427False or misleading statements and omissions

1. Subsections (2) to (5) apply if—

2. there is—
   1. a statement in a disclosure statement that is false or misleading or is likely to mislead; or
   2. an omission from a disclosure statement of information that is required to be contained in the disclosure statement by the regulations; and
3. the statement or omission is materially adverse from the point of view of a retail investor.

4. The licensee or authorised body must not provide the disclosure statement to a person under section 423.

5. If the disclosure statement has already been provided to a person (A), the licensee or authorised body must not continue to provide the service to A—

6. in the prescribed circumstances (if any); or
7. if the licensee or authorised body fails to comply with any prescribed conditions.

8. If the licensee or authorised body continues to provide the service to A, the licensee or authorised body must provide to A a new disclosure statement that is not defective in terms of subsection (1)(a) and (b).

9. The new disclosure statement under subsection (4) must be provided in the prescribed manner (if any).

10. A person must not make available to any person or the public any information under section 426A (the further disclosure) if—

11. there is—
    1. a statement in the further disclosure that is false or misleading or is likely to mislead; or
    2. an omission from the further disclosure of information that is required to be contained in the further disclosure by this Act or the regulations; and
12. the statement or omission is materially adverse from the point of view of a retail investor.

13. See section 511 (offence to knowingly or recklessly contravene subsection (2) or (6)).