whether or not section 5 gives that information for another MySuper product or investment option.

             (5)  If the superannuation product does not include a generic MySuper product, and has a balanced investment option (within the meaning given by clause 101 of Schedule 10), section 5 must give the information mentioned in subclause (3) for the balanced investment option under which most assets of the superannuation entity are invested, whether or not section 5 gives that information for any MySuper product or other investment option.

             (6)  If the superannuation product does not include a generic MySuper product or a balanced investment option (within the meaning given by clause 101 of Schedule 10), section 5 must give the information mentioned in subclause (3) for the investment option under which most assets of the superannuation entity are invested, whether or not section 5 gives that information for any MySuper product or other investment option.

             (8)  Section 5:

                     (a)  must make provision for each MySuper product and investment option which is not presented in section 5 in accordance with subclause (3), (4), (5) or (6); and

                     (b)  may make provision for the MySuper product or investment option by applying, adopting or incorporating matter in a document that:

                              (i)  includes the information mentioned in subclause (3); and

                             (ii)  presents it in the way mentioned in the subclause.

             (9)  The superannuation trustee:

                     (a)  must provide information about how a person may switch the person’s investments; and

                     (b)  whether the superannuation product’s MySuper products and investment options may be changed and, if so, how; and

                     (c)  must describe, in the form of a summary, the extent to which labour standards or environmental, social or ethical considerations are taken into account in the selection, retention or realisation of investments relating to the superannuation product; and

                     (d)  may provide the information in paragraphs (a) to (c), and any additional information about MySuper products or investment options, by applying, adopting or incorporating a matter in writing.

8  Contents of section 6 (Fees and costs)

             (1)  For each MySuper product or investment option within a superannuation product that is presented in section 5 in detail in accordance with subclause 7(3), section 6 of the Product Disclosure Statement must state:

                     (a)  the cost of acquiring the MySuper product or investment option; and

                     (b)  the fees and costs that are charged in relation to the MySuper product or investment option.

Note:          The statement will be made using the template set out in subclause (3).

             (2)  Before setting out any other substantive material, section 6 must:

                     (a)  set out the Consumer Advisory Warning in clause 221 of Schedule 10; and

                     (b)  give a concise example in the form set out in the Consumer Advisory Warning in clause 221 of Schedule 10.

             (3)  Section 6 must set out the fees and costs for each MySuper product or other investment option that is presented in section 5 in detail in accordance with subclause 7(3), using the following templates:

 

[Name of superannuation product]

Type of fee

Amount

How and when paid

Investment fee

 

 

Administration fee

 

 

Buy‑sell spread

 

 

Switching fee

 

 

Exit fee

 

 

Advice fees

relating to all members investing in a particular MySuper product or investment option

 

 

Other fees and costs¹

 

 

Indirect cost ratio

 

 

1.             [If there are other fees and costs, such as activity fees, advice fees for personal advice or insurance fees, include a cross‑reference to the “Additional Explanation of Fees and Costs”.]

             (4)  The template is to be completed in accordance with Division 3 of Schedule 10 (including definitions applicable to that Division), except that:

                     (a)  clauses 203, 205, 206 and 207 and subclause 208(2) do not apply; and

                     (b)  the reference in clause 204 to clause 205 and clause 206 does not apply; and

                     (c)  the example in subclause 208(1) is to be treated as stating:

                            “(for example, by using an asterisk with a footnote stating ‘The amount of this fee can be negotiated’)”.

             (5)  Section 6 must set out the information about fee changes set out in paragraph 209(k) of Schedule 10.

             (6)  Section 6 must:

                     (a)  state that the information in the template can be used to compare costs between different superannuation products; and

                     (b)  state concisely, and in general terms, that fees and costs can be paid directly from the person’s account or deducted from investment returns.

          (6A)  Section 6 must:

                     (a)  apply, adopt or incorporate the definitions in relation to fees mentioned in section 29V of the SIS Act; and

                     (b)  include the address of a link to the definitions maintained on a website.

             (7)  Section 6 must give a worked example for each MySuper product or investment option described in section 5.

          (7A)  The example given must be in accordance with Divisions 5 and 6 of Schedule 10 (including the definitions applicable to those Divisions).

             (8)  Section 6:

                     (a)  must refer to the calculator provided by ASIC on its FIDO website or a similar website operated by or on behalf of ASIC; and

                     (b)  may also refer to the calculator (if any) provided by the superannuation trustee on its website; and

                     (c)  must state that each calculator referred to can be used to calculate the effect of fees and costs on account balances.

             (9)  If additional fees may be payable to a financial advisor, section 6 must:

                     (a)  state, in the form of a warning, that additional fees may be paid to a financial advisor if a financial advisor is consulted; and

                     (b)  refer to the Statement of Advice in which details of the fees are set out; and

                     (c)  if applicable:

                              (i)  state that fees may be paid to the employer entity’s financial adviser; and

                             (ii)  explain how the fees are determined.

