Section 1023E — Corporations Act 2001 (Cth)

(1) In considering whether a financial product has resulted in, or will or is likely to result in, significant detriment to retail clients for the purposes of this Part, the following must be taken into account:

(a) the nature and extent of the detriment;

(b) without limiting paragraph (a), the actual or potential financial loss to retail clients resulting from the product;

(c) the impact that the detriment has had, or will or is likely to have, on retail clients;

(d) any other matter prescribed by regulations made for the purposes of this paragraph.

(2) Subsection (1) does not limit the matters to be taken into account in considering whether a financial product has resulted in, or will or is likely to result in, significant detriment to retail clients for the purposes of this Part.

(3) A financial product may result in significant detriment to retail clients even if a person has complied with the disclosure requirements in Chapter 6D or this Chapter, and with the person’s obligations under Part 7.8A, in relation to the product.

Related sections

• s 1023B — Meaning of financial product—Part 7.9A
• s 1023C — Application of product intervention orders
• s 1023D — ASIC may make product intervention orders
• s 1023F — ASIC to consult before making product intervention orders
• s 1023G — Commencement and duration of product intervention orders
• s 1023H — Extension of product intervention orders

Research how courts apply s 1023E

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