Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.8A - DESIGN AND DISTRIBUTION REQUIREMENTS RELATING TO FINANCIAL PRODUCTS FOR RETAIL CLIENTS  

Division 1 - Preliminary  

SECTION 994A   DEFINITIONS  

994A(1)  
In this Part:

appropriate
: a target market determination for a financial product is appropriate if it satisfies the requirements of subsection 994B(8) .

complaint
, in relation to a financial product, means a complaint made to a regulated person about the product, which is covered by a dispute resolution system complying with subsection 912A(2) .

dealing
in a financial product has the meaning given by section 766C , subject to the following:


(a) paragraphs 766C(1)(d) and (e) do not apply;


(b) despite subsection 766C(3) , a person deals in a financial product if the dealing is a regulated sale of the product on the person ' s own behalf;


(c) paragraph 766C(4)(c) does not apply if the dealing is an offer of securities that needs disclosure to investors under Part 6D.2 .

distribution condition
has the meaning given by paragraph 994B(5)(c) .

distribution information
, in relation to a financial product, has the meaning given by subsection 994F(3) .

excluded conduct
means:


(a) an excluded dealing; or


(b) providing personal advice.

excluded dealing
means a dealing in a financial product that consists of arranging for a retail client to apply for or acquire the product, where the arranging is undertaken:


(a) by a person, or by an associate of a person; and


(b) for the purpose of implementing personal advice that the person has given to the retail client.

financial product
has the meaning given by subsection 994AA(1) .

MySuper product
has the same meaning as in the Superannuation Industry (Supervision) Act 1993 .

regulated person
, in relation to a financial product, means:


(a) the seller of the financial product, if a sale takes place in circumstances described in subsection 707(2) , (3) or (5) or 1012C(5) , (6) or (8) ; or


(b) a regulated person as defined in section 1011B (modified so that the references to financial products include references to securities); or


(c) a person prescribed, in relation to the product, by regulations made for the purposes of this paragraph.

regulated sale
means a sale:


(a) that, under subsection 707(2) , (3) or (5) , needs disclosure to investors under Part 6D.2 ; or


(b) in relation to which a Product Disclosure Statement must be given under subsection 1012C(5) , (6) or (8) ; or


(c) made in circumstances prescribed by regulations made for the purposes of this paragraph.

reporting period
means:


(a) for information about the number of complaints about a financial product - a period specified under paragraph 994B(5)(g) , in the target market determination for the product, as a reporting period for that kind of information; or


(b) for other kinds of information that must be reported under subsection 994F(5) - a period specified under subparagraph 994B(5)(h)(ii) , in the target market determination for the product, as a reporting period for those other kinds of information.

retail product distribution conduct
, in relation to a financial product, means any of the following:


(a) dealing in the product in relation to a retail client;


(b) under Part 6D.2 , giving a disclosure document in relation to an offer of the product to a retail client;


(c) under Part 7.9 , giving a Product Disclosure Statement for the product to a retail client;


(d) providing financial product advice in relation to the product to a retail client.

review period
, for a target market determination, means each of the following:


(a) the period starting on the day the determination is made and ending on the earlier of:


(i) the day that a review of the determination under section 994C is started; and

(ii) the last day of the maximum period specified in the determination under paragraph 994B(5)(e) ;


(b) a period starting on the day after a review of the determination under section 994C is finished and ending on the earlier of:


(i) the day on which the next review of the determination under section 994C is started; and

(ii) the last day of the maximum period specified in the determination under paragraph 994B(5)(f) .

review triggers
, for a target market determination, has the meaning given by paragraph 994B(5)(d) .

target market
, for a financial product, means the class of retail clients described in the target market determination for the product under paragraph 994B(5)(b) .

target market determination
means a determination that:


(a) is made as required by section 994B ; and


(b) meets the requirements of subsections 994B(5) and (8) .

994A(2)  
Section 1010C applies for the purposes of this Part.

Note: Section 1010C affects references to sale and offer.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.