           (10)  The superannuation trustee:

                     (a)  must provide the fees and costs of each of the MySuper products and investment options in accordance with Schedule 10, and may do so by applying, adopting or incorporating a matter in writing; and

                     (b)  may provide more detailed information about fees and costs by applying, adopting or incorporating a matter in writing.

9  Contents of section 7 (How super is taxed)

             (1)  Section 7 of the Product Disclosure Statement must describe, in the form of a summary, the significant tax information relating to superannuation products, including:

                     (a)  how tax amounts due are paid; and

                     (b)  the main taxes that are payable in relation to contributions (if contributions are permitted), fund earnings and withdrawals.

             (2)  Section 7 must:

                     (a)  state, in the form of a warning, that the person should provide the person’s tax file number as part of acquiring the superannuation product; and

                     (b)  explain, in the form of a summary, the consequences if the person does not provide the person’s tax file number; and

                     (c)  if contributions are permitted—set out a warning that there will be taxation consequences if the contribution caps applicable to superannuation are exceeded.

             (3)  The superannuation trustee may provide additional information about taxation matters relating to superannuation products by applying, adopting or incorporating a matter in writing.

10  Contents of section 8 (Insurance in your super)

             (1)  If the superannuation product does not offer insurance cover, the Product Disclosure Statement is not required to include any of the information in this clause.

             (2)  If the superannuation product offers insurance cover, section 8 must:

                     (a)  describe, in the form of a summary, the main types of insurance cover that a person can acquire; and

                     (b)  describe, in the form of a summary, how to apply for insurance cover; and

                     (c)  include a statement to the effect that there are costs associated with insurance cover; and

                     (d)  describe, in the form of a summary, who is responsible for paying the insurance costs and how they are calculated.

             (3)  If the superannuation product offers insurance cover by default, section 8 must:

                     (a)  describe, in the form of a summary, the level and type of cover; and

                     (b)  state:

                              (i)  the actual cost of the cover in dollars, or the range of costs that would be payable depending on a person’s circumstances; and

                             (ii)  who is responsible for paying the costs; and

                     (c)  state whether a person can:

                              (i)  decline to acquire the cover; or

                             (ii)  cancel the cover; and

                     (d)  state how a person can decline to acquire the cover or cancel the cover; and

                     (e)  state whether a person can change the person’s insurance cover; and

                      (f)  state how a person can change the person’s insurance cover; and

                     (g)  state, in the form of a warning, that, unless a person declines to acquire the default insurance cover or cancels it, the cost of the cover will be deducted from the person’s account or from the person’s contributions (as applicable); and

                     (h)  include information about eligibility for, and the cancellation of, the insurance cover; and

                      (i)  include information about any conditions and exclusions that are applicable to the insurance cover.

             (4)  If the superannuation product does not offer insurance cover by default but offers insurance cover as an option, section 8 must include the following information:

                     (a)  the level and type of insurance cover available;

                     (b)  the actual cost of the cover in dollars, or the range of costs that would be payable depending on a person’s circumstances;

                     (c)  eligibility for, and the cancellation of, the insurance cover;

                     (d)  any conditions and exclusions that are applicable to the insurance cover;

                     (e)  any other significant matter in relation to insurance cover.

Examples for paragraph (e):

1                 Information about how a person can apply for the insurance cover.

2                 Information about how a person can subsequently change or cancel the insurance cover.

             (5)  The superannuation trustee:

                     (a)  may provide the information in paragraphs (3)(h) and (i) and subclause (4); and

                     (b)  may provide additional information about insurance cover;

by applying, adopting or incorporating a matter in writing.

             (6)  If information about:

                     (a)  eligibility for, or the cancellation of, the insurance cover; or

                     (b)  any conditions and exclusions that are applicable to the insurance cover;

is provided for in accordance with subclause (5), section 8 must include a warning to the effect that the matter may affect a person’s entitlement to insurance cover and that the information should be read before deciding whether the insurance is appropriate.

             (7)  If information about:

                     (a)  the level and type of optional insurance cover available; or

                     (b)  the actual cost of the optional insurance cover in dollars, or the range of costs that would be payable depending on a person’s circumstances; or

                     (c)  any other significant matter in relation to insurance cover;

is provided for in accordance with subclause (5), section 8 must include a warning to the effect that the information should be read before deciding whether the insurance is appropriate.

11  Contents of section 9 (How to open an account)

             (1)  Section 9 of the Product Disclosure Statement must, if applicable:

                     (a)  describe, in the form of a summary, how to open an account with the superannuation provider; and

                     (b)  explain the cooling‑off period that applies to the superannuation product; and

                     (c)  explain how to make a complaint (by means that include the provision of relevant contact details).

Note:          The effect of subclause 10(1) is that the Product Disclosure Statement is not required to include section 8 (as set out in clause 10) if the superannuation product does not offer insurance cover. In that case, subclause 2(2) allows the Statement to present the information in this clause as “section 8” or “section 9”.

