Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to this section, the client has the right to return the financial product to the responsible person and to have the money they paid to acquire the product repaid. This is so even if the responsible person is being wound up.
(2) The right to return the product must be exercised by notifying the responsible person in one of the following ways:
(a) in writing; or
(b) electronically; or
(c) in any other way specified in the regulations.
Also, if the regulations require the client to comply with other requirements in order to exercise the right to return the product, those other requirements must be complied with.
(3) The right to return the product can only be exercised during the period of 14 days starting on the earlier of:
(a) the time when the confirmation requirement (if applicable) is complied with; or
(b) the end of the fifth business day after the day on which the product was issued or sold to the client.
(4) For the purposes of subsection (3), the confirmation requirement is complied with when:
(a) the client receives confirmation, as mentioned in paragraph 1017F(5)(a), of the transaction by which they acquired the product; or
(b) confirmation of that transaction is available to the client by a facility as mentioned in paragraph 1017F(5)(b).
(5) The right to return the product (and have money paid to acquire it repaid) cannot be exercised at any time after:
(a) the client has (whether before or after the start of the period referred to in subsection (3)) exercised a right or power that they have under the terms applicable to the product; or
(b) the time (whether before or after the start of the period referred to in subsection (3)) at which, under the terms applicable to the product, the client's rights or powers in respect of the product end.
Note: So, e.g.:
(a) if the product is a contract of insurance, the right to return cannot be exercised after the client has made a claim under the contract of insurance; and
(b) if the product is a contract of insurance covering a period of only one week, the right to return cannot be exercised after the end of that week.
(5A) The regulations may specify other circumstances in which the right to return the product (and have money paid to acquire it repaid) cannot be exercised.
(6) On the exercise of the right to return the product:
(a) if the product is constituted by a legal relationship between the client and the issuer of the product--that relationship is, by force of this section, terminated with effect from that time without penalty to the client; and
(b) any contract for the acquisition of the product by the client is, by force of this section, terminated with effect from that time without penalty to the client.
(7) The regulations may provide for consequences and obligations (in addition to those provided for by subsection (6)) to apply if the right to return a financial product is exercised.
(8) The regulations may provide that, in specified circumstances, the amount to be repaid on exercise of the right to return a financial product is to be increased or reduced in accordance with the regulations.