Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

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

Division 2 - Target market determinations for financial products  

SECTION 994D   994D   PROHIBITION ON ENGAGING IN RETAIL PRODUCT DISTRIBUTION CONDUCT UNLESS TARGET MARKET DETERMINATION MADE  


If:

(a)  under section 994B , a person must make a target market determination for a financial product but the determination has not been made; and

(b)  the product is on offer for acquisition by issue, or for regulated sale, to retail clients;

a regulated person must not engage in retail product distribution conduct in relation to the product unless:

(c)  the regulated person made all inquiries (if any) that were reasonable in the circumstances and, after doing so, believed on reasonable grounds that:


(i) the determination had been made; or

(ii) this Part does not require a target market determination for the product; or

(d)  the retail product distribution conduct is excluded conduct.

Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

Note 2: In a prosecution for an offence, the defendant bears an evidential burden in relation to the matters in paragraphs (c) and (d) (see subsection 13.3(3) of the Criminal Code ).

Note 3: This subsection is also a civil penalty provision (see section 1317E ). For relief from liability to a civil penalty relating to this subsection, see section 1317S .


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