             (2)  The superannuation trustee:

                     (a)  may provide more detailed information about cooling‑off periods, complaints and dispute resolution; and

                     (b)  may provide that information by applying, adopting or incorporating a matter in writing.

Schedule 10EForm and content of Product Disclosure Statement—simple managed investment scheme

(regulation 7.9.11W)

  

1  Length and font size for Product Disclosure Statement for simple managed investment scheme

             (1)  The length of a Product Disclosure Statement for a simple managed investment scheme to which Subdivision 4.2C of Division 4 of Part 7.9 applies (not including any matter in writing that is applied, adopted or incorporated by the Statement) must not exceed:

                     (a)  if it is printed on A4 pages—8 pages; or

                     (b)  if it is printed on A5 pages—16 pages; or

                     (c)  if it is printed on DL pages—24 pages; or

                     (d)  otherwise—if it is formatted to be printed on A4 pages, 8 A4 pages.

             (2)  The minimum font size for text in the Statement is:

                     (a)  for the name, address, ABN (if applicable), ACN (if applicable), ARSN and AFSL (if applicable) of the person giving the Statement—8 points; and

                     (b)  for all other text—9 points.

Note 1:       The Product Disclosure Statement must be worded and presented in a clear, concise and effective manner—see subsection 1013C(3) of the Act.

Note 2:       A person required to a give a Product Disclosure Statement to a vision‑impaired person must comply with its obligations under the Disability Discrimination Act 1992.

2  Minimum content of Product Disclosure Statement for simple managed investment scheme

             (1)  The Product Disclosure Statement must include sections which must be numbered and titled as follows:

                       1.  About [name of responsible entity]

                       2.  How [name of simple managed investment scheme] works

                       3.  Benefits of investing in [name of simple managed investment scheme]

                       4.  Risks of managed investment schemes

                       5.  How we invest your money

                       6.  Fees and costs

                       7.  How managed investment schemes are taxed

                       8.  How to apply.

             (2)  The Statement must include:

                     (a)  a table of contents that sets out the titles mentioned in subclause (1); and

                     (b)  the telephone number of the responsible entity for the simple managed investment scheme to enable a person who invests in the simple managed investment scheme to request a copy of the following under regulation 7.9.11Z:

                              (i)  a copy of the Statement; and

                             (ii)  a copy of a matter in writing that is applied, adopted or incorporated by the Statement.

             (3)  The Statement must:

                     (a)  advise a person reading the Statement that:

                              (i)  it is a summary of significant information and contains a number of references to important information (each of which forms part of the Statement); and

                             (ii)  persons should consider that information before making a decision about the simple managed investment scheme; and

                            (iii)  the information provided in the Statement is general information only and does not take account of the person’s personal financial situation or needs; and

                            (iv)  the person should obtain financial advice tailored to the person’s personal circumstances; and

                     (b)  display the advice:

                              (i)  at or near the beginning of the document; and

                             (ii)  in a prominent position and style.

             (4)  The Statement:

                     (a)  may include additional sections after sections 1 to 8; and

                     (b)  may include other information;

to an extent that does not have the effect of contravening subclause 1(1).

             (5)  The Product Disclosure Statement does not need to indicate that a particular requirement is not applicable to the simple managed investment scheme.

Note:          The Act, as modified in accordance with Subdivision 4.2C of Division 4 of Part 7.9, requires information to be included in the Product Disclosure Statement only to the extent to which the requirement is applicable to the simple managed investment scheme.

3  Contents of section 1 (About [name of responsible entity])

             (1)  Section 1 of the Product Disclosure Statement must describe, in the form of a summary:

                     (a)  the responsible entity and its role in operating the simple managed investment scheme; and

                     (b)  the investment manager, if the investment manager is different from the responsible entity.

             (2)  If there is more than 1 investment manager, the Statement may describe a particular manager by applying, adopting or incorporating a matter in writing.

4  Contents of section 2 (How [name of simple managed investment scheme] works)

             (1)  Section 2 of the Product Disclosure Statement must describe, in the form of a summary:

                     (a)  how the simple managed investment works; and

                     (b)  the interests that members acquire.

             (2)  Section 2 must:

                     (a)  if applicable—describe, in the form of a summary, the minimum investment amounts; and

                     (b)  provide information about the structure of the simple managed investment scheme; and

                     (c)  state, in general terms, that the price of interests will vary as the market value of assets in the simple managed investment scheme rises or falls; and

                     (d)  describe, in the form of a summary, how members can increase or decrease their investment by acquiring interests or disposing of interests; and

                     (e)  state, in general terms, that in some circumstances, such as when there is a freeze on withdrawals, members may not be able to withdraw their funds within the usual period upon request; and

                      (f)  describe the frequency of distributions and explain how distributions are calculated.

