CORPORATIONS REGULATIONS 2001 - REG 7.9.14 Remedies for person acquiring financial product under defective Product Disclosure Statement: superannuation and RSAs

CORPORATIONS REGULATIONS 2001 - REG 7.9.14

  (1)   This regulation applies to a financial product:

  (a)   that is:

  (i)   a superannuation product to which requirements of the SIS Act relating to preservation rules and cashing restrictions apply; or

  (ii)   an RSA to which requirements of the RSA Regulations relating to preservation rules and cashing restrictions apply; and

  (b)   that has been issued or sold in contravention of section   1016E of the Act.

  (2)   For subsection   1016F(3) of the Act, to exercise a right of return for the financial product in circumstances in which the moneys paid to acquire the financial product are subject to the preservation rules and cashing restrictions, the client must:

  (a)   nominate a superannuation entity or RSA into which the monies subject to the preservation rules and cashing restrictions, and to which preservation conditions apply, are to be repaid; and

  (b)   make the nomination not later than 1 month after notifying the responsible person of the right to exercise the right of return.

  (2A)   The right of return is taken to have been exercised only on receipt by the responsible person of the nomination.

  (3)   The client must notify the responsible person in writing or by electronic means.

  (4)   For subsection   1016F(6) of the Act, the responsible person must repay the monies as directed.

  (5)   For subsection   1019B(7) of the Act, if:

  (a)   a financial product mentioned in this regulation is subject to the nomination of a further superannuation entity or RSA; and

  (b)   the application in relation to the financial product is not accepted by the nominated superannuation entity or RSA;

the responsible person may rollover or transfer the client's benefits to an eligible rollover fund.