Corporations Act 2001

CHAPTER 6D - FUNDRAISING  

PART 6D.3A - CROWD-SOURCED FUNDING  

Division 6 - Additional protections for retail clients  

SECTION 738ZE   COMPANY MAKING CSF OFFER OR CSF INTERMEDIARY ETC. MUST NOT FINANCIALLY ASSIST RETAIL CLIENT TO ACQUIRE SECURITIES  

738ZE(1)  
This section applies to the following persons in relation to a CSF offer made by a company or that a company intends to make:


(a) the company;


(b) a related party of the company;


(c) a CSF intermediary that is or intends to be the responsible intermediary in relation to the CSF offer;


(d) an associate of such a CSF intermediary.

738ZE(2)  
A person to whom this section applies must not:


(a) financially assist a person who is a retail client in relation to the CSF offer to acquire securities pursuant to the offer; or


(b) arrange financial assistance for such a person to acquire securities pursuant to the CSF offer.

Note 1: This subsection applies to financial assistance provided by the company even if that assistance does not contravene section 260A .

Note 2: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

738ZE(3)  
Without limiting subsection (2), the prohibition on financial assistance:


(a) applies whether the financial assistance is provided or arranged before or after the acquisition of securities pursuant to the CSF offer; and


(b) extends to the provision of financial assistance in the form of a dividend.

738ZE(4)  
In this section,

financially assist
and financial assistance
have the same meanings as they have in section 260A .


 

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