             (3)  The responsible entity:

                     (a)  may provide more detailed information on the acquisition and disposal of interests; and

                     (b)  may provide the information by applying, adopting or incorporating a matter in writing.

5  Contents of section 3 (Benefits of investing in [name of simple managed investment scheme])

             (1)  Section 3 of the Product Disclosure Statement must, before setting out any other information, describe, in the form of a summary:

                     (a)  the significant features of the simple managed investment scheme; and

                     (b)  the significant benefits of the simple managed investment scheme.

             (2)  The responsible entity may provide additional information about:

                     (a)  any feature or benefit of the simple managed investment scheme; or

                     (b)  other features and benefits of the simple managed investment scheme; or

                     (c)  other features and benefits of simple managed investment schemes;

by applying, adopting or incorporating a matter in writing.

6  Contents of section 4 (Risks of managed investment schemes)

             (1)  Section 4 of the Product Disclosure Statement must include statements to the following effect:

                     (a)  all investments carry risk;

                     (b)  different strategies may carry different levels of risk, depending on the assets that make up the strategy;

                     (c)  assets with the highest long‑term returns may also carry the highest level of short‑term risk.

             (2)  Section 4 must describe, in the form of a summary, the significant risks of the particular simple managed investment scheme.

             (3)  Section 4 must describe the significant risks of managed investment schemes (to the extent only that the description required by subitem (2) has not already described the risk) by including statements to the following effect:

                     (a)  the value of investments will vary;

                     (b)  the level of returns will vary, and future returns may differ from past returns;

                     (c)  returns are not guaranteed, and members may lose some of their money;

                     (d)  laws affecting registered managed investment schemes may change in the future;

                     (e)  the level of risk for each person will vary depending on a range of factors, including:

                              (i)  age; and

                             (ii)  investment time frames; and

                            (iii)  where other parts of the member’s wealth are invested; and

                            (iv)  the member’s risk tolerance.

             (4)  The responsible entity may provide additional information about significant risks of managed investment schemes by applying, adopting or incorporating a matter in writing.

7  Contents of section 5 (How we invest your money)

             (1)  Section 5 of the Product Disclosure Statement must describe, in the form of a summary, the investment options offered by the simple managed investment scheme.

             (2)  Section 5 must state, in the form of a warning, that the person should consider:

                     (a)  the likely investment return; and

                     (b)  the risk; and

                     (c)  the person’s investment timeframe;

when choosing an option in which to invest.

New simple managed investment scheme

             (3)  If the simple managed investment scheme has never previously been offered to investors, and does not offer any investment option mentioned in subclauses (4) and (5) about which section 5 can give information, section 5 must give the following information for the investment option that the responsible entity reasonably believes has the least volatile underlying assets (whether or not section 5 gives that information for any other investment option):

                     (a)  the name of the option and a short description of it, including the type of investors for whom it is intended to be suitable;

                     (b)  a list of the asset classes in which the option invests, setting out the strategic asset allocation of the asset classes in the form of a range or otherwise;

                     (c)  a description of the investment return objective of the option;

                     (d)  the minimum suggested time frame for holding the investment;

                     (e)  a description, in the form of a summary, of the risk level of the option.

Balanced investment option

             (4)  If the simple managed investment scheme has a balanced investment option (within the meaning given by item 101 of Schedule 10), section 5 must give the following information for the balanced investment option (whether or not section 5 gives that information for any other investment option):

                     (a)  the name of the option and a short description of it, including the type of investors for whom it is intended to be suitable;

                     (b)  a list of the asset classes in which the option invests, setting out the strategic asset allocation of the asset classes in the form of a range or otherwise;

                     (c)  a description of the investment return objective of the option;

                     (d)  the minimum suggested time frame for holding the investment;

                     (e)  a description, in the form of a summary, of the risk level of the option.

No balanced investment option

             (5)  If the simple managed investment scheme does not have a balanced investment option (within the meaning given by item 101 of Schedule 10), section 5 must give the following information for the investment option under which the entity has the most funds invested (whether or not section 5 gives that information for any other investment option):

                     (a)  the name of the option and a short description of it, including the type of investors for whom it is intended to be suitable;

                     (b)  a list of the asset classes in which the option invests, setting out the strategic asset allocation of the asset classes in the form of a range or otherwise;

                     (c)  a description of the investment return objective of the option;

                     (d)  the minimum suggested time frame for holding the investment;

                     (e)  a description, in the form of a summary, of the risk level of the option.

             (6)  Section 5:

                     (a)  must make provision for each investment option which is not presented in section 5 in accordance with subclause (3), (4) or (5); and

                     (b)  may make provision for the option by applying, adopting or incorporating matter in a document that:

                              (i)  includes the information mentioned in subclause (3), (4) or (5); and

                             (ii)  presents it in the way mentioned in the subclause.

