Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.7 - CONTROL, FINANCIAL SERVICES AND DISCLOSURE  

Division 4 - Financial services and markets  

SECTION 1241N   PROHIBITION ON HAWKING OF SECURITIES IN A CCIV  

1241N(1)    
Treat subsection 992A(2) as also providing that subsection 992A(1) does not apply to the offering of securities in a CCIV, hawking of which is prohibited by section 992AA (as extended by this section).

1241N(2)    
Subsection 992AA(1) also applies as if the reference in that subsection to interests in managed investment schemes included a reference to securities in a CCIV.

Note: Failure to comply with subsection 992AA(1) is an offence (see subsection 1311(1) ).

1241N(3)    
Subsection 992AA(1) , as it applies because of subsection (2) of this section, does not apply to an offer of securities in a CCIV if:

(a)    the offer is not to a retail client; or

(b)    the CCIV is a listed company and the offer is an offer of securities in the CCIV made by telephone by a financial services licensee; or

(c)    the offer is made to a client by a financial services licensee through whom the client has acquired or disposed of a security in a CCIV in the previous 12 months.

Note: A defendant bears an evidential burden in relation to the matters in this subsection (see subsection 13.3(3) of the Criminal Code ).

1241N(4)    
For the purposes of subsection 992AA(1) , as it applies because of subsection (2) of this section:

(a)    a reference to offering securities in a CCIV for issue includes a reference to inviting an application for the issue of securities in the CCIV; and

(b)    a reference to offering securities in a CCIV for sale includes a reference to inviting an offer to purchase securities in the CCIV.

1241N(5)    
Subsection 736(1) (about prohibiting the hawking of securities) does not apply to securities in a CCIV.

Note: A defendant bears an evidential burden in relation to the matter in this subsection (see subsection 13.3(3) of the Criminal Code ).