             (7)  The responsible entity:

                     (a)  must provide information about how a member may switch the member’s investments; and

                     (b)  must provide information about:

                              (i)  whether the simple managed investment scheme’s investment options may be changed; and

                             (ii)  if so, how the options may be changed; and

                     (c)  must describe, in the form of a summary, the extent to which labour standards or environmental, social or ethical considerations are taken into account in the selection, retention or realisation of investments relating to the simple managed investment scheme; and

                     (d)  may provide the information in paragraphs (a) to (c), and any additional information about investment options, by applying, adopting or incorporating a matter in writing.

8  Contents of section 6 (Fees and costs)

             (1)  For each investment option of the simple managed investment scheme that is presented in section 5 in detail in accordance with subclause 7(3), section 6 of the Product Disclosure Statement must state:

                     (a)  the cost of acquiring the option; and

                     (b)  the fees and costs that are charged in relation to the option.

Note:          The statement will be made using the template set out in subclause (3).

             (2)  Before setting out any other substantive material, section 6 must:

                     (a)  set out the Consumer Advisory Warning in clause 221 of Schedule 10; and

                     (b)  give a concise example in the form set out in the Consumer Advisory Warning in clause 221 of Schedule 10.

             (3)  Section 6 must set out the fees and costs for each investment option that is presented in section 5 in detail in accordance with subclause 7(3), using the following template:

 

TYPE OF FEE OR COST

AMOUNT

 

Fees when your money moves in or out of the fund

 

 

Establishment fee

 

 

Contribution fee

 

 

Withdrawal fee

 

 

Termination fee

 

 

Management costs

 

 

The fees and costs for managing your investment

 

[If there are other service fees, such as advisor service fees or special request fees, include a cross reference to the document that contains the information mentioned in paragraph (10)(a).].

             (4)  The template is to be completed in accordance with Division 3 of Schedule 10 (including definitions applicable to that Division), except that:

                     (a)  clauses 203, 205, 206 and 207 and subclause 208(2) do not apply; and

                     (b)  the reference in clause 204 to clause 205 and clause 206 does not apply; and

                     (c)  the example in subclause 208(1) is to be treated as stating:

                            “(for example, by using an asterisk with a footnote stating ‘The amount of this fee can be negotiated’)”.

             (5)  Section 6 must set out the information about fee changes set out in paragraph 209(k) of Schedule 10.

             (6)  Section 6 must:

                     (a)  state that the information in the template can be used to compare costs between different simple managed investment schemes; and

                     (b)  state concisely, and in general terms, that fees and costs can be paid directly from the person’s account or deducted from investment returns.

             (7)  Section 6 must give a worked example as follows:

                     (a)  if the simple managed investment scheme does not have a balanced investment option (within the meaning given by item 101 of Schedule 10), section 6 must give a worked example for the default investment option;

                     (b)  if the simple managed investment scheme does not have a default option, and does not have a balanced investment option, section 6 must give a worked example for the investment option under which the entity has the most funds invested;

in accordance with Divisions 5 and 6 of Schedule 10 (including definitions applicable to those Divisions), except that clauses 211 and 220 do not apply.

             (8)  Section 6:

                     (a)  must refer to the calculator provided by ASIC on its FIDO website or a similar website operated by or on behalf of ASIC; and

                     (b)  may also refer to the calculator (if any) provided by the responsible entity on its website; and

                     (c)  must state that each calculator referred to can be used to calculate the effect of fees and costs on account balances.

             (9)  If additional fees may be payable to a financial advisor, section 6 must:

                     (a)  state, in the form of a warning, that additional fees may be paid to a financial advisor if a financial advisor is consulted; and

                     (b)  refer to the Statement of Advice in which details of the fees are set out.

           (10)  The responsible entity:

                     (a)  must provide the fees and costs of each of the investment options in accordance with Schedule 10, and may do so by applying, adopting or incorporating a matter in writing; and

                     (b)  may provide more detailed information about fees and costs by applying, adopting or incorporating a matter in writing.

9  Contents of section 7 (How managed investment schemes are taxed)

             (1)  Section 7 of the Product Disclosure Statement must state, in the form of a warning, that:

                     (a)  investing in a registered managed investment scheme is likely to have tax consequences; and

                     (b)  persons are strongly advised to seek professional tax advice.

             (2)  Section 7 must also include statements to the following effect:

                     (a)  registered managed investment schemes do not pay tax on behalf of members;

                     (b)  members are assessed for tax on any income and capital gains generated by the registered managed investment scheme.

             (3)  The responsible entity may provide additional information about:

                     (a)  taxation matters relating to the registered managed investment scheme; or

                     (b)  taxation matters relating to registered managed investment schemes;

by applying, adopting or incorporating a matter in writing.

10  Contents of section 8 (How to apply)

             (1)  Section 8 of the Product Disclosure Statement must:

                     (a)  describe, in the form of a summary, how to invest in the simple managed investment scheme; and

                     (b)  explain the cooling‑off period that applies to the simple managed investment scheme; and

                     (c)  explain how to make a complaint (by means that include the provision of relevant contact details).

             (2)  The responsible entity:

                     (a)  may provide more detailed information about cooling‑off periods, complaints and dispute resolution; and

                     (b)  may provide that information by applying, adopting or incorporating a matter in writing.


Schedule 11Persons who are not covered by section 1433 of the Act

(regulation 10.2.36)

  

 

Item

Person

Period

1

A person who is or has been an insolvent under administration

5 years after the start of the administration

2

A body corporate that has been a Chapter 5 body corporate

5 years after the start of the administration

3

A person who has been convicted of fraud

10 years after the conviction

4

A person to whom the following circumstances apply:

(a) the person is the subject of legal proceedings for criminal fraud;

(b) the proceedings could, because of the content or nature of the relevant originating process, result in a judgment being made that would cause a person to be someone to whom item 3 applies;

(c) the court has not delivered a judgment in relation to the issue of the fraud

 

5

A person to whom the following circumstances apply:

(a) the person has been found liable by a court for a contravention of a law relating to financial services activities;

(b) the proceedings were brought by a regulator;

(c) the proceedings related to conduct that occurred in the course of the person’s engaging in financial services activities, and was related to that person’s activities

10 years after the conduct first occurred

6

A person to whom the following circumstances apply:

(a) the person is the subject of legal proceedings for a contravention of a law relating to financial services activities;

(b) the proceedings were brought by a regulator;

 

 

(c) the proceedings relate to conduct that occurred in the course of the person’s engaging in financial services activities, and was related to that person’s activities;

(d) the court has not delivered a judgment in relation to the contravention

 

7

A person who has had:

(a) an authorisation; or

(b) a registration; or

(c) a licence; or

(d) the ability to engage in financial services activities;

cancelled, suspended or revoked by, or as a direct result of the actions of, a regulator

5 years after the cancellation, suspension or revocation

8

A person who is a responsible officer of a person mentioned in item 1

 

8A

A person who is a subsidiary of a body corporate mentioned in item 2

 

8B

A person (person 1) who is related body corporate of a body corporate that is mentioned in item 2 (person 2), if person 2 has previously held a licence, registration or authorisation granted by a regulator mentioned in paragraphs (a) to (d) of the definition of regulator in regulation 10.2.35

 

9

A person an associate of whom is a person mentioned in any of items 3 to 7

 

10

A person who is deemed to be a registered insurance broker under subsection 24(2) of the Insurance (Agents and Brokers) Act 1984

This item applies to the person only to the extent that the person operates insurance broking activities that are described in that Act

 

Schedule 12ASIC transitional standards

(regulation 12.7.01)

  

1.                The following provisions of Book 3 of the Prudential Notes and Prudential Standards issued by AFIC under Part 4 of the AFIC Code of a State or Territory, as in force immediately before the transfer date:

                     (a)  the modification of the accounting standard known as Accounting Standard AASB 1032 (published in the Gazette on 12 December 1996) by Prudential Standard 3.3.1, except the definition of deposits added to the accounting standard by the Prudential Standard;

                     (b)  Prudential Standard 3.5.4;

                     (c)  Prudential Standard 3.5.5;

                     (d)  Prudential Standard 3.7.1;

                     (e)  Prudential Standard 3.7.4;

                      (f)  Prudential Standard 3.7.5.

2.                The following provisions of Book 4 of the Prudential Notes and Prudential Standards issued by AFIC under Part 4 of the AFIC Code of a State or Territory, as in force immediately before the transfer date:

                     (a)  the modification of the accounting standard known Accounting Standard AASB 1032 (published in the Gazette on 12 December 1996) by Prudential Standard 4.3.1, except the definition of deposits added to the accounting standard by the Prudential Standard;

                     (b)  Prudential Standard 4.7.1;

                     (c)  Prudential Standard 4.7.4;

                     (d)  Prudential Standard 4.7.5.

3.                The following provisions of Book 5 of the Prudential Notes and Prudential Standards issued by AFIC under Part 4 of the AFIC Code of a State or Territory, as in force immediately before the transfer date:

                     (a)  Prudential Standard 5.5.1;

                     (b)  Prudential Standard 5.5.3;

                     (c)  Prudential Standard 5.5.4.

4.                The following provisions of Book 6 of the Prudential Notes and Prudential Standards issued by AFIC under Part 4 of the AFIC Code of a State or Territory, as in force immediately before the transfer date:

                     (a)  Prudential Standard 6.7.2;

                     (b)  Prudential Standard 6.7.4;

                     (c)  Prudential Standard 6.7.5;

                     (d)  Prudential Standard 6.8.3.

Schedule 13Transition to Part 3 of the Insolvency Practice Schedule (Corporations)

Note:       See subregulation 10.25.01(3).

  

  

Corporations Act 2001

1  Section 1550 (paragraph relating to Part 3)

Omit “that starts on or after the commencement of Part 1 of Schedule 2 to the Insolvency Law Reform Act 2016”, substitute “that starts on or after 1 September 2017”.

2  After section 1554

Insert:

1554A  Saving of Register of Official Liquidators

             (1)  This section applies to the Register of Official Liquidators kept in accordance with subsection 1286(2) of the old Act.

             (2)  Despite the repeal of sections 1283 and 1286 by Schedule 2 to the Insolvency Law Reform Act 2016, the Register of Official Liquidators continues in existence, and may be dealt with, as if those repeals had not happened.

3  Section 1578 (paragraph relating to new external administrations)

Omit “the commencement of the Insolvency Law Reform Act 2016 (called new external administrations)”, substitute “1 September 2017”.

4  Section 1579

Repeal the section, substitute:

1579  Application of Part 3 of the Insolvency Practice Schedule (Corporations)—general rules

             (1)  Part 3 of the Insolvency Practice Schedule (Corporations) applies in relation to an external administration of a company that starts on or after 1 September 2017.

             (2)  Part 3 of the Insolvency Practice Schedule (Corporations) applies in relation to an ongoing external administration of a company in accordance with this Division.

5  Sections 1581 and 1582

Repeal the sections, substitute:

1581  Old Act continues to apply in relation to remuneration for administrators already appointed or appointed during transition period

             (1)  Despite the repeal of sections 449E and 473 and the repeal and substitution of subsections 499(3) to (7) of the old Act by Schedule 2 to the Insolvency Law Reform Act 2016, the old Act continues to apply in relation to the remuneration of an external administrator of a company who is appointed:

                     (a)  before the start time; or

                     (b)  during the transition period.

             (2)  Despite subsection (1), if, under Subdivision F of this Division, Division 75 of the Insolvency Practice Schedule (Corporations) rather than the old Act would apply to a meeting that deals with the remuneration of an external administrator of a company who is appointed before the start time or during the transition period, Division 75 of the Insolvency Practice Schedule (Corporations) applies to that meeting.

             (3)  In this section:

start time means the commencement of Schedule 1 to the Insolvency Law Reform Act 2016.

transition period means the period:

                     (a)  starting immediately after the start time; and

                     (b)  ending at the end of 31 August 2017.

1582  Duties of administrators relating to remuneration and other benefits

             (1)  Section 60‑20 of the Insolvency Practice Schedule (Corporations) applies on and after 1 September 2017 in relation to an external administrator of an ongoing external administration of a company regardless of when the administrator was appointed.

             (2)  However, that section does not apply in relation to arrangements made before 1 September 2017.

6  Subsection 1582(1)

After “applies”, insert “on and after 1 September 2017”.

7  Section 1584

Omit all the words after “applies”, substitute “on and after 1 September 2017 regardless of when the vacancy in the office of the liquidator arose”.

8  At the end of section 1586

Add “on and after 1 September 2017”.

9  Subsection 1588(2) (heading)

Repeal the heading, substitute:

Old regulations continue to apply to money received before 1 September 2017

10  Subsection 1590(2) (heading)

Repeal the heading, substitute:

Old regulations continue to apply to securities received before 1 September 2017

11  At the end of section 1591

Add “on and after 1 September 2017”.

12  Section 1592

Repeal the section, substitute:

1592  Transitional rules for annual administration returns

             (1)  Section 70‑5 of the Insolvency Practice Schedule (Corporations) applies in relation to a person if the person first began to be an external administrator of a company on or after 1 September 2017.

             (2)  Section 70‑5 of the Insolvency Practice Schedule (Corporations) also applies in relation to a person if the person first began to be an external administrator of a company before 1 September 2017 as if the reference in that section to an administration return year for the administrator were a reference to:

                     (a)  the first full year starting on or after 1 September 2017 that is an anniversary of when the person first began to be the external administrator of the company; and

                     (b)  each subsequent period of 12 months.

             (3)  Despite the repeal of the old return provisions by Schedule 2 to the Insolvency Law Reform Act 2016, those provisions continue to apply to an external administrator of a company appointed before 1 September 2017:

                     (a)  if the end of the 6‑month period referred to in the old return provisions occurs before 1 March 2018—in relation to that period; and

                     (b)  if the end of that period is not an anniversary of the administrator’s appointment—in relation to the subsequent 6‑month period.

             (4)  To avoid doubt, despite the repeal of the old return provisions by Schedule 2 to the Insolvency Law Reform Act 2016, audits may be continued in relation to accounts lodged under those provisions as if the old Act continued to apply.

             (5)  In this section:

old return provisions means the following provisions of the old Act:

                     (a)  subsection 438E(1);

                     (b)  subsection 445J(1);

                     (c)  subsection 539(1), other than the extent to which it relates to a liquidator ceasing to act as liquidator.

1592A  Transitional rules for end of administration returns

             (1)  Section 70‑6 of the Insolvency Practice Schedule (Corporations) applies in relation to external administrations that end on or after 1 September 2017.

             (2)  Despite the repeal of the old return provisions by Schedule 2 to the Insolvency Law Reform Act 2016, those provisions continue to apply, in relation to an external administrator of a company, if the external administrator ceases to act as an external administrator for the company before 1 September 2017.

             (3)  To avoid doubt, despite the repeal of the old return provisions by Schedule 2 to the Insolvency Law Reform Act 2016, audits may be continued in relation to accounts lodged under those provisions as if the old Act continued to apply.

             (4)  In this section:

old return provisions means the following provisions of the old Act, as in force before their repeal by Schedule 2 to the Insolvency Law Reform Act 2016:

                     (a)  subsection 438E(2);

                     (b)  subsection 445J(2);

                     (c)  subsection 539(1), to the extent to which it relates to a liquidator ceasing to act as liquidator.

13  Section 1594

After “apply”, insert “on and after 1 September 2017”.

14  Subsection 1596(1)

After “applies”, insert “on and after 1 September 2017”.

15  Sections 1597, 1598 and 1599

After “applies”, insert “on and after 1 September 2017”.

16  At the end of section 1601

Add “on and after 1 September 2017”.

17  Section 1604

Omit “2017”, insert “2018”.

18  Section 1606

After “apply”, insert “on and after 1 September 2017”.

19  Section 1606

Omit “the commencement day”, substitute “that day”.

20  Section 1612

After “apply”, insert “on and after 1 September 2017”.

21  Section 1612

Omit “the commencement day”, substitute “that day”.

22  Section 1613

After “applies”, insert “on and after 1 September 2017”.

23  Section 1615

After “applies”, insert “on and after 1 September 2017”.

24  Section 1615

Omit “the commencement day”, substitute “that day”.

25  Subsection 1618(2)

After “apply”, insert “on and after 1 September 2017”.

26  Subsection 1618(2)

Omit “the commencement day”, substitute “that day”.

27  Subsection 1618(3)

After “applies”, insert “on and after 1 September 2017”.

28  Subsection 1618(3)

Omit “the commencement day”, substitute “that day”.

29  Subsection 1618(4)

After “applies”, insert “on and after 1 September 2017”.

30  Subsection 1618(4)

Omit “the commencement day”, substitute “that day”.

31  Subsection 1618(6)

After “applies”, insert “on and after 1 September 2017”.

32  Subsection 1618(6)

Omit “the commencement day”, substitute “that day”.

33  Subsection 1619(2)

After “apply”, insert “on and after 1 September 2017”.

34  Subsection 1619(2)

Omit “the commencement day”, substitute “that day”.

35  Subsection 1619(4)

After “applies”, insert “on and after 1 September 2017”.

36  Subsection 1619(4)

Omit “the commencement day”, substitute “that day”.

37  Section 1620

After “applies”, insert “on and after 1 September 2017”.

38  Section 1620

Omit “the commencement day”, substitute “that day”.

39  Section 1623

Repeal the section, substitute:

1623  Transitional rules for controller returns

             (1)  Section 422A, as inserted by Schedule 2 to the Insolvency Law Reform Act 2016, applies in relation to a person if the person first began to be a controller of the property of a corporation on or after 1 September 2017.

             (2)  Section 422A, as inserted by Schedule 2 to the Insolvency Law Reform Act 2016, also applies in relation to a person if the person first began to be the controller of the property of a corporation before 1 September 2017 as if the reference in that section to a control return year for the controller were a reference to:

                     (a)  the first full year starting on or after 1 September 2017 that is an anniversary of when the person first began to be the controller of the property of a corporation; and

                     (b)  each subsequent period of 12 months.

             (3)  Despite the repeal of subsections 432(1) and (1A) of the old Act by Schedule 2 to the Insolvency Law Reform Act 2016, those subsections continue to apply, in relation to a controller of a corporation appointed before 1 September 2017:

                     (a)  if the end of the 6‑month period referred to in paragraph 432(1)(a) occurs before 1 March 2018—in relation to that period; and

                     (b)  if the end of that period is not an anniversary of the administrator’s appointment—in relation to the subsequent 6‑month period.

             (4)  To avoid doubt, despite the repeal of subsections 432(1) and (1A) of the old Act by Schedule 2 to the Insolvency Law Reform Act 2016, audits may be continued in relation to accounts lodged under those provisions as if the old Act continued to apply.

1623A  Transitional rules for end of control returns

             (1)  Section 422B, as inserted by Schedule 2 to the Insolvency Law Reform Act 2016, applies in relation to a control of the property of a corporation that ends on or after 1 September 2017.

             (2)  Despite the repeal of subsections 432(1) and (1A) of the old Act by Schedule 2 to the Insolvency Law Reform Act 2016, those subsections continue to apply, in relation to controllers that cease to be a controller of property of a corporation, if the cessation occurs before 1 September 2017.

40  Subsection 1627(3)

After “apply”, insert “on and after 1 September 